Debt Settlement Market Trends and Analysis by Application, Vertical, Region, and Segment Forecast to 2029

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The Business Research Company's Debt Settlement Market Trends and Analysis by Application, Vertical, Region, and Segment Forecast to 2029

LONDON, GREATER LONDON, UNITED KINGDOM, September 29, 2025 /EINPresswire.com/ -- "Get 30% Off All Global Market Reports With Code ONLINE30 – Stay Ahead Of Trade Shifts, Macroeconomic Trends, And Industry Disruptors

What Is The Estimated Industry Size Of Debt Settlement Market?
The dimension of the debt settlement market has experienced significant growth in the past few years. Projected to increase from $9.00 billion in 2024 to $9.84 billion in 2025, with a compound annual growth rate (CAGR) of 9.4%. Factors contributing to this growth during this historical phase include an upsurge in unemployment rates, an escalation in the use of consumer credit cards, a rise in the ratio of household debt to income, a hike in medical costs that lack insurance cover, and increments in interest rates during previous debt cycles.

The debt settlement market forecast shows robust expansion in the upcoming years, with predictions reaching $13.91 billion by 2029, growing at a compound annual growth rate (CAGR) of 9.0%. The projected growth during this period is due to several factors such as the escalating living expenses outstripping wage growth, the proliferation of buy now, pay later (BNPL) defaults, and increased dependence on unsecured digital lending platforms. Other factors include the intensifying student loan repayment duties post-forbearance and the growing financial strain on younger age groups. The forecast period is also expected to witness major innovations such as the use of AI in debt negotiation tools, growth in digital payment platforms, evolution in regulatory frameworks, advances in financial literacy programs, and the adoption of blockchain technology.

Download a free sample of the debt settlement market report:
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What Are The Major Factors Driving The Debt Settlement Global Market Growth?
The anticipated growth of the debt settlement market is likely to be fueled by the rising utilisation of credit cards. These payment cards, issued by banks or financial establishments, enable cardholders to borrow funds for purchases or cash withdrawals up to a certain limit, which can be paid back later, often with additional interest. The growth in credit card usage is attributed to consumers' increasing preference for secure, cashless transactions that offer convenience. Debt settlement provides assistance to credit card users by bargaining with lenders to lower the total balance due. This allows debtors to pay a smaller sum than they owe, thereby avoiding bankruptcy or default. For example, in April 2025, it was reported by Expensify, an American software firm, that over 800 million credit cards were being used in the United States, with the average American possessing 3.9 cards. Furthermore, credit cards account for approximately 31% of all types of payment transactions and the payment volume from these cards increased by 8.2% in 2022 compared to the previous year. Consequently, the increasing adoption of credit cards is encouraging the expansion of the debt settlement market.

Who Are The Leading Companies In The Debt Settlement Market?
Major players in the Debt Settlement Global Market Report 2025 include:
• Freedom Debt Relief LLC
• National Debt Relief LLC
• The J.G. Wentworth Company LLC
• ClearOne Advantage LLC
• GreenPath Financial Wellness
• Americor Funding LLC
• Century Support Services LLC
• TurboDebt LLC
• Alleviate Financial Solutions LLC
• CreditAssociates LLC

What Are The Key Trends Shaping The Debt Settlement Industry?
Prominent companies in the debt settlement market are focusing on devising advanced solutions, such as voice AI agents, to amplify customer engagement, simplify collections, and assure compliance. A voice AI agent essentially interacts with users verbally, performing tasks like debt reminders, negotiations, and customer support automation. For example, Kikoff Inc., a credit-building enterprise based in the US, launched an AI-driven Debt Negotiator in April 2025. Its purpose is to facilitate users in automating debt repayment schemes and negotiating effectively with creditors. It simplifies the negotiation process with debt collectors, leading to an average debt reduction of 30%, thereby making debt relief more manageable and cost-effective. It alleviates user stress by managing calls and provides higher success rates compared to human negotiators. The ultimate purpose is to grant millions of Americans a more intelligent and inclusive means of managing and settling their debt and uplifting their financial wellbeing.

What Are The Primary Segments Covered In The Global Debt Settlement Market Report?
The debt settlement market covered in this report is segmented

1) By Type: Credit Card Debt Settlement, Mortgage Debt Settlement, Student Loan Debt Settlement, Medical Debt Settlement, Personal Loan Debt Settlement, Other Types
2) By Debt Amount: Low-Value Debt (Up To $10,000), Medium-Value Debt ($10,001 To $50,000), High-Value Debt (Over $50,000)
3) By Distribution Channel: Online Or Digital Platforms, Offline Or Traditional Channels
4) By End-User: Individuals, Small And Medium Enterprises, Large Enterprises

Subsegments:
1) By Credit Card Debt Settlement: Secured Credit Card Debt, Unsecured Credit Card Debt, Store Credit Card Debt
2) By Mortgage Debt Settlement: Primary Residence Mortgage, Secondary Residence Mortgage, Commercial Property Mortgage
3) By Student Loan Debt Settlement: Federal Student Loans, Private Student Loans, Parent Plus Loans
4) By Medical Debt Settlement: Hospital Bills, Doctor’s Fees, Prescription Medication Debt
5) By Personal Loan Debt Settlement: Secured Personal Loans, Unsecured Personal Loans, Payday Loans
6) By Other Types: Utility Bills Settlement, Tax Debt Settlement, Legal Fee Debt Settlement

View the full debt settlement market report:
https://www.thebusinessresearchcompany.com/report/debt-settlement-global-market-report

Which Region Is Forecasted To Grow The Fastest In The Debt Settlement Industry?
In the 2025 Global Market Report for Debt Settlement, North America was identified as the dominant region as of 2024. Predictions indicate that Asia-Pacific will experience the most rapid growth within the forecast period. The report encompasses regions including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

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