Recent data out in the Federal Reserve Bank of New York report, Quarterly Report on Household Debt and Credit, contains a stark graph that shows why the demand for traditional debt relief service niches has not been accelerating.
As you can see above, originations in mortgages, auto loans, and student loan debt are the growing categories.
But additional data shows consumers have been doing better overall with managing their debt and fewer are facing foreclosure and filing bankruptcy.
If anything, the growing opportunity is in the student loan assistance market. “Outstanding student loan balances increased by $20 billion, and stood at $1.279 trillion as of September 30, 2016,” said the report.
But this market has its set of unique challenges and risks for debt relief companies in both federal and private student loan assistance.