Debt Settlement USA Consumer Debt Index Q2 2008. (PRNewsFoto/Debt Settlement USA, Inc.) PHOENIX, AZ UNITED STATES

   Soaring Prices and Delinquency Rates Reverse Softening Of Key Economic
                                 Indicators

    PHOENIX, Sept. 11 /PRNewswire/ -- Debt Settlement USA, a leading debt
settlement company, today reported that the Consumer Debt Index (CDI) stood
at 12.66 at the end of the second quarter 2008, up 7.3 percent since the
end of the first quarter and nearly 32 percent since the second quarter of
last year. The CDI's second quarter increase reverses a steadying trend
experienced between the first quarters of 2007 and 2008 (see attached
graph).

    (Photo: http://www.newscom.com/cgi-bin/prnh/20080911/NETH039 )

    The CDI is a statistical analysis developed by Debt Settlement USA to
measure key economic factors for American consumers who are suffering under
an increasing burden of credit card, car payment, mortgage, and other debt.
It is comprised of the Consumer Price Index (CPI), consumer credit
outstandings, the mortgage delinquency rate, and the unsecured loan
delinquency rate.

    The second quarter rise of the CDI was driven largely by American's
soaring mortgage delinquency rate and consumer loan delinquency rate, which
includes non-secured loans such as credit cards. Additionally, the CPI
spiked slightly after climbing steadily but mildly over the past year.

    The second quarter mortgage delinquency rate of 4.33 -- 99 percent
higher than a year ago -- experienced its largest quarterly increase since
2007. Aside from the mortgage delinquency rate, outstanding consumer credit
grew by more than $31 billion in the second quarter 2008, and nearly $137
billion since 2007. The consumer loan delinquency rate also increased
during that same period by 23 percent to 3.57. Energy and food prices
forced the CPI, an indicator widely used to measure inflation and price
changes in the U.S. economy, up by 2.2 percent during the past quarter and
4.3 percent in the past year.

    "American consumers continue to suffer under a stagnant economy,
slumping housing market, and higher energy and food prices," said Jack
Craven, President of Debt Settlement USA. "The Consumer Debt Index gives an
accurate snapshot of the challenges facing consumers as they struggle to
make ends meet while also trying to stay out of debt. As the numbers in the
most recent CDI show, it is getting harder and harder for many Americans to
financially keep their heads above water."

    The pressure of increased debt is already being felt in the economy. As
consumer debt mounts, Americans will seek solutions to help them deal with
their increased indebtedness. Debt Settlement USA expects to see a 40
percent increase in the number of consumers in 2008 that turn to debt
settlement as the best solution to help them deal with financial hardship.
Legitimate debt settlement companies can help people avoid bankruptcy and
get out of debt efficiently and expeditiously by negotiating a settlement
for a portion of the debt with their creditors.

    Debt Settlement USA emphasizes the critical need to establish standards
within the debt settlement industry now in order to protect consumers from
fraudulent and unethical debt settlement practices. According to Debt
Settlement USA, consumers and creditors should review the practices of debt
settlement companies prior to entering a debt settlement agreement. A
legitimate debt settlement company should meet the following guidelines:



    -- Have written policies and procedures.

    -- Be a member of the Better Business Bureau.

    -- Have comprehensive "Debt Settlement Company Certification"
       documentation similar to what creditors may require for their
       collection agencies and other vendors.

    -- Have an open door policy as to regulatory agencies and vendor
       certification for creditors.

    -- Have an in house attorney with significant credit industry compliance
       experience and a customer dispute resolution review process.

    About the Consumer Debt Index Methodology

    The CDI is calculated each quarter by adding the quarterly average of
the U.S. Department of Commerce's monthly Consumer Price Index, the Federal
Reserve's quarterly average of consumer credit outstandings, and the
Federal Reserve's quarterly mortgage delinquency and unsecured consumer
loan delinquency rates. Consumer credit outstandings reflected in the CDI
include revolving and non-revolving short or medium term credit to
individuals, excluding loans secured by real estate. The mortgage
delinquency rate reflected in the CDI is based on real estate loans
including loans secured by one to four family properties, including home
equity lines of credit. Unsecured consumer loan delinquency rates include
credit cards as well as other personal consumer loans.

    About Debt Settlement USA

    Debt Settlement USA, Inc. is the leading debt settlement company in the
United States, offering an honorable and ethical alternative to bankruptcy.
Located in Phoenix, Arizona, the company currently serves over 17,000
clients, and has settled nearly $140 million in balances since inception in
2003. On average, Debt Settlement USA settles clients' debts for 45 to 55
percent of the outstanding balances that are brought into the program
within a period of one to three years.

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