A Debt Management Plan (DMP) helps consumers who are struggling with
credit card debt develop reduced payment programs with creditors. Many
creditors offer favorable repayment terms to consumers who enroll in a
DMP, including interest rates ranging from 6% to 10% on their credit
card debt. These creditors may also eliminate late fees and penalties
once a consumer enrolls in a DMP with a nonprofit credit counseling
organization.
CredAbility says that the consumers on its Debt Management Plans in 2010
had higher incomes, more credit card debt and were older than in
previous years.
In 2010, the average income of a person on a DMP with CredAbility was
$53,880, a four percent increase compared to 2009. Each person on a DMP
in 2010 had an average of $24,266 in credit card debt, a 4.5 percent
increase compared to 2009. The average age of a person on DMP in 2010
was 48, up from 45 years old in 2009.
“While people enrolling in our DMPs earn good incomes, they have an
increasing amount of credit card debt,” Williams said. “We can help them
negotiate lower interest rates with their creditors that may result in
lower monthly payments.”
read more at Debt Consolidation Counselling
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