Creditors’ policies regarding interest reduction vary dramatically, ranging from no charge to freezing interest. With interest rates typically at 15% to 21%, interest reduction can save a client thousands, and for heavy debtors, tens of thousands of dollars. Obtaining interest reduction on just one or two accounts my warrant enrollment in our program. Let’s look at the following example:

The information is presented only to illustrate a possible scenario. It does not take into account service fees, nor does it consider other savings and benefits a client may gain. You should also remember that the above calculations are based on "fixed" monthly payments, as is the case for clients enrolled in our program. However, debtors experiencing financial hardship typically only pay the "minimum" payment due required by the creditor.

When consumers only make the "minimum" payment due, liquidation could easily exceed 10 years, and in some situations, the account may never liquidate. This is especially true when late fees, over-limit charges and annual fees are assessed. In reality, the actual interest paid by the typical debtor making "minimum" payments is vastly greater than the amounts listed above. The combination of "reduced" interest and "fixed" monthly-consolidated payments is the real benefit of our Debt Management Program. Exactly how much our program saves a client depends entirely upon the client’s mix of creditors, debt, and other circumstances.