The success and failure of counseling agency debt repayment plans

Daniel T. Brown, Charles R. Link, Michael E Staten

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This paper investigates whether success on a counseling agency-administered Debt Management Plan (DMP), as measured by the amount of original debt repaid, can be predicted at the time of counseling based on observable client and debt attributes. The paper utilizes a unique database of over 17,000 consumers who were counseled and recommended for a DMP by a large non-profit credit counseling agency during 2003. Of particular interest to counseling agencies and creditors is the finding that the magnitude of the interest rate reduction offered by creditors to consumers on a DMP has a significant, positive influence on debt repayment.

Original languageEnglish (US)
Pages (from-to)99-117
Number of pages19
JournalEastern Economic Journal
Volume38
Issue number1
DOIs
StatePublished - Dec 2012

Fingerprint

Counseling
Debt repayment
Management plan
Debt management
Debt
Interest rates
Data base
Credit

Keywords

  • bankruptcy
  • consumer finance
  • credit counseling
  • Debt Management Plan

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

The success and failure of counseling agency debt repayment plans. / Brown, Daniel T.; Link, Charles R.; Staten, Michael E.

In: Eastern Economic Journal, Vol. 38, No. 1, 12.2012, p. 99-117.

Research output: Contribution to journalArticle

Brown, Daniel T. ; Link, Charles R. ; Staten, Michael E. / The success and failure of counseling agency debt repayment plans. In: Eastern Economic Journal. 2012 ; Vol. 38, No. 1. pp. 99-117.
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