Debt Management Plans Prove to be Successful for DebtWave Clients

Escondido, CA, January 05, 2025 --(PR.com)-- Debt Management Plans seem like a practical way to pay off your credit card debt. After all, who doesn’t want lower interest rates? Wouldn’t we all love to have lower payments as well? But what are the success rates of clients completing the plan?

DebtWave Credit Counseling analyzed data on clients that enrolled on their program during a five-year period from 2016 to 2020. Results showed that 68.4% percent successfully completed their debt management plan. During that period, 14,670 people enrolled and 10,038 of them have since paid their debt in full.

“It’s great to see such a high percentage of clients pay off their debt on our program,” said Michael Marsden, Director of Operations. “A lot of clients that seek our help are struggling immensely with credit card debt and other bills. They’re living paycheck to paycheck. It’s quite an accomplishment for them to overcome their financial challenges and become debt free.”

Not all clients reached their final destination of financial freedom as 4,123 clients (28.1%) cancelled their plan. The most common reason for termination was “unable to afford the payment.” Some of these clients filed bankruptcy, signed up for debt settlement or simply stopped making payments altogether.

“Most of our clients come to us without an emergency fund,” Marsden added. “We help them with their budgeting, encouraging them to start saving. But financial hardships like loss of income or medical expenses are too much for them to overcome.”

The remaining 509 clients (3.5%) are still actively paying off their debt. Most of them are on their final year of the program.

DebtWave Credit Counseling, Inc. is a nonprofit organization that has been providing credit counseling and debt management plans since 2002.