The Success and Failure of Counseling Agency Debt Repayment Plans

Daniel T Brown (), Charles Link and Michael E Staten ()
Additional contact information
Daniel T Brown: Center for Applied Demography & Survey Research, University of Delaware, 290 Graham Hall, Newark, Delaware 19716, USA.
Michael E Staten: Retailing and Consumer Sciences, University of Arizona, McClelland Park Room 425G, 650 N, Park Ave, Tucson, Arizona 85721, USA.

Eastern Economic Journal, 2012, vol. 38, issue 1, 99-117

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.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.palgrave-journals.com/eej/journal/v38/n1/pdf/eej201054a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/eej/journal/v38/n1/full/eej201054a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:easeco:v:38:y:2012:i:1:p:99-117

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/41302

Access Statistics for this article

Eastern Economic Journal is currently edited by Allan Zebedee and Cynthia Bansak

More articles in Eastern Economic Journal from Palgrave Macmillan, Eastern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().