“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.”

Debt Management Program Cancellation Reasons

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 “stopped making payments”. Some of these clients filed bankruptcy, signed up for debt settlement or could no longer afford payments altogether. A small percentage decided to go back to paying it on their own at the higher interest rates.

“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 the active clients are on their final year of their program. Although the typical Debt Management Program concludes in less than 5 years, clients can extend their plan by adding more accounts. New debts can be added at any time which will increase the total time on the program.