The success and failure of counseling agency debt repayment plans

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

Research output: Contribution to journalArticlepeer-review

6 Scopus citations


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
Issue number1
StatePublished - Dec 2012


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

ASJC Scopus subject areas

  • Economics and Econometrics


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