Return to Common Questions
- How can you get people out of debt so fast?
- Just as your debt snowballed due to high interest charges, obtaining lower interest rartes slows the growth of debt and allows more of your money to go to debt reduction rather than interest.
More importantly, using a debt management Plan allows for "debt roll down".
The natural inclination when a debt is paid off is to use those monthly payments for a discretionary purpose -- buy something new, go out more, upgrade your electronics, etc.
When on a DMP, the monthly payment dedicated to debt reduction stays the same.
When one account is paid, those funds are "rolled down" so payments to another debt increase.
This speeds the process along. This process saves you thousands in interest over the course of a 5 year program.
It also explains why a debt that will take 23 years to pay off at the current rate can be eliminated in 5 years.