Excessive Credit Debt

Credit Counseling or Manning's Responsible Choice Plan?

Professor at the Rochester Institute of Technology, Director of the Center for Consumer Financial Services and the famous author of Credit Card Nation who acted in "Debt We Trust" and "What Would Jesus Buy", Dr. Robert Manning, has come up with a brilliant solution for excessive debt holders and their card companies.

Consumer credit counseling organizations might lose their popularity once the Responsible Choice Plan takes on all the indebted clients in all the states. What makes it so popular? What are the winning points of Manning's program? Let's see how the Responsible Choice Plan approaches the problem of excessive debt that has overcome lots of American households.

Dr. Manning knows the advantage of introducing helping solutions at the time they're most needed. The credit crunch and the universal default clause together with the subprime mortgage crisis are ruining people's wallets and lives. Consumer credit counseling services (CCCS), though having individual approach for each their customer, do not always change things back on track.

Manning's complex algorithm introduced as "Responsible Debt Relief Grading System" can define exactly how much of outstanding debt a person can actually afford to repay. The calculation formula involves the following factors from the customers' personal and financial background: the customer's total income; his/her employment status; whether they rent or own a home; live alone or are still dependent, and how much is left after the taxes.

The formula will also consider the current bankruptcy rules and how they would apply to the customer. Based on this grading system it will be possible to define who should benefit from consumer credit counseling (as being able to make most of repayment), who should take the Responsible Choice plan (with the ability to pay only a small fraction of the owed) and who can only use the Debtor Attorney Network (bankruptcy threat).

It is expected to be a free-assessment program to help people find a most suitable debt management plan. Unlike CCCS with their 5-year program, the Responsible Choice plan is three-year-based.

Dr. Manning claims that his project allows for a win-win solution for both, people facing the threat of bankruptcy and creditors trying to avoid losses. He says they keep to the three main points ensuring the success of the Responsible Choice program: they determine exactly how much you could pay, they fairly prove it by documents and they give adequate assistance throughout the whole plan.

If there is a need, they can suggest you apply for a credit card that could help raise your FICO score while you are catching up with the past due bills and fixing up your finances. Don't think another plastic card is true evil now that you are suffering from its "predatory" nature. Most of customers are still sure that their ruined finances and empty wallets are the direct consequence of companies' plan to suck all the money out of them. No, it's only a matter of your knowledge level and realization what you can afford.

Estimates go that if more people read through the fine print, fewer would have to go any repayment plan at all.