Approximately three-fourths (73%) of Americans are uninformed about the benefits of non-profit credit card debt management plans (DMPs).
Harris Poll conducted a new research report on behalf of credit counselling provider Money Management International (MMI).
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The majority (51%) of Americans in credit card debt were found to have used credit card debt relief. The common form of relief was balance transfer to another credit account with 36% availing it.
Meanwhile, 30% of people sought help from friends or family for credit card debt relief, while 27% adopted debt consolidation loans. Only 15% leveraged a DMP.
Lack of awareness surrounding credit card debt relief
MMI noted that these findings indicate lack of awareness on the DMP benefits.
About 62% Americans are unaware that DMP is used to combine credit card debt obligations into a single payment. These payments can be made monthly and distributed among all creditors.
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By GlobalDataIn addition, the majority of Americans do not know that interest rates are low on debts included in a DMP.
MMI senior vice-president of Counseling Jim Triggs said: “It’s difficult to see those challenged by unmanageable debt overlook a proven solution simply because they are unaware of its existence or unfamiliar with its benefits.
“Consumers are deciding how to address their debt without fully understanding all their options, but can make an informed decision by creating a plan with the help of our skilled counsellors.”
