GreenPath Debt Solutions Releases Statistics on First Three Months of Credit Card Act Changes

Credit card customers generally view the payment grid and counseling phone number as a positive step

FARMINGTON HILLS, Mich., May 20 /PRNewswire-USNewswire/ -- GreenPath Debt Solutions recently released statistics and consumer feedback concerning some of the Credit Card Act changes that went into effect three months ago on February 22.

"The major change that consumers have seen on their credit card statement is a payment grid showing how long it would take for them to pay off their balance if they only make minimum payments, or how much they would need to pay each month in order to pay off the entire balance within three years," said Jane McNamara, GreenPath president and CEO. "Another change was that a special phone number was provided on statements for consumers interested in credit counseling," she added.

When statement holders saw how long it would take to pay off their balance by making the minimum payments, many were inclined to reach out to learn more about effective debt management.

Since the phone number and grid started to appear on credit card statements in February, GreenPath Debt Solutions has received more than 14,000 calls from consumers who said they called the number on their statement.

"A majority of callers have questions related to their card statements, interest rates and specific credit concerns," said McNamara.  "We answer their questions, refer them back to their credit card companies as appropriate, and provide free counseling sessions to callers who are interested in learning more about how they can better manage their debt," she continued. "If callers are struggling with their credit card payments, we can help many lower their interest rates."

McNamara shared some of the feedback she has heard from GreenPath credit counselors.

• Callers say that credit card statements are now much easier to read.  They are finally getting the nudge that they need to seek education on personal finances and debt issues.  

• Callers are often feeling lost and even embarrassed over their situation.  

• Often it is the first time they have spoke with anyone about their situation.  

• What's really impressing card holders is the table that indicates how long before the debt is paid off if they only make the minimum payment.  

• Some callers are just shopping around and comparing their interest rates to what GreenPath can offer on a debt management program.  

• Callers are showing a newfound awareness and preoccupation with interest rates. All of a sudden, clients are aware of the APR and how just making the minimum payments is not an adequate action plan to managing the debt.

• More people seem more motivated to get out of debt. The payoff box on their credit card statement has really been shocking clients into doing something about their debt. Especially for those who see it will take them 20 years or more to pay off their card at the minimum payment.

• Most callers are ready to take action and want to focus on reducing their interest rates.

• The convenience of having a phone number documented on credit card statements is a big help because many consumers are always on the go and don't have the time to complete their own research.

McNamara concluded that while three months may be too early to determine if the Credit CARD Act changes are successful, she feels that it is a step in the right direction. "If the payment grid and phone number allows a person in need to take that first step and reach out for help with their credit concerns, that is indeed a positive sign."

For more information on GreenPath Debt Solutions, log on to www.greenpath.com or call (866) 648-8122.

GreenPath Debt Solutions is a nationwide, non-profit financial organization that assists consumers with credit card debt, housing debt and bankruptcy concerns. Our customized services and attainable solutions have been helping people achieve their financial goals since 1961. Headquartered in Farmington Hills, Michigan, GreenPath operates 42 full-time branch offices in Michigan, New York, Wisconsin, Illinois, Indiana, Florida and Arizona.  We also deliver licensed services throughout the United States over the Internet and telephone. GreenPath is a member of the National Foundation for Credit Counseling (NFCC).  Our professional counselors are certified by the NFCC, and we are accredited by the Council on Accreditation (COA).  For more information, visit us at www.greenpath.com.

SOURCE GreenPath Debt Solutions

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