STAFFORD, Texas, Aug. 08, 2022 (GLOBE NEWSWIRE) -- A new study by Money Management International (MMI) shows consumers with unmanageable debt who reach out for help not only improve their finances, but also their credit scores.
MMI conducted a four-year analysis of credit score data and found that clients who started and maintained a debt management plan (DMP) with MMI improved their credit scores by 90 points from start to finish on the program. In aggregate, this moves the average client credit score into the prime credit range.
The average DMP also reduces participating creditor interest rates to under 7% APR and repayment is completed in four years, according to additional insights recently published by MMI.
The study tracked the annual aggregate FICO® 9 Score migration over time for MMI clients who started and maintained a DMP.*
Initial score: 588
Year one: 631
Year two: 661
Year three: 667
Year four: 678
*Individual outcomes will vary, and results are not guaranteed.
MMI client Marlon Ibarra of Los Angeles County, California, not only paid off almost $100,000 in debt, but raised his credit score by a staggering 217 points, from 508 to 725. Ibarra credits MMI with helping him reach financial security: “I would say it was the best thing I could have done with my financial struggles. MMI really helped me get back on my feet.”
These scores are significant as more Americans look to buy homes and rent apartments.
A recent study from WalletHub provides a glimpse of average credit scores in cities across the country. The Villages, Florida and Sun City West, Arizona top the list. Average credit scores for their residents are 806 and 792.
However, at the bottom of the list – Winter Haven, Florida and Las Vegas, Nevada where the average credit score for residents is just 524, according to WalletHub.
MMI clients who have reached out for help with debt say that it can be life-changing.
Joanne Lee of West Lafayette, Indiana saw her credit score jump 111 points as she paid off more than $25,000 in debt through a DMP with MMI. She said, “MMI’s debt management plan literally saved my life. I’m on my way to being debt-free and paying off my student loans.”
MMI client Meredith Kutner of Manhattan, New York, is another success and enjoys telling her story. Her credit score jumped 124 points as she paid off more than $50,000 in debt on a DMP with MMI. She said, “It was important to get help in creating a budget. I stuck with it, and it worked for me!”
MMI offers confidential online counseling and debt analysis, returning a debt management plan estimate within minutes. Consumers can also connect with a certified counselor at MMI 24/7 by phone or live chat to discuss their situation, review their options, and create a plan.
About MMI
Money Management International (MMI) is changing how America overcomes financial challenges. MMI helps create, restore, and maintain a life of financial wellness through empowered choices. For over 60 years, our clients have achieved financial confidence through nonprofit programs that educate, motivate, and liberate. MMI inspires action by delivering expert professional guidance and timely solutions aligned with our client's goals. Experiencing a financial challenge? Find your solution 24/7 at 866.864.8995 and MoneyManagement.org.
For reporters looking to interview real people for stories about debt, MMI has created a group of former clients from across the country who are willing to share their experiences with the media in the hopes of inspiring others. MMI Peer Advocates have paid off a combined total of over $9 million of debt and now serve as MMI ambassadors.
To schedule an interview with Thomas Nitzsche and any of our MMI Peer Advocates including Marlon Ibarra, Joanne Lee, or Meredith Kutner, please contact:
Thomas Nitzsche, 404.490.2227, Thomas.Nitzsche@MoneyManagement.org
Lori Geary, 404.551.2151, lgeary@lexiconstrategies.com
