With the total credit card debt amount rapidly approaching $1.2 trillion, many consumers are struggling to make ends meet. According to LendingTree, the average household in the United States owes $7,236 – a 38% increase from 2021. The average interest rate on credit cards currently is an ugly 24.26%. When you connect these stats with the fact that millions of Americans pay only the minimum payments each month, climbing out of debt seems nearly impossible for some in 2025. At least trying to do so on your own is.

Luckily, benefits like lower monthly payments and lower interest rates are available through Debt Management Programs. And thanks to record breaking savings at DebtWave in 2024, these benefits make it possible to achieve financial freedom.

Debt Management Plan Payment Reduction
Clients that enrolled onto DebtWave’s Debt Management Program (DMP) in 2024 merited an average payment reduction of $220. The average minimum payment plummeted from $915 to $695. This shatters the previous year’s record of a $193 payment reduction.

A big factor that made these savings possible are the attractive concessions offered by the credit card companies. In 2021, creditors wanted about 2.71% of the balance as the monthly payment to enter a DMP. In 2024, that percentage decreased to 2.54%. Additionally, payments on own increased from 2021 to 2024. Creditors required about 3.15% of the balance when making payments on their own in 2021. That percentage increased to 3.35% in 2024.

Credit card companies have been generous with interest rates on DMPs as well. In 2020, the average interest rate obtained on the DMP was 8.2%. In 2024, the average APR dropped to 6.8%, setting a new record at DebtWave. As payments on own increased in 2024, so did the interest rates on own. The average APR per client on own in 2024 peaked at 23%.

Average Debt Per Client Enrolled
The average balance enrolled per client soared in in the last two years. Another record high established in 2024 with the average surpassing $27,000. This is nearly double the amount of $15,799 in 2022.

When you combine the payment savings and the monthly finance charge savings, you have clients making significant progress to their principal balance. From 2020-2022, the average total combined monthly savings was less than $300. In 2024, the monthly savings nearly doubled to $596.

We expect and hope these incredible concessions to continue in 2025. For those facing high balances on their credit cards and experiencing a financial hardship, help is available. Taking the first step toward financial freedom is the most important step to take. Find more information about credit counseling and our program or get started online.

?To schedule a free consultation with a nonprofit credit counselor, take our quick screener at https://link.upsolve.org/dmpHelp ?

???? Upsolve is the internet’s leading nonprofit source of financial literacy education. Nearly 3 million Americans visit Upsolve.org each year. Our services are 100% free. Here’s how we do it: https://bit.ly/howitsfree

? Debt Management Plan = All eligible debts pulled into a 3-5 year repayment plan.
? Plan is overseen by a credit counselor.

?? DMP can hurt your credit score in the short term, especially if you have a strong score when you start the DMP.
?? DMP can save you money over time by lowering your interest rates (and potentially getting fees waived).
?? DMP streamlines your monthly debt repayment which can make it easier to stay on track.

?Questions? Let us know in the comments!

In this informative video, we dive deep into the world of debt counseling, unraveling its meaning, significance, and how it can work wonders in managing your debts aptly. Debt counseling is a crucial service that provides expert guidance and support to help individuals navigate the challenging realm of debts with ease.

Subscription link: https://www.youtube.com/channel/UCnK5TLNFTee5x7_yeIJa5fA

Video link: https://youtu.be/kRAKzXnIkaw

With our insightful explanation, you’ll gain a thorough understanding of the nuances involved in debt counseling and realize how it can positively impact your financial well-being. So, if you’re eager to take control of your debts and improve your financial situation, this video is a must-watch! Don’t forget to hit the like button and share it with others seeking effective debt management strategies.

For further insight you may refer to the links below:

Link 1 – https://www.liberty.co.za/media-insights/what-you-should-know-about-debt-counselling

Link 2 – https://www.moneymanagement.org/credit-counseling/what-is-debt-counseling

Link 3 – https://www.investopedia.com/terms/c/credit-counseling.asp

**Unlocking Financial Freedom: Understanding Debt Counseling**

In the labyrinth of financial challenges, debt counseling emerges as a guiding light, offering individuals a pathway toward economic well-being. Let’s delve into the world of debt counseling, exploring its significance and drawing inspiration from the experiences of the iconic figure, Mike Tyson.

**What is Debt Counseling?**
At its core, debt counseling is a professional service designed to assist individuals facing financial struggles, offering expert guidance on managing and overcoming debt. It involves a comprehensive analysis of one’s financial situation, creating a personalized plan to navigate through debt, and providing ongoing support.

**Key Components of Debt Counseling:**

1. **Credit Counseling:**
– A central aspect of debt counseling involves credit counseling. Professionals work with individuals to understand their credit reports, identify areas for improvement, and devise strategies to enhance credit scores.

2. **Debt Relief Strategies:**
– Debt counseling encompasses a range of relief strategies. From negotiating with creditors to debt consolidation plans, the aim is to create manageable repayment structures tailored to the individual’s financial capacity.

3. **Educational Insights:**
– Debt counseling is an educational journey. Individuals gain insights into financial concepts, learning how to budget effectively, avoid common pitfalls, and build a foundation for sustainable financial health.

**Learning from Mike Tyson’s Financial Odyssey:**

Mike Tyson, a legend in the boxing ring, faced formidable opponents outside it – financial challenges that led to a reported $60 million debt. Tyson’s journey underscores the importance of seeking professional help when facing financial adversity.

**Mike Tyson and Debt Counseling:**
– Tyson’s acknowledgment of financial problems marked the beginning of his transformation. Engaging in debt counseling, he embraced the opportunity to learn and implement strategies to address his substantial debt.

**Wealth Beyond Millions:**
– Tyson’s story extends beyond the debt; it’s a tale of resilience and financial rebirth. By leveraging debt counseling, he navigated the complexities of wealth and emerged with newfound knowledge and control over his financial destiny.

**Key Takeaways:**
– Debt counseling is a proactive step toward financial empowerment.
– Credit counseling is integral to understanding and improving credit health.
– Debt relief strategies offer practical solutions for managing and reducing debt.
– Educational components equip individuals with lifelong financial skills.

In conclusion, debt counseling is not merely a service; it’s a transformative journey toward financial freedom. Drawing inspiration from Mike Tyson’s resilience, individuals can embark on their path to economic well-being, armed with the tools and insights gained through debt counseling.