InCharge Debt Solutions Teams With World-Renowned Dr. Robert D. Manning to Help Debt-Stressed Consumers

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Realizing that innovative solutions to consumer debt problems are urgently needed, InCharge Debt Solutions moved quickly to support the work of innovator Robert D. Manning, Ph.D, the inventor of a statistical formula that calculates household debt capacity and repayment capability.

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According to a new report from the Woodstock Foundation, credit card debt has increased 22 percent since 2000, more than doubling from 1989 to 2004. Those statistics are even higher for those who shifted their credit card debts to home equity loans and mortgage refinances. Add to those alarming numbers the fact that household debt is now 126 percent of disposable household income for today's Americans, and this alarming trend suggests that escalating consumer debt has emerged as a major drag on the American economy, especially as housing prices continue to fall.

Realizing that innovative solutions to consumer debt problems are urgently needed, InCharge Debt Solutions moved quickly to support the work of innovator Robert D. Manning, Ph.D, the inventor of a statistical formula that calculates household debt capacity and repayment capability. This new Responsible Debt Relief (RDR) technology provides debt-strapped consumers a precise analysis of their financial situation and identifies the debt resolution plan that is best for them based on their ability to retire their debts over a specific period of time, typically 3-5 years.

The RDR algorithm has been converted to a sophisticated software program and an outstanding team of organizations has been assembled to make this innovation accessible to consumers throughout the United States. Pioneered by Dr. Manning of the Rochester Institute of Technology's E. Philip Saunders College of Business and promoted by the Filene Research Institute, the Responsible Debt Relief (RDR) system features three specific programmatic outcomes for consumers in debt distress: full payment, partial payment and bankruptcy.

For consumers, this "means-tested" approach is an important advance because it recognizes that not all debt problems can be addressed by typical bankruptcy or credit counseling choices. The RDR innovation provides statistically supported answers to debt problems and helps those in debt understand and implement a customized solution.

Hope Financial USA is the exclusive service provider of Dr. Manning's patent-pending RDR formula. Using the algorithm, each person's debt, income and asset information are entered into the RDR software and a specific debt solution is identified based on the statistical analysis of the consumer's financial data.

Those who are determined to be able to repay less than 20% of their unsecured debt over a three-year period are referred to one of the RDR-affiliated bankruptcy attorney networks. Consumers who can pay 20%-60% of their debts during this same period are referred to Hope Financial USA's "Responsible Choice Plan."

Those able to pay more than 60% of their unsecured debts over three years may be helped by participating in a credit counseling program offered by RDR core partner, InCharge Debt Solutions. InCharge is one of the nation's leading nonprofit credit counseling organizations. Its Certified Credit Counselors provide confidential and free budget and credit counseling assistance to debt-distressed consumers as well as a wealth of educational materials and interactive financial tools at http://www.incharge.org.

RDR is organizing grassroots financial empowerment programs that include five-year financial education and skill building support services, along with asset building workshops now being piloted in Cleveland, Ohio.

For more information about free credit counseling, contact InCharge Debt Solutions at (888) 360-9694. A full copy of the Responsible Debt Relief report is available for download at http://filene.org/free/manning or http://www.creditcardnation.com/pdfs/Manning_RDR_Filene_08_F.pdf.

About InCharge® Institute of America, Inc. (http://www.inchargeinstitute.org) Headquartered in Orlando, Florida, InCharge® Institute of America, Inc., is a 501(c)(3) nonprofit organization with affiliates specializing in personal finance education and credit counseling. InCharge® Education Foundation, Inc., publishes Military Money® magazine and offers financial literacy education to clients and the general public. InCharge® Debt Solutions provides professional credit counseling and financial education services to consumers and is a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA). Consumers can access InCharge Debt Solutions credit counseling services for free by calling 1-888-360-9694 or online at http://www.incharge.org.

The names and logos of other third parties, their products and services names shown herein, may be trademarks and/or service marks of their respective owners.

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Jacquie Tremblay
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