We should see, industry wide, a substantial and credible increase in the success rate of individuals placed in debt management programs.
Rapid City, South Dakota (PRWEB) July 25, 2012
Todd Ossenfort, Chief Operating Officer of South Dakota based Pioneer Credit Counseling believes that a new unsecured debt repayment probability indicator, known as the Debt Capacity Score, may be a better indicator of an individual’s ability to restructure their debt through services provided by credit counseling agencies.
In early studies, the Debt Capacity Score differs dramatically from the FICO score developed by the Fair Isaac Corporation and used by most financial institutions in measuring a borrower's ability to repay debt.
“The Debt Capacity Score differs from the FICO score in that the FICO score measures the probability of an individual’s ability to repay debt using historical indicators, whereas the Debt Capacity Score is a snapshot of the individual's current capacity to repay their debt obligations,” notes Ossenfort.
According to Todd Ossenfort, the Debt Capacity Score, developed by Dr. Robert Manning will provide Pioneer Credit Counseling with a substantial and powerful tool in measuring the probability that a borrower will succeed if placed on a debt relief plan.
“We should see, industry wide, a substantial and credible increase in the success rate of individuals placed in debt management programs, considering that the Debt Capacity Score provides agencies and creditors with a current, up-to-the-minute indicator of an individual’s debt capacity and probability of repayment,” adds Ossenfort.
Further, Todd Ossenfort indicates that individuals not within the standardized score range for consideration by creditors in a debt management plan, will have more options. New debt relief options available to consumers as a result of their Debt Capacity Score could range from hybrid debt management plans to total debt restructuring, without filing bankruptcy.
“Credit Counseling Agencies have to advance the methodologies used to measure consumer debt and if the industry is to remain viable, it must be able to provide both the debtor as well as the creditor, an unbiased opinion on the debtor's ability to repay. Having this tool will allow Pioneer Credit Counseling to continue to increase success rates for individuals placed in the agencies debt management plans, and continue to evolve the products and services available from Pioneer Credit Counseling,” adds Laca Ossenfort, Administrator of Pioneer Credit Counseling.
Pioneer Credit Counseling is a South Dakota based 501(c)(3) non-profit Debt Relief Company dedicated to assisting individuals and families struggling with consumer debt. For media inquiries or requests for interviews, contact Liquid Communications Company through any of the methods captioned above.