 Community
Advantage guarantees that, during the first year of partnership,
your bank will reduce loan losses by more than the cost
of the program itself.
One survey estimates that
banks lose about $5,000 per charge off. Consider how
much money your bank would save if Community Advantage
helped prevent just one customer each month from charging
off. Your savings will more than justify the program’s
minimal cost.
A national study recently released by
Georgetown University found that customers who received
financial counseling demonstrated significant improvements
in credit scores, fewer late payments, lower credit
card balances, and less frequent use of credit lines.
Following are some specific findings regarding
those people counseled, compared with similar consumers
who did not receive counseling:
- They were 38 percent less likely to suffer an account
charge off or file for bankruptcy.
- They posted an average of 11 fewer delinquencies
in the last year of the observation period.
- Their credit scores increased an average of 36 points
more than the comparison group.
- They lowered the amount of non-mortgage debt by
an average of $14,400 more than the comparison group.
These statistics do not even include consumers
who participated in a debt management plan. Otherwise,
the results would be even far more impressive! |
