San Francisco, CA – EARN.org is pleased to partner with Consumer Education Services, Inc. (CESI) announce a ground-breaking new product, Debt Management Plan (DMP) Plus. The DMP Plus will give consumers the power to enhance their economic security on two fronts: Through eliminating crippling unsecured debt while building real savings.
CESI is able to offer the DMP Plus product through a unique partnership with EARN.org to integrate the SaverLife program with CESI’s Debt Management Plan. With the support of two trusted nonprofits, working families can conquer debt and achieve prosperity through savings.
According to the Federal Reserve, nearly half of Americans do not have enough savings to cover a $400 expense without going into debt or selling something. Yet even small amounts of savings can make a significant difference for these families. In fact, households with just $250 – $749 in savings are less likely to be evicted, miss a housing or utilities payment, or receive public benefits.
The DMP Plus program will feature all the benefits of a traditional Debt Management Plan. Following a complete financial counseling session with a certified counselor and the development of a workable budget, eligible consumers have the option of enrolling in a DMP which typically include lower interest rates, reduced fees, and lower monthly payments through automated payments to creditors. In addition, CESI’s DMP Plus customers have the opportunity to join the innovative SaverLife program that has assisted more than 100,000 individuals offered by nonprofit EARN. SaverLife uses financial incentives, coaching content, and timely nudges to build a habit of saving. Savers are guaranteed up to $60 for saving at least $20 per month, plus additional time-limited prize promotions. On average, participants save $465 in their first six months.
“We are excited to partner with EARN, whose success in helping consumers take the steps to save is so well known,” said Mike Croxson, President/CEO of CESI. “Over nearly 20 years, CESI has assisted millions of consumers struggling to gain control of their debt through our counseling, budgeting, and debt management plans. Until now, we did not have a method to ensure that savings were actually achieved in a consumer’s budget as they paid down their debt. We believe that the innovation of integrating EARN’s SaverLife program into our traditional DMP offering will be a catalyst for resolving debt issues and helping families build the savings that can provide financial freedom.”
“We know that consumers’ financial lives are complicated – beyond the day-to-day management of money flowing in and out, there are competing interests between paying down debt and saving,” says David Derryck, Chief Impact Officer of EARN. “We’re excited about this partnership because DMP Plus users won’t have to make the trade off – they can do both.”
Founded in 2001, EARN is a national, award-winning nonprofit, whose mission is to create prosperity for low income families by helping them save and invest in their futures. EARN works at the intersection of financial technology and financial inclusion to develop online programs that empower low-income Americans to take charge of their financial lives. In 2016, EARN was identified by the Center for Financial Service Innovation’s Financial Solutions Lab as one of the most promising innovations to help increase savings and manage financial shocks. To learn more, visit earn.org and follow us on Twitter @earn.
Consumer Education Services, Inc. (CESI) is a non-profit service provider of comprehensive personal financial education and solutions for all life stages and for all of life’s milestones. Our goal is enhanced economic security for everyone we serve. CESI helps consumers achieve financial freedom by offering a complete life cycle of services including: credit counseling, debt management, housing counseling, student loan solutions, financial education and pre/post-bankruptcy counseling. For more information, please visit cesisolutions.org.