WEST PALM BEACH, Fla. — Credit Union Journal is partnering with the American Debt Relief Challenge, a credit union-backed effort to save 37,500 consumers more than $300-million.
The program's goal is to encourage consumers to transfer balances from high-rate credit cards to lower-rate cards offered by credit unions, which will function to not just save consumers money but to generate additional income for the credit union, as well. American Debt Relief Challenge estimates the average consumer could save $200 a month in interest charges and fees by making such a transfer, a considerable sum for many people.
To highlight the money consumers could be saving, American Debt Relief Challenge has created a number of online tools that show how much the individual credit union is savings its members, and how much is being saved nationally. Credit Union Journal will feature on its highly-trafficked website a national ticker updating savings to date.
Participating credit unions are also provided with advertising materials, public relations support, a branded ADRC credit card switch kit, a web seminar for training, and more.
The concept was co-founded by Jamie Chase of Credit Union Strategic Planning, Seattle, and Scott Butterfield of the Paragon Group, Olympia, Wash. Also involved is Jason Green of Code Green. American Debt Relief Challenge has formed a partnership with Filene Fellow Dr. Robert Manning, author of Credit Card Nation, who will talk to the national media about the goal of saving consumers money on their credit cards and reducing debt.
ADRC said the partnership with Manning also connects it to his "Responsible Debt Relief Algorithm," which seeks to ensure that consumers likely to default on their loan are not transferred into the credit union.
"At its roots the program is about measuring and putting the spotlight on credit union service," said Butterfield. "It quickly developed into a highly logical, comprehensive toolbox that has everything a credit union needs to increase service and net revenue by a simple flip of a switch."
Chase reported that one small credit union in Washington State had already seen approximately $2 million in balance transfers before the program was publicly announced.
The American Debt Relief Challenge is giving participation away for free to all credit unions under $25 million in assets. All other credit unions pay $500 to participate or an additional $1,500 for a full advertising campaign. Credit union leagues are also being given media relations' materials and all savings data to share with their major daily newspapers in their markets and their sate and federal elected officials.
For more info:
