💚 Debt Management

Escaping the Debt Rollover Trap: Extended Payment Plans & Debt Resolution

By Consumer Emergency Aid & Credit Literacy Board

Executive Summary & Key Takeaways

Strategies for breaking compound debt cycles: CFSA Extended Payment Plans (EPPs), ACH revocation rights, and certified credit counseling programs.

When borrowers cannot repay a short-term advance upon maturity, rolling over the balance triggers exponential fee growth without lowering principal.

1. Actionable Debt Resolution Protocols

  • Requesting an Extended Payment Plan (EPP): Under trade association guidelines, eligible borrowers can convert single-payment advances into 4 equal installments with zero additional fees.
  • Revoking Automated ACH Debits: Submitting written notice to your bank and lender stopping automated electronic debits prevents recurring overdraft charges.
  • Nonprofit Credit Counseling: Working with NFCC-certified agencies to establish structured Debt Management Plans (DMPs) that lower interest rates.
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Consumer Emergency Aid & Credit Literacy Board

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