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Trying to decide whether bankruptcy or DMP is the better way to go

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bstone
Frequent Contributor

Re: Trying to decide whether bankruptcy or DMP is the better way to go

http://www.greenpath.com/resources-tools/faq

There is a specific FAQ which states all cards in the program must be closed. So I guess you could keep the cards you want to save out of the program, but that's defeating the purpose of lowering your payment.

Plus, you realize they are charging you up to $75/mo for their services, right? Take the $9000 in tuition and the nearly $1000 in fees you save not using a DMP, plus your normal payments and you'll be paid off in two years. All without hurting your credit with a BK or having to close any cards (although closing some may not be a bad idea to avoid this in the future).
NFCU Rewards - $18,000, NFCU Signature - $18,000, NFCU LOC - $15,000, Care Credit - $7,700, Lowe's - $6,400, Capital One QS - $5,000, Walmart - $5,000, Amazon - $4,000
Message 11 of 12
bstone
Frequent Contributor

Re: Trying to decide whether bankruptcy or DMP is the better way to go

I think you need to get a Dave Ramsey book (or Financial Peace Univ) and follow the debt snowball. I think if you start with Chase Freedom, pay it off, then move to Amex, and continue upwards you'll start making quick headway and will feel better. A lot of your stress is the overwhelmed feeling, but if you start to pay off cards relatively quickly (even if they are the small ones) psychologically you'll feel better and will be motivated to stick with it.

I'm also not sure BK is a viable option as the trustee may see private school as a luxury and make you use that money to pay creditors anyway. So now you've filed BK, destroyed your credit, burnt bridges with creditors who may never let you back in and your kids still aren't in private school. Oh, not to mention the cost to file BK is around $2000.

Good luck!
NFCU Rewards - $18,000, NFCU Signature - $18,000, NFCU LOC - $15,000, Care Credit - $7,700, Lowe's - $6,400, Capital One QS - $5,000, Walmart - $5,000, Amazon - $4,000
Message 12 of 12
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