Credit Card Center Advertiser Disclosure

New Member
Posts: 12
Registered: ‎05-09-2009

Debt Consolidation

I work as a collector and everyday I talk to cardholders that refuse to pay us because they claim they are in debt management. While in theory debt management is a great idea and would help anyone in dier straights, it slaughters your credit. If you are thinking about joining debt can, call your creditors first. We have many plans that will help you get caught up on your card and lower your payments. Debt management, while they tell you they will submit proposal, and sometimes do, it takes upward of 3 months to get the account set up. Even then, the only thing they do is set you up on a plan which you could have done yourself and saved yourself from paying a middle man. Most times they will not even foward your payments on to us, and settle on your account so they can make even more money off of you. They can do this legally without your permission when you sign up with them.


Hope this helps anyone who is thinking about debt management or knows anyone who is thinking about it!!

Moderator Emerita
Posts: 28,095
Registered: ‎04-01-2007
0 Kudos

Re: Debt Consolidation

We always recommend that members who are considering DMP stay on top of their payment schedules, rearranging due dates when needed, and be prepared to pay for a while. We have a member who never had lates until their DMP missed some. Smiley Mad

We also recommend strongly that people stay away from debt negotiation programs, which are truly score-killers.

And I always recommend that members check the FTC article linked in my siggy.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.