Debt Management Plans through NFCC

[Anonymous]

Anyone have experience with DMP's?

They close your cards, which is fine with me.  But here are my questions:

When the cards are closed through NFCC, doesn't you FICO score dramatically drop?

 How do employers look at DMP's?

Thanks for your answers in advance.

[marty56]

I finished my DMP last November.  At the time I started it, I dont know what my FICO scores where but they must have been very low since all my cards were maxed out.  Towards the end of the DMP, I found this forum and started checking my FICO scores and they were in the high 600's low 700's.

My scores should be over 800 except for the fact I aquired a 120 day late 3 years ago while in DMP by BofA kicking me out of the program after I got a Sams card and changining the minimum payment.

Being in DMP had no affect on my job but if I did a BK, it probably would.  Since DMP, I was able to get a prime rate autoloan and Visa card.

I dont know about the initial affect on your FICO score by going into the program but since your score is dominated by being max out, by the time you finish the program, you will be better off then where you were before with no lasting effects of being in DMP.

You dont have to put all your CC cards into the program.  I left my gas card out of it which happend to be a very smart move (unknownigly) by me since it one of my oldest accounts.

Yes some people here will say that DMPs dont do anything for you that you cant do for your self (other lower interest payments).  At the time, I didnt have thr discipline to do it myself and stick with it so I went cold turkey if you will.  I have no CC debt now other then small amounts I allow to report sto keep building my FICO scores and I always PIF.  In 3 to 4 years I will be in the 800 club when the 120 day late falls off my account.

If you go the DMP route, make sure it is NOT is Debt Settlement program where the lower what you actually owe.  that WILL trash your credit and they company will probably rip you off in the bargin.

Message Edited by marty56 on 11-18-2008 09:34 AM

[JayBeast]

I can't agree with Marty any more.

As far as employment goes, it depends on what type of job you're looking for.  The only area I really see that would be of concern is if you're in the financial services industry as they may question your financial responsability.  Personally, I think entering a plan is much more responsible than letting your debts go delinquent.

I think most companies are looking for something that would possibly tip them off to someone who would have an incentive to steal.

I manage a hotel for a large company and my DMP has never been a problem for my employer.