debt management programs

[Anonymous]

Due to medical reasons,I might have to enter into a debt management program. I was told by the debt management company that my score would not be affected by entering into such a program. Any information would be appreciated. 

[Anonymous]

This, from www.bankrate.com:

Signing on for a debt-management plan may give you more breathing room in your monthly budget, but will it hurt your credit? Not as much as you may think.

Using a debt-management plan to pay off debt won't hurt your credit score, but it may make it difficult to qualify for new credit.

[headspin]

Be careful with these programs, I'm not speaking from experience but only from what I have read on this forum, some debt management programs are scams and can hurt more than help.  Make sure you do your research on the company before letting them handle your debts.

[Tuscani]

http://www.nfcc.org/

[sl]

I just finished a DMP and had good luck with it.  The only cc that showed I was in a dmp was AMEX and it took a good 6-8 months to get that off my cr.

If you are serious about going into, send me a PM and I will give you the name of the one I used and a good contact.

[Anonymous]

I just finished my DMP with CareOne (http://careonecredit.com/) and they were awesome. This didn't hurt my score at all - only helped it. It helped me to be responsible and monitor and repair my credit. Also, nothing showed up on my report because of it!

[Anonymous]

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jessicaldale wrote:
I just finished my DMP with CareOne (http://careonecredit.com/) and they were awesome. This didn't hurt my score at all - only helped it. It helped me to be responsible and monitor and repair my credit. Also, nothing showed up on my report because of it!

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Jessica-

May I ask what they charged you? And were you forced to close your cc accounts?

Thanks!

Tex

[Anonymous]

you use debt management programs and some ( shady ones ) can ruin your credit. Be careful selecting them. Get references and use national companies.

good luck.

[Pants]

I have been on a DMP now for about 8 or 9 months. I am having good results.

Be careful who you decide to go with. Some of them ARE scams. Call around several places and see what they think they can do for you. AND check with www.ripoffreport.com or The Better Business Bureau before you sign up.

As for a DMP ruining your score? If you already have several lates and your score is already slipping. It probably it can't hurt more than what you have now.

It depends on each individual credit card company what they do when you are on the DMP.

When you sign up with a DMP. Some of the card companies want to make sure you are sincere making your payments. When you first start the program they will report you late until they receive three consecutive payments from you. After the 3rd payment they will usually readjust and make your late status current. Some card companies will even go back and erase those three late payments from your credit report after they receive the 3rd payment. Some won't.

If you have an account from a card company that won't erase the late payments then your score can be impacted. That is the only time your score can suffer from a DMP.

My score took a quick drop when I started the program (upper 400's) then after the 4th month my score quickly jumped to the mid 500's.

A DMP isn't for everyone. A good DMP organization should have a lengthy discussion with you on your budget, your bills, and see if you are fit for the program. You should not be enrolled in a DMP if you have sufficient income to pay the debts off yourself. And you should not be enrolled in a program if you can't afford the DMP payment. A lot of DMP programs are accepting everyone that calls them up. If you want to e-mail me. I can give you some contact information which DMP program I am on.

Message Edited by Pants on 08-31-2007 04:41 PM

[sl]

I used Debt Guru and they are based in Utah.  I paid $30.00 month for 4 accounts and the accounts had to be closed when entering it.  However, you can keep the cards open you do not put in DMP.  They advise to leave a cc out for emergency purposes.

Google them and read more.  I was very impressed with them and never paid late and always took my calls when I called in.