DEBATING BETWEEN CREDIT COUNSELING & DEBT MANAGEMENT PROGRAM

[Anonymous]

All,

Looking for some advice regarding credit counseling & Debt management Program.  I am presently facing some serious financial difficulties and want to hear from someone who has done either of the above programs.  I dont want to trash my credit by filing for bankruptcy or doing debt settlements as I can still pay my debt just not on the current rates my creditors are charging me 28.99%, 29.99%,24.00%  I have fallen behind on my payments for the first time in years and I have a debt I am trying to settle with IRS.  Hence, the root of my problems, not being able to pay the IRS and my creditors.  My credit score has dropped about 100 + points to 558.

I need to know which of the above will hurt my credit the least.   

[marty56]

Jen,  welcome to the forum.  I graduated DMP back in November and I am doing great with my credit now.

Sonce DMP I got a p[rime Visa card and a prime autoloan.  DMP had no negative effect on my scores or credit infact once my accounts were all PIF my scores recovered.  Forced me to make and keep a budget which I still use.

Only issue with DMP is that they will close all the accounts so you may take a score hit on that but it will recover,  Also if you can, keep your oldest/best account out of the program.

 I sent you a PM with more info.

[Anonymous]

Thanks soo much Marty!!! Really appreciate it

[Anonymous]

I am looking for  a dmp that is reputable.  Does anyone have any suggestions?

[Anonymous]

www.nfcc.org  800-388-2227

[Anonymous]

thank you.   has anyone heard of progressive relief

[Querida]

Money Management International (MMI) used to be known as Consumer Credit Counseling is a good one. They negotiated the interest on my credit cards from 23.9 to 8.2 % which helped me pay more on the principal balance. The credit cards had been closed ( which is a requirement of the program when you enroll) but two months after the debts were paid, both credit card companies reopened new accounts with $2000.00 CL each.

Good Luck!

[Anonymous]

I am currently enrolled with CareOne debt management program and am very happy with them.  They even give you the option (not sure if others do because this is the only one I have ever dealt with) of paying extra on certain accounts.  The hardest part (I think) is waiting on the creditors to accept or reject the proposal.  You are right not to do a debt settlement as you will read on this forum.  The nice thing about DMP is that you are still paying back everything you owe.

[Anonymous]

How has a ccc or dmp effected your credit?