DMP any advice?

[TrinaGwyn]

I've searched in this forum and haven't found anything relatively newer about a Debt Management Plan program.  Long story short, I had some medical complications and have battled with my PTSD for many years, which lead me to the situation I am in now.  I'm embarassed to even admit this, but I have $99,000 in unsecure debt, and totally take ownership of that.  In the last year, I have done the snowball affect which has worked (glad to say, I have paid off cards this way), but my APR on some of my cards are higher it doesnt make a dent.  I've also taken a look at my lifestyle and have cut out things I don't need or dont miss.  I'm current on all of my loans/credit cards, but am close to deferring my student loans bc of the mess I made.  I have been working with a DMP company who proposed this for me:

1. One month payment $1980 with a fee of $55 a month added for their assistance.

2.  61 Month payoff with most of my credit cards APR dropping to 0-9 percent on all of them.

3.  After I pay my mortgage, car payment, and utilities I have about 300 a paycheck left over.

I have read and re-read the fine print, and do understand this is a DMP and not a debt settlement. 

Any advice?  Am I dumb for this?

[Anonymous]

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@TrinaGwyn wrote:

I've searched in this forum and haven't found anything relatively newer about a Debt Management Plan program.  Long story short, I had some medical complications and have battled with my PTSD for many years, which lead me to the situation I am in now.  I'm embarassed to even admit this, but I have $99,000 in unsecure debt, and totally take ownership of that.  In the last year, I have done the snowball affect which has worked (glad to say, I have paid off cards this way), but my APR on some of my cards are higher it doesnt make a dent.  I've also taken a look at my lifestyle and have cut out things I don't need or dont miss.  I'm current on all of my loans/credit cards, but am close to deferring my student loans bc of the mess I made.  I have been working with a DMP company who proposed this for me:

1. One month payment $1980 with a fee of $55 a month added for their assistance.

2.  61 Month payoff with most of my credit cards APR dropping to 0-9 percent on all of them.

3.  After I pay my mortgage, car payment, and utilities I have about 300 a paycheck left over.

I have read and re-read the fine print, and do understand this is a DMP and not a debt settlement. 

Any advice?  Am I dumb for this?

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Do you get paid every week or every two weeks? $300/week might be doable . . $300 leftover every two weeks doesn't seem reasonable to me.

You'll be able to get a lot more feedback if you list your income, expenses and all of the balances and interest rates of your debts.  

Also, what are your credit scores?

[Anonymous]

Do you mean $300/pay to buy groceries, gas, clothing, household items, personal care, doctor/therapist visits and medications, set aside for in case your car needs repair, etc.....? That's not doable LT on a biweekly basis. (even weekly would be a stretch.)

I can tell you because I had to survive through it for a little while - at various points even - through this year, at the beginning when I was insolvent and saving up for BK, and then when I was going through a 6-week medical program that also required significant transportation expenses. I at least had a "lift" to look forward to each time. I don't think 5 years, without ANY break, is doable. :-\

If you mean that all of those things listed above ^^^ are included when you say "utilities" and the $300 leftover is really just for miscellaneous stuff (like aforementioned car repairs, or dining out or buying a CD or whatever... do people still buy CDs?) then it might be more tenable. 

Try to remember that you have to live for the entire 5 years, and life happens. If it were one year, you might squeak by with belt-tightening and extra care and luck (nothing happening to house/car/body/brain) but 5 years is a good bit of time.

I don't mean to sound discouraging. You may be able to do it! (I have faith in you!) I just might add plotting out a careful budget for yourself to your to-do list before signing.

You could go to another credit counseling agency for a second opinion if you would like. You might receive different terms. Maybe not necessarily better or worse.

p.s. since you mention medical issues and PTSD, I will put this here: please do not cut out or cut down your medical/MH care during this time. It is as necessary as your rent/mortgage. I don't even care if someone here would tell you to do it. As you (&I) have found out, when it is not well treated, your financial situation gets worse. 

Best of luck.

[TrinaGwyn]

I do mean "play" money, so it would be after all that monthly stuff has been paid.  I'm actually going to get a bump in raise about 300 a month come March 2018, and then I believe I will also have someone moving in by May 2018.  I've looked this all over, and as much as I want to move forward my guts tell me no at the moment.  I think I'll re-evaluate and wait tell March to decide what to do.  Ill keep plugging away at the snowball effect and hope for the best! 

I don't ever fight my medical, physical, and medication needs.  I get some of it from the VA, and some of it I pay with my health insurance.  I know I am in this mess bc of my PTSD, but I refuse to let it win.  I adapt and overcome all the time, and this will just be another moment that I do that.

Thanks for you time and attention, Respectfully.

[mattmyFIC0]

I’ve done a DMP and they do work. I wish that I had tried to negotiate with my creditors myself first though. The monthly fee sucks and you might be able to do better yourself if you call your creditors up. 

No no matter what you do you have to try and get the interest rates lowered so you can make a bigger dent in the principle. Good luck!