DMP or Do It On Our Own?

[Anonymous]

My husband and I are looking at buying a house...well, we are kind of being forced into it. We are renting right now but the landlord wants to sell the house we are in. There isn't another person on the planet who will rent to us with our 5 dogs, so buying is the only option.

Our credit is pretty bad. We have been married under 2 years and have struggled with who makes what payments and so on. That has not helped our credit and we do have recent collections on things like medical, student loans, and a cc. Before all that, he had next to no credit, and I had a terrible credit record all together.

We are considering two options, the first being to go to CCCS and start a DMP, the second is following a friend's advice, and call their broker and see what he says. They say he will look at everything and tell us what to fix first and so on.

I am researching the DMP and seeing such conflicting opinions I'm not sure if I want to do it. With my luck I would end up being one of the people who go though hell and back because of the DMP. And I'm worried that if we do the DMP it will take too long and we will have to find foster homes for our fury kids.

Any advice is welcome!

Thanks!

[marty56]

I was in a DMP from April 2003 thru November 2007.  Since DMP I got a prime Visa card (National City) and a new car loan at the best rate my CU was giving.

As far as I know, there has been no direct affect on my FICO score and ability to get credit since being in DMP.  I am assuming that I cant get a CC from any company that I had a product in the DMP program but that is okay since there are always places to get a CC from/

Things I learned.

1.  All your CCC acounts will prbably get closed so keep your oldest CCC account out of DMP.

2.  Dont get new credit while in DMP.  I got a mortgage while in it but a Sams card caused BofA to dump me from the program

3.  You must monitor your CC statements and be ready to pay a CCC if it looks like the DMP file pay them late.  That happend to me twice where I had to pay but it wasnt late.

4.  DMP company doesn't get your CC statements so they dont know how much there is left to pay.  They have an idea but it is not exact.  The last thing you want is a late payment on your last payment because they paid $5.00 and it should have been $5.01.

Yes you can do it on your own but you cant get the interest rate reduction and some of the other benefits of being in the program.  Also it wont fix lates and collections that are allready on your account and you have to pay the correct amount each and every month while in DMP.  Never late.

If it wasnt for me getting the Sams card while in DMP, all my scores would be over 800 right now less the 1 year out of DMP.  Prior to DMP my scores were bad because of util but no lates collections.  I dont remember what my scores were back then but I know they were below 600.

You will read posts from people here for or against DMP but  keep in mind that I completed the program, well on my way to being a good credit risk, and was able to get credit after DMP.  It worked for me.

[gdtobefree]

My suggestion, contact that person and let him tell you what most lenders will conditon to be paid before you close.

The medical bills I doubt will be conditioned, the others may,

DMP can hurt you at times, IN THE LONG RUN, it will help and I mean in the LONG RUN years down the road, not right now.

If you enter a DMP they WILL NOT leave any room for a new mortgage payment, they will concentrate on the things you owe TODAY and take your current income and devote it to that.

They will also advise you NOT to apply for ANYTHING until you are done with the program.

I understand about the animals, I have 2 cats and 2 ferrets and the deposits on EACH pet is about 400 around here, like I have an extra 1600.00 on top of deposit and 1st months rent.

[fused]

DIY!