DMP questions

[kd529]

I have about $80k in credit card debt. My scores are dropping daily as credit cards are starting to report late payments. My income is good but my husband is in school part time and is only working part time.  My salary barely covers our expenses before debt. I am consider BK & DMP.  I fear BK will require repayment of all debt so it would be pointless. I fear the lasting mark of BK. By the summer some of our expense lighten greatly, allowing repayment of our debt. My questions on DMP are 1) that does the interest cease or reduce to something very low; 2) how does it look on credit when you are finished. years ago before we bought our house, my husband entered into a dmp. mortgage broker said it looks worse than a BK. he quit it so we could get our house and it was as if he never was on. 3) if you dont finish the program and stop, how is that reported? for example, suppose i get to a point i can just repay it on my own, will it show i was every in a dmp? 4) i have some loans in a zero percent interest period, how does a dmp treat those? will i be forced into paying interest, as if i defaulted on it?

[marty56]

I finished a DMP in 12/2007.

Answer to your qeustions

1.  Yes.  Some went to 0, others went to 10%.  Keep in mind that the program is designed for 3 to 5 years so it is possible your payment to the DMP will be more than paying just the minimum on your cards.

2.  TL of the accounts might show that the account was managed by a CCS.  Broker is lying and or supid.  Since being in DMP I got a prime Visa card and autoloan.  I have not heard of any creditor dening credit becuase someone was in a DMP and that was the only reason.  I suppose that CCCs might deny you if you had one of their products in DMP but I dont care since there is awlay an alternative.

3.  I dont know.  I will assume the TL isnt changed.

4.  You can leave accounts out of DMP so I would leave those at 0% out.

I not a BK expert but I thought BK reduces or eliminates they CC balances all togther.