topic Need Help (credit counseling? DMP?) in General Credit Topics

Need Help (credit counseling? DMP?)

Anonymous — Tue, 30 Sep 2008 16:09:07 GMT

Can someone please please give me some good advice. I am a single parent and just brought my daughter to college this Fall and am now swimming in Credit Card debt and don't know what to do. I am paying my Mortgage first- but my credit card comapnies don't care to help. I called the 3 cards I have and they said they do not assist customers having problems paying their bill. I take full responsibility- but being single I did not have enought money to get my daughter what she needed for college (computer, clothes, bedding, dorm stuff etc.) and am now having trouble. What is my best course of action? I do not want to file for bankruptcy (I am in about $20,000 worth of credit card debt)

I've heard of CCCS but do not know if they are a good option and there are tons of them when I google them and do not know which are legit if at all. Please advise.,,,

Single Parent struggling

edited to expand title, to help get more responses

Message Edited by haulingthescoreup on 09-30-2008 09:09 AM

Re: Need Help (credit counseling? DMP?)

haulingthescoreup — Tue, 30 Sep 2008 16:08:44 GMT

We have several members here who have successfully gone through credit counseling and debt management programs. I added a reference to these in your title; hope you don't mind.

While we wait for them to see this thread, you might want to read this article, which helps clarify what's what. Unfortunately, there are plenty of sharks out there, cruising the shallow waters:

Knee Deep in Debt (FTC article)

We also have a forum member who got badly burned by a debt negotiation program, as described towards the end of the article.

Re: Need Help (credit counseling? DMP?)

marty56 — Tue, 30 Sep 2008 17:22:50 GMT

I completed a DMP back in November. I took about 4 and half years. I do not know what my FICO scores were prior but I suspect they were in the 500's to low 600's. Since DMP I was able to get a prime Visa card and a prime auto loan.

A DMP program will close all your credit cards that you add to the program and consolidate your payments into one payment. Most of the time it will reduce your interest rates so you wind up paying back less in the long run but not necessarily lowering your total payment amount unless you want to pay over say 5 years instead of 2.

If you go the DMP route, try to keep 1 CC out of the program (your oldest and best account) but do not run up any more chargers on it that you can't PIF. If the balance goes to 0, use it once in awhile but PIF.

Stay away from the so-called debt settlement programs which offer to reduce the balance that you owe because it will hurt your credit.

DMP will not repair past problems on your credit other then brining your accounts current. Prior lates will still be on your credit report.

I sent you a PM about the company I used.

Re: Need Help (credit counseling? DMP?)

fishbjc — Tue, 30 Sep 2008 20:41:40 GMT

Like Marty, I have had success with a DMP. I'm 1/2 through the program, but have made excellent strides in paying extra, therefore, bringing the balance down.

The DMP I'm in requires 60 equal payments. If, for example, you pay off one small credit card through extra and direct payments, my payment to DMP does not shrink. They move that amount to the next card. For example:

B of A Signature Loan ~ 13% - $45.00 payment

B of A Credit Card ~ 4% - $165.00 payment.

I've almost got the sig. loan paid in full. That $45 will then be applied toward the cc portion, thus keeping the payments the same, but paying off the cc faster.

I pay my DMP about $15 monthly to handle the payments. It's my responsibility to check every creditor statement to make sure the payments are handled properly. There are no more o/l charges or late fees.

B of A did shut down my cards and I cannot apply for new credit without their approval. They do *monitor*. I have heard of someone being allowed to open a new card, but it was a gas card which was required for their job.

My credit scores have increased slowly, but surely. I'm very happy with my program.

I'm sure Marty will give you a recommendation, as will I. You can then call them both and discuss their program. I think it will be a load off of your shoulders!!!!!

Re: Need Help (credit counseling? DMP?)

Anonymous — Wed, 01 Oct 2008 04:32:42 GMT

Thank You so much for all who responded. There is nothing worse than not sleeping at night and being stressed out. I will contact the two DMP sites and see what they say. I'm a responsible parent- I just tried to do too much for my daughter I think- it's hard not to when they are your children and I'm a single parent and I'm trying to assist my daughter as much as I can- but being 50 I have to take care of myself now too- which is something I often do not do. Thanks so much to all~

Re: Need Help (credit counseling? DMP?)

fishbjc — Wed, 01 Oct 2008 17:52:54 GMT

You are MOST welcome!!!!

Re: Need Help (credit counseling? DMP?)

marty56 — Wed, 01 Oct 2008 18:02:01 GMT

Good luck and please post your progress.

Re: Need Help (credit counseling? DMP?)

Anonymous — Thu, 02 Oct 2008 16:10:39 GMT

I am desperately seeking a DMP I can trust. I see that you have recommended some for others. Can you please let me know which ones are legitimate. I am so stressed about this issue and need guidance from someone who has had similar experience. Thank you!!

Re: Need Help (credit counseling? DMP?)

Anonymous — Wed, 11 Feb 2009 22:13:43 GMT

Hi Marty -

I have a similiar situation. I am in around $35,000 debt and without ONE late payment. I was thinking of going your route. What are the do's and don'ts and what do I expect to get from this and how will it affect my FICO score of 685? Thanks!

Waiting to hear.

Re: Need Help (credit counseling? DMP?)

marty56 — Thu, 12 Feb 2009 12:32:15 GMT

I was not FICO aware when I started DMP but with one late payment, based on your current util, your scores would probably be in the range of what the simulator would indicate in paying down the debt and letting the accounts age. In other words the DMP will no affect your score recovery in the long run.

In terms Do's and Don'ts.

Leave your oldest and most usefull CC acount out of the program.

Double check each statement to make sure the DMP program is paying them on time. Also watch the balances since the DMP company deosnt know the eact balance once you start paying.

If you can, save enough money to make the minimum CC payments in case the DMP company pays them late. I had a problem towards the end of my DMP where due to the way they pay the CCCs, the payment was going to be latter than when Discover wanted to be paid.

Dont apply for new credit while you are in the program. That goes double if you have a BofA account in DMP.

If you have extra money, you can make payments to your CCCs yourself while in DMP.

Finally since DMP, I was able to get a prime Visa card and an autloan at the best rate my CU offered. While I dont know if any of my olde CCCs would balcklist me or not, I have no interest in going back to any of them for credit. The goes tripple for BofA.

Re: Need Help (credit counseling? DMP?)

Anonymous — Thu, 12 Feb 2009 16:30:19 GMT

Hi there,

For those of you that have completed or are in the process of completing a DMP, can you please send me info on the companies you've used? I am paranoid of choosing one that isn't legit.

Thanks!

Re: Need Help (credit counseling? DMP?)

fishbjc — Thu, 12 Feb 2009 17:27:32 GMT

I'll send you a pm of the service I used. I'm very happy with them.

You can try different programs, but the responsibility of success is on your shoulders. You have to keep at it month by month and review each and every statement to make sure things are on track.

Before calling the organization I'm giving you...be honest and write EVERYTHING down. Every expense including hair care, pet care, smoking products, etc. They can help you but you have to be honest with yourself.

If you do all of the above things...you will be successful in getting yourself out of debt on month at a time. I also pay extra each month to hurry things along.

PM is on the wayl

Re: Need Help (credit counseling? DMP?)

marty56 — Thu, 12 Feb 2009 17:42:31 GMT

I also sent you a PM.

Re: Need Help (credit counseling? DMP?)

Anonymous — Sun, 01 Mar 2009 16:36:23 GMT

Hi everyone,

I am desperate for information on a DMP program. For those of you that have completed or are in the process of completing a DMP, can you please send me info on the companies you've used? I am so scared of choosing one that isn't legit. Every time I make a decision, it's the wrong one!

Do I need to post my email address here? I am such a clueless newbie, I have no idea.

Please help!!!!!

Thanks!

Re: Need Help (credit counseling? DMP?)

haulingthescoreup — Sun, 01 Mar 2009 16:54:36 GMT

Please don't post your e-mail address here, or your real name, etc.

The members who can help you will pm you.

If you look at your screen, towards the upper right you'll see a picture of an envelope. If it's a strangely glowing orangey-gold, you have a pm in your inbox. Click on the envelope, and then click on the title (subject) of the pm to open it.

Good luck!

Re: Need Help (credit counseling? DMP?)

Fico_Dish — Mon, 22 Jun 2009 18:09:58 GMT

can somebody please send me the name and address of a reputable DMP company.

Re: Need Help (credit counseling? DMP?)

marty56 — Mon, 22 Jun 2009 20:43:27 GMT

I have sent PM's to those who asked for the DMP I used. I completed the program back in Dec of 07.

DMPs do work if you play by the rules and finish them.

Re: Need Help (credit counseling? DMP?)

Fico_Dish — Tue, 23 Jun 2009 20:47:03 GMT

marty: can u please pm me the name address phone or web address of your dmp please.

Re: Need Help (credit counseling? DMP?)

Fico_Dish — Tue, 23 Jun 2009 21:22:36 GMT

marty: thanks for the PM. I have gone through the website and got a lot of info. I have a few question, if you can please help me out here, it would be great:

is it necessary to include all the credit cards in the plan. or if we can chose the ones with higher debt or higher interest rates. ex. I have two Chase: one with a inerest rate of 4% on balance transfer for life of balance and the other card has a 24.99% balance. Can I just put the later one in the dmp.

I understand the using DMP affects the credit score. However, do you think it can affect in job searching etc.

What actually these programs do: do they lower the payment, lower the interest rate etc. I have several cards with balance transfer for the life of the balance at very low rates like 4 -6 %. Do you think it will be worth putting these cards in the program

Thanks a lot for your help in advance.

Re: Need Help (credit counseling? DMP?)

marty56 — Tue, 23 Jun 2009 22:09:22 GMT

You dont have to put all the cards into the program, infact you should keep your oldest and most usefull account out of the DMP. AE closed my Green card even though I didnt include it in DMP. They along with BofA suck.

I dont know my FICO score was before I tsarted the program but it will be higher when you finish. Pehaps much higher. IMHO no effect on a job serach since I work for the government and they didnt care.

IMHO 4 - 6% is probably better than the DMP but I would check since some CCCs might lower to 0.

These days I dont know if any of the cards you keep out of the program would UD or close the account when entering DMP, i they do you could add them to the plan after the fact.

Discover didnt lower the intrest rate (18%) on the account in DMP. JCP (didnt either) /

I have heard these days 10% is the average.