DMP Problem- helpful to others and looking for some help myself or advice.

[uktaurusbulba]

I tried to use NFCC for my DMP and I had a meeting today: Here are some things I learned. 1. I am current on my cards, so credit cards will most likely give me a higher rate on a dmp. The nice lady that helped me told me that Bank of Americais flexible on there rates, going from like 1%-16% but that I may fall in the 16% zone. 2. The problem with the latter is that you give up your cards before you go into dmp so you may be only saving like 8% or so but give up your access to credit. 3. Discover will only DMP at 16% 4. People with late payments or missed payments are more likely to receive more favorable rates. 5. If i let my cards go and dont make any payments, I am more likely to receive favorable terms and the lates will be removed after 3 months of solid payments. 6. Sounds pretty messed up and I am confused as to which direction to pursue. I have about 58k in unsecured debt. I have a business, which is making me enough money to live and service the debt but thats it. Im not sure what I should do. Tough times.

[bamagirl1]

i'm new i caught on to some abbrevations but what's dmp?

[uktaurusbulba]

DMP is a debt management program. It is a program that people with too much debt may go into to receive lower rates, but you lose access to your cards forever. I was contemplating going into it until I heard that the rates I get may not wind up saving me much after all at the expense of losing credit cards. Not sure what to do at this point.

[demi]

I am almost done with a debt management plan (takechargeamerica)...I was in trouble before I went, had many lates, etc...but fairly caught up.  It saved me substantial money (and stress).  Yes, I gave up all credit cards, and I think pretty much all of them require it.  But, not forever...just while you are in the plan.  Its the smartest thing I could have done.

In your situation, if you have maintained good credit, is it possible just to get some type of consolidation loan ?  I really didn't have any assets....a 14 year old car and no house, so it wasn't an option for me.

[SmartCookie]

Wait for Timothy to come around.  He did a 50k paydown in under a year with no DMP.  I'm sure he'll have some good advice and encouragement from his experience.

To close your cards would obviously not be a good thing.  Can you get some sort of debt consolidation loan or borrow against something? 

[uktaurusbulba]

Guys, The problem is I dont really have any collateral at this point. Its kind of a messed up situation because if I could just power them down 50 %, I could prolly use balance transfers to consolidate it all at a favorable rate somewhere around 5-8%. Instead, I am paying in the vacinity of 22%. It sucks because Im not seeing the progress that I need. I dont have a problem going into dmp, but I want much lower rates, not 16%. Why do it? I may as well just suck it up and do it myself. I thought that I could get like a 4-7% rate doing that. So thats where I stand with things now. Like I said, I am making the payments and living but thats it. Its a struggle and I cant really have a life like I want. I have like a 15 year credit history and about 60k in unsecured credit. But I got myself in a hole and now I kinda just want to be able to operate my business a lil more freely without feeling so burdened.

[Anonymous]

Message Edited by esshua on 02-06-2008 07:54 PM

[uktaurusbulba]

The lady that was helping me with my dmp said that rates couldnt be negotiated. And that discover only did it at 17% and BOA between 1-17%. She was submitting the proposal like that and thats when I second guessed and she told me I wouldnt be able to see the rate offered before entering the program. From what you said, it sounds completely different. Am I missing something? Thanks, Rob

[marty56]

5. If i let my cards go and dont make any payments, I am more likely to receive favorable terms and the lates will be removed after 3 months of solid payments.

Not Likely.  I just graduated in November and the only late info on my CR was when BofA dropped me from the program 2 years ago and then they added me back.  Lates still are on CR.

[marty56]

If you are just looking to go the DMP route to get lower interest rates then dont.  Also a lot of what that nice lady told you about DMP is wrong.  BofA is the worst of any CCC in a DMP program.  most CC where at 9-10%.

 Not paying your CC bills on time to get a lower interest rate sounds more like the people who say you can settle your debt for less then you owe.

See what Harbor Credit can do for you.