Debt management program vs. doing it myself - HELP!

[Anonymous]

I would like some advice regarding by credit issues. 

I currently owe about $7,000.  They are all collection accounts (mostly medical bills, and a couple of old, charged-off credit cards).  The good news is, I just paid off my car loan this month and I have one unsecured credit card that I paid off this month as well.  However, I would like to get started on reducing this $7,000 debt because my credit scores are horrible . . . low, low 500s.

I am considering a debt management program, but have read mixed reviews about them on the message boards.  The reason I don't want to tackle this debt alone is because there are so many small bills ($300-600 range) that make up this $7,000 and I don't think I can keep them all straight.  Some of the collections have been sold repeatedly & I don't know who I owe at this point.

So . . . I'm just looking for a little bit of direction.  Does anyone have any advice on how I should proceed or has anyone used a DMP that works (and isn't a scam)?  I would appreciate any insight that you may have.

Thanks!

[demi]

Mine worked great, and others will chirp in.  However, the only thing I had in collections I paid off separately. 

[Anonymous]

With so many small bills, it might be beneficial to make an excel spreadsheet to track the information.  You will need to DV each collection company, to make sure that when you do pay, you are paying the correct company for the debt.

To help boost your credit score, a little here and a little there, keep using your credit card and paying it off in full.  Just do small charges.

Let us know how things progress! 

[Anonymous]

What does DV'ing each collection do?

[Anonymous]

First you need to separate the medical from other collections. Paid medical must be deleted from your CR.

What collections do you have the are within SOL and past SOL?

Use the HIPAA process on medical collections!!  Never talk to or contact a CA on a medical collections!!

http://ficoforums.myfico.com/fico/board/message?board.id=rebuildingcredit&thread.id=27537

When filing a dispute with the CRAs on medical, the color of paper matters. If you do not have the correct color then hand write it.

All medical collections (even with the same OC) must be written on separate paper.

You can do it yourself. Just take 1 at a time and ask questions.

Message Edited by HappyDays on 02-24-2009 02:09 PM

[marty56]

My DMP program worked but I had 10 times the debt your have.  IMHO 7k is a little low for a DMP.  I would use the DMP methods for payind down debt and do it yourself.

[Anonymous]

Again, make a master list of all the debt.  This will help you become better organized, and we can tackle the challenge of taking care of the bills.

In your list...

1.   Name of original creditor.

2.   Name of collection agency, if there is that is trying to collect.

3.   Date of last payment made.

4.   How much is owed.

5.   Type of debt -- is it credit card debt, medical debt, personal loan debt?

Medical debt is dealt with differently than regular debt.

My suggestion is to stay away from a debt management program at this time.  They would ask you for most of the information we are asking for...

Let's see if we can do this one on our own!  If it's too much for you, then you will be organized when you go talk to a DMP. 

[Junejer]

Are you talking about a debt management program or debt settlement program, which will settle the debts for a percentage of what's owed? I didn't think that a true DMP would take a case with just collections in it. I thought that was for CCs.

[Anonymous]

Okay, I'm pulling all of my credit reports this week and will compile a spreadsheet. 

Am I understanding correctly that medical collections have to be removed once they are paid?  If this is true, shouldn't I start paying those off first?

I'll get back to you as soon as I get all of my stuff organized.

Thanks so much for your help.

[Anonymous]

The medical collections do have to come off once they are paid in full...

Let's look at the big picture first!