Fixed Payment Program/DMP Questions

[Jillybean]

I've done a lot of learning about my FICO and credit scores and am trying to turn a new leaf.  With that said, I have $10k in debt with Bank of America.  I can currently make my minimum payments, but not too much more than that.  My interest rate is now 27% due to a late payment (by a mere 3 days) in January. 

So the questions are:

• Is it better to settle directly with BOA and enter their fixed payment program?
• Or is it better to work with a DMP like NFCC?
• Or is it better to just keep trying to pay off the balance without either?
• Either way, how will this impact my FICO score?  I figure it will be negative, but by how much?

Any direction would be helpful as I try to turn this around.  I really want to resolve this, but I'm not sure what the best path is in the long-term.  Thanks.

[fishbjc]

Hi Jilly!  I'm current in a DMP for BofA.  They reduced my interest to 4% on the cc and 13% on the signature loan.  There isn't a reason you can't negotiate with BofA for yourself.  If they've offered you a lower rate, accept it.  They'll probably close your account, but the huge savings in interest will make it worthwhile.

Fico doesn't really care if you enter a DMP, there shouldn't be a score change.  Keep calling BofA until you come to an agreement on the interest.  Make additional payments when you can to get that balance down.

BofA has a company that they recommended to me.  They charge $15/monthly to handle the account.  If this is your ONLY cc, work it with BofA.  I've just hit my 3 year mark and have paid quite a bit additinal off, so I should be six months ahead of the game or nine months if I keep at it.  Good Luck & let me know if you need anything further.

[marty56]

I finsihed DMP in DECc, 07.  Do not apply for any new credit while in DMP since BofA will drop you from the program.  That goes if you use BofA o ot but have a BofA product in DMP.

Since DMP, I got a prime Visa card and autoloan.  DMP programs work and they do not impact your credit once the balances are paid off.