Hello everyone, I'm new here.

[Anonymous]

Bigray-

Unless you're the type of person that has trouble following through without someone there to manage your actions (which is fine, I'm not being condescending - my older bro is like that!) then this is really something you can set up yourself, without paying a DMP to do it for you. That's $$ out of your pocket that you don't have to spend.

I did this for myself a few years ago when I was in BIG trouble with my CC.

Call your CCs and just ask to speak to a credit specialist. Tell them you've heard about payoff programs where they will lock your account, lower your IR by a TON, and help you pay off your card before it goes to collections. Most all CCs offer this - you just have to know to ask for it. And, this is all the DMP would do, too. They will ask questios about your income & other bills you have to pay, freeze your card (it won't show as closed, though - yet) and set up a PP based on your income & new IR. I can almost guarantee you'll be required to set up autopayments in advance, usually 3-6 months of pmts at a time. I was able to go from 26% to 1%. Then, set up all those payments for at least $10 more than the min they've required. It will make you look better and more committed in their eyes.

 At the end of the payoff, they will most likely close your card, and you will be invited to re-apply. However, *sometimes* they will review your credit at the end of the payoff period and potentially reopen the account.

You must be very careful not to miss a single payment, no matter how valid the reason. Often you will be locked out of the payoff plan option permanently once you miss a payment. I missed one payment when we had moved overseas, even though I had given my new bank acc't info in PLENTY of time, they pulled off my old acc't instead of my new one. It took over a month and LOTS of conversations with supervisors to get it straightened out, and the ONLY reason I was allowed to restart the reduced rate payoff was because I could prove (and had to do it, like, three times to three separate managers) that the error was theirs, not mine.  Also, it will usually be your responsibility to set up the next group of 3-6 months of autopay -- they will not offer ANY reminder that you are on your last month of the payments you had set up, so it requires getting a spreadsheet and setting up reminders for yourself for when you need to set up the next group of payments. Again, if you miss a pmt because your autopays finished up and you forgot to renew, they will NOT accept an excuse of "you didn't send me a reminder notice!"

Another good thing is, if you do it direct with the CCs yourself, you won't have any notations of a DMP which could prevent you from qualifying for a mortgage later on!

I really encourage you to call your CCs yourself and see if you can accomplish the same thing without paying someone else to do it - as I did. However, as the others mentioned, don't do this for the card with the longest history, beacuse you stand to lose a good deal of your history at the end of it. I would just call and ask if you can have an IR reduction beacuse you're a darn good customer! Don't mention financial hardship, just mention how competitive IRs are becoming since the rate cuts!

Best of luck, and I hope you can do this yourself.. any $$ you pay out to the DMP for something you can achieve yourself (and I know, cuz I did it!) is money that could have gone towards reducing your debt faster!

[Anonymous]

Thanks for the advise....I just might do it.   Thank You for your Reply

More Advise Please   (Even if it's just to comment on someone else's comment.)

You Guy's and Gal's  are good people----I'm glad I found this Forum

[Anonymous]

     That is very good advice there, I would take that and see what I could do if I were you.  Call those CC's up immediately.

     Also check your living expenses and see what you can reduce, such as:  reduce/cut  cable, phone, eating out, buying drinks (very expensive), movies, ect.

     I know you cant cut everything but try to reduce, even if its using your ceiling fan instead of the a/c.

     Making one trip a week to shop instead of two saves lots of money these days. I actually only go twice a mth I make a very detailed list, which starts as soon as I get back from shopping.

                                           Best of Luck to you in which ever way you choose to go.  Vicki

Message Edited by greyhound2007 on 05-19-2008 10:55 AM

[BungalowMo]

---

Union Plus Visa -  $ 10,000    Minimum payment  $200

Union Plus MC - $1500               "                  "          $75

Citicard - $6000                          "                   "        $220

B of A- $2000                               "                    "          $75

and this one is stupid, I know,  Citifinancial (not a CC, a unsecured loan ) - $7300  with a monthly payment of $206.

---

Ok, just remember...if the oc's are willing to work with the counselor, they are willing to work with you.

Tell the creditors that you really want to work with THEM...not a counselor & not a collection agency.

It's sort of like all of us sending out those GW letters...nothing is guaranteed...except what will happen if you don't try.  All these folks you call have had their own worries with money & such.  They will be much more willing if you call them long before you get far behind & ready to go into collections.

You can always go with the counselor if yours calls don't work.  FWIW...I'm guessing the oc's will want to help .

Good luck & let us know how it goes...we'll be cheering you on!!!

Just a thought...maybe that "union Plus"  will allow you to make one sort of large payment & combine the 2. 

Message Edited by BungalowMo on 05-19-2008 02:11 PM

[demi]

With the amount of cards you have, you should be able to do without a DMP...I went that route because I was way over my head, and quite frankly, needed the discipline.  But, just to clarify, having the debt management plan on your credit report does not hurt your score..and I think it tells people you are trying to be responsible.  It will not prevent you from qualifying for a mortgage...I just was approved, and needed no explanation, other than I had fewer then 10 payments left.

[Anonymous]

demi -

for certain mortgage programs, it will disqualify you if you have had a DMP within 12 months.

[Anonymous]

Like I said before.....I'm glad I found this forum. I truly appreciate all you guy's (and gal's LOL).

Making a budget isn't a problem...not that i've made one before....just wasn't motivated...until now.

I just hope the CCC's will work with me, like I said, I thought they want to keep you paying forever. I WILL Try to call them..you guy's gave me strength, I appreciate it.

For months I have lost sleep, couldn't eat, cause I feel I let my family down  (they don't know why  "I've been different" )

But you guy's have shown me maybe there is a light at the end the tunnel. Thank You.

Any more advice, will be appreciated. Thank You ALL

Message Edited by Bigraydaddy1 on 05-19-2008 02:06 PM

Message Edited by Bigraydaddy1 on 05-19-2008 02:06 PM

[demi]

Ivy - I have never heard that before, interesting, wonder which programs.  It wasn't even an issue for mine (FHA) or the original I applied for (conventional).  Maybe because I was so close to pay off.  But, there have been several discussions on the board about it does to your score, and my understanding is nothing, but you do have to be diligint and make sure everything is being paid.

Not necessarily advocating the DMP, mine was great for me...but I had a whole lot more accounts than 4.  But with 4 accounts, if you are disciplined, you can probably do even better yourself.

Message Edited by demi on 05-19-2008 02:34 PM

[Anonymous]

Bigray-

the best thing you can do along the way, is TALK to your family. Even if it's only to give them a very brief overview of why you've been "different", it will help tremendously! You will feel so much better just knowing that someone else KNOWS. And they will be much  more able to understand your moods, and support you in those moods, if they know the reason for the moods.

[Anonymous]

    Another good reason to talk to your family is so they know money will be tight while paying these accounts off.

     They probably will be willing to help, maybe they have some ways to cut back for a while.  Vicki