I'm not a bad person; I have bad credit!!!

[Anonymous]

Thanks so much for your suggestion.  I never thought about attacking the problem like this but I really think it could work for me.  It may take a few years in the dog house but I really think I can do it this way.  Thanks so much.

[Anonymous]

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tallygirl33 wrote:

I saw your message and I had a question.  I was thinking about going with a debt settlement company.  What have you heard about them?  I've went to CCCS and their DMP was too high for me.  What companies do you recommend?  Thanks.

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I cannot emphasize this enough. Do NOT use CCCS or any DMP company. Best case scenario, they will charge you a ridiculous sum of money to do things you can do yourself. Worst case scenario, believe it or not, they will make your credit even worse. Yes, it can almost always get worse.

[Anonymous]

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tallygirl33 wrote:

I never thought about attacking the problem like this but I really think it could work for me.  It may take a few years in the dog house but I really think I can do it this way.

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Couple of things to consider starting out.

1) You do NOT have to accept abuse or harassment from CAs. FDCPA and FCRA laws are there to protect you. Just because you owe someone money doesn't mean they don't have to follow the law. If they violate the law, you can sue them. It's not as daunting as it sounds. Sometimes the mere threat of a lawsuit is enough to encourage good behavior. If you feel you're being abused and harassed, there are steps you can take.

Some might scoff thinking some perverted line of reasoning that one is simply "using the law" to get outta paying debts one owes. Not true. The hammer of the law in civil matters come down as the award of monetary damages. If this were Singapore, collectors who violated the law might get caned in public. It doesn't change the fact that you owe someone money, but if they violate the law then they end up owing you money. You can now negotiate from a position of strength and get PFDs, and the money might end up as offsetting debits and credits. If they are particularly egregious violators, you can profit from their ill deeds.

Heh, if the collector or creditor wanted to get paid in full, offer you NOTHING in return, sue you and get a judgment, garnish your wages, they could do it. They chose to violate the law.

2) Just because you owe someone money doesn't mean you have to accept the worst possible reporting on your CRs. Read Tuscani's thread about PFD off the Frequently Request Threads link. You might wanna bookmark it. There are very good reading assignments there.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=6834

3) For some things on your CRs, you can overcome them with goodwill.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=5933

Message Edited by Noah_Bodie on 06-13-2007 12:57 PM

[Anonymous]

Lotta abbreviations and acronyms here. You'll wanna skim thru them.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=3866

[Anonymous]

Tallygirl, definitely don't wait to try and get a credit card. Read my stickied thread here:

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=5662

[Anonymous]

I stongly disagree. Most DMP's can only charge the maximum amount allowed by state law. Which is $15 to $30 a month. I guess if you add that amount over 4 years that is a lot of money. But they have saved by butt. I was being charged $375 a month in late fees because I couldn't keep up.

My credit score did not drop. Mine went up 100 points in 7 months.  (468 to 570) DMP's can't damage your credit score. Only thing damaging is the notation the creditors put on your credit report. I don't plan on using any credit the next few years. The notation will roll off when the bills are paid off. Most card companies will report you late until they receive 3 consecutive payments. I guess it is a test to see if you are really serious to fix your situation. My point is if you are already getting flagged for late payments 30..60.. 90..  Will it really matter if you are going to be dinged 30 days late the next three months? And after 3 months most card companies (not all) will backdate your lates and make them current.

I tried to do it myself. My creditors would not budge.. Some of my cards offered a 12 month program but after the 12 months they kick you back up to the 31% default interest rate and the higher minimum payment.

No DMP's are not for everyone.. But they do work for certain people. If you have good credit and are $10 grand in credit card debt and just want a break with lower interest. Don't do it... A good CCCS or DMP company should refuse services to you.

"I cannot emphasize this enough. Do NOT use CCCS or any DMP company. Best case scenario, they will charge you a ridiculous sum of money to do things you can do yourself. Worst case scenario, believe it or not, they will make your credit even worse. Yes, it can almost always get worse."

Message Edited by Pants on 06-13-2007 01:23 PM

Message Edited by Pants on 06-13-2007 01:29 PM

Message Edited by Pants on 06-13-2007 01:33 PM

[sl]

I am in a Debt Mangement Program.  I enrolled 4 years ago and it is the best thing I ever did.  It saved me late fees and over the limit fees.

PM if you want the one I am enrolled in.

BTW...Mine is $30 a month.

Message Edited by sl on 06-13-2007 01:33 PM

[Anonymous]

My scores came with a snorkel years ago. Hang in there. It's a lot of hard work. But the pieces can be glued back together.

Message Edited by ilovepizza on 06-13-2007 01:49 PM

[Anonymous]

Sorry for flooding the thread with messages...

I wanted to throw in a few comments.. I think the debt settlement companies are giving DMP's and CCCS's a bad name. Then you hear ads for these scam type companies on the radio and tv..

I also think there are a lot of Debt Managment Agencies taking in customers they shouldn't be. If you are so far in debt that you can't afford the minimum payment. A CCCS should turn you away. Also if you have an income where you can comfortably pay your debt,  the agency should not take you in as a customer.

I am getting off topic here.. but good luck IT IS a long road.. I don't want to discourage but it is harder to pay off debt than it is to lose weight.  Paying off debt is like a diet but worse.  If anyone needs to lose 50 pounds they could probably lose it in a year if they wanted to. Think of a repayment plan like a diet that goes on for several years. It will be very rewarding in the long run..

[Anonymous]

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Pants wrote:

My credit score did not drop. Mine went up 100 points in 7 months.  (468 to 570) DMP's can't damage your credit score.

...

No DMP's are not for everyone.. But they do work for certain people. If you have good credit and are $10 grand in credit card debt and just want a break with lower interest. Don't do it... A good CCCS or DMP company should refuse services to you.

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The 40 or so people I've heard from who did use a DMP saw their scores tank and things go from bad to worse. You and perhaps 3 others on MyFico had a positive to neutral experience. Most have cited upwards of $100 a month for DMPs.

Most of the people who've had bad experience with DMPs, that I've talked to, had collections, chargeoffs, lates, et al. Once they found CIC or CB, life turned better when they dumped their DMPs.

YMMV.