What constitutes use of an emergency fund? Urgent advice needed.

[Math_Rocks]

We finally were able to get someone on the phone (about the Barclay's accounts) to say the DMP proposal had been rejected due to too low of a proposed monthly payment. We removed those accounts from the plan to deal with directly until or unless we can get them to accept a proposal. Still very frustrated with them; they are trying to gouge us and take advantage of us. And I am not upset with the DMP at all - they based the proposed payment amounts on what our balance was when we entered DMP. It took about 11 days after that for our first payments to go out (couple days after our first payment went in) and by then two of these accounts charged late fees which took the account over limit which of course meant more fees. So, now, a month later, the proposed payments miss the minimum 2.5% by a few dollars and the creditor chose never to formally respond to the proposal. We called at least 5 times before finding out that our proposal was rejected and why. Grrrr.

[Math_Rocks]

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@Anonymous wrote:
I'm inclined to say, though not strongly suggesting, that you tap into the EF to pay the accounts current. The DMP proposal may fall through. You may be able to work out something directly with the OCs individually, which BTW have you tried? Some are very amenable to closing an account, dropping interest rates, and letting you continue to pay monthly until it's PIF and with no adverse CR dings.

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Thanks for the input, Noah!

Most of our creditors (we have 17 accounts from 10 different creditors) have been absolutely fantastic with the DMP. They responded quickly, lowering interest rates and accepting payments that will have us paid off in no more than 48 months. I think many creditors out there WANT people to go this route because it means that they will get paid. The particular creditor, Barclay's, is our final hold out and I really feel they are trying to abuse us. We have tried dealing with them directly and the best we can get is a 3 month fee waiver program where they won't charge more late or overlimit fees, but won't reverse any already charged, will continue to charge 29.99% interest and will not consider a DMP proposal until after the 3 months have passed. Doesn't seem like a good deal to me!

And, I am now even more inclined to NOT use our little emergency fund to pay them. I know that our credit is going to take a hit; we knew there would be some bumps getting started. But, if we use any of that money, it will take several months to restore it and I feel like if we find a way to com eup with it, they will continue to expect us to jump through unreasonable hoops. Still crossing my fingers that we can get them to do something reasonable in-house or through DMP.