debt mgmt program

[demi]

Boy, I don't remember anything like that.  I would talk to the dmp people first and see what its all about...if for some reason they aren't getting what they want at first, you could end up with more dings.  It might be some type of disclosure for just a couple of stubborn credit card agencies as well.  Then call the cards I guess.

[haulingthescoreup]

I agree, that needs investigating. It sounds as if you might need to be prepared to pay the hold-outs yourself, at least for a while.

And as another poster said, stay on top of your credit card statements. The DMP might not make the payments in time to meet the due date, causing a string of 30 day lates to appear on your reports. Once you know what day of the month your DMP sends out payments, you might want to ask your CCC's to adjust due dates to allow plenty of time for the payments to reach them and post.

[nanrobbi]

I got a schedule of when payments will be disbursed, and as long as I'm "allowed" to make

my own payment at first, I could watch it and make sure nothing is late.  I would never let

it go beyond 30 days.  I think the things I "sign off" on prepare you for the worst as it sounds

like each company is different. 

I'm going to call today and ask some more questions.

thanks for the reply.....

[Anonymous]

Avoid debt management programs if at all possible. I can almost assure you that they're shady. I joined one way back in 1998. A year later I got out of it but after I recently began monitoring my credit & I noticed some re-aged accounts by original creditors and collection agencies. I couldn't believe this so I immediately wrote to the creditors asking for validation. I finally contacted the DMP and requested that they mail me my payment history. After receiving this information I am convinced that they're working side-by-side with those nasty creditors. The DMP reported that final payments had been made to the creditors on my behalf all the way up until 2003! That's absurd, right? I haven't been a member since '99 so that's impossible. Unfortunately, I didn't keep proof after I left the program. I'm assuming that they both got something out of the deal that they made but all I got was additional years added to the SOL and that sucks. LEAVE THE DMP ALONE. Trust me.

[uktaurusbulba]

I enrolled in one back in February. I have alot of debt. Companies were jacking up my rates to the point where my average rate was in the 24% range. I joined a DMP so I could actually make some progress on my debt. My average interest rate now is probably between 11-12% now. I pay $1261/month, of which $800 or so goes to principal every month. DMP does not affect your credit, although you generally cannot obtain new lines while in the program. That is the tough part. Living without credit is tough. I had close to 60k in debt. After about 7 months, its down to 55k. I have a couple of businesses that are doing well and growing which is allowing me to make payments. I have been trying to obtain business financing to refinance my personal and bring my scores up. One thing to be aware about is that when you enter a DMP, sometimes payment schedules are off. I got hammered with several lates in my first 2 months. Tough to get them removed because I owed them alot of money and am no longer a real customer. That was my mistake.

[fishbjc]

Tai:  It sounds as though you've had a bad experience, but many people HAVE not had a bad experience.

Personally, I've had an awesome experience and would suggest this company to anyone.  It does NOT affect your credit and the only lines I had to close were the two enrolled in CCCS.  I CAN use my other cards.  I CANNOT obtain new credit, but CAN obtain cli on current accounts.

I've paid more than 50% down and I'm halfway through the program.  I'm going to finish about one year early.

[marty56]

Perhaps great is is the wrong word but I was in a DMP program for 4 and half years.  It worked for my and since I graduated the program, I was able to get a prime Visa card and a good auto loan at my CU.

To be honest my credit problem prior to DMP was util and I didnt have any major derog information on my report prior to DMP.

You have to watch your statments to make sure the payment is paid on time and DO NOT GET NEW CREDIT WHILE IN DMP.

[Anonymous]

Hello,

Can you tell me which company you used.

Thanks

Jen-X

[demi]

I also have had very postitive experience with my DMP plan.  I make my last payment on the 2nd of next month, over the past 3 1/2 years my credit has gone from really bad to 690's, good enough to purchase my first home (which I just moved in).  Don't listen to those who say it hurts your credit...the only real possible way is by closing accounts.  Mine required me to close everything, I have lived without a credit card the whole time...it is possible.  I do plan on getting a few, more to rebuild my credit than anythiing else.

Make sure its reputable.  Mine was a non-profit that charged $35 a month, they did an electronic transfer around the 1st of the month and everything was paid within a week. 

[Anonymous]

Different strokes for different folks! I still would not advise you to enroll in a DMP...just my opinion.