I am seeking input from people who have been through a debt management plan, particularly with one of the larger credit counselors like Greenpath or Take Charge America. I'd really like to know what people's experience with these organizations has been like, good or otherwise. Thanks --
It's always a YMMV type of thing. Mine personally? It ranks among the worst decisions I've ever made. As soon as I signed up, all my CCs closed and dumped me to collections.
I use TCA and I've found them to be great! Since DH's accident, and 50% pay cut due to the accidnet, I needed to do something!
Nothing went to collections (11 accounts) and some of them have remained reporting as OPEN (NFCU is one). Target gave us 0% interest
and most others went down to 10% or below (except for three). I did NOT include our NAVchek in the process and that remained as open for us to continue use.
As I have been paying off the smaller balances, I add that extra to my monthly payment to bring down the larger balances. I really like having just one payment, but be warned! Review each statement EVERY MONTH for errors, etc.
I am going to be taking the remaining 6 months over myself in June. I'm happy with the progress! TCA is also very easy to work with and I love their site! YMMV, I suppose it's what you get from it....and each of our situations is different. My DH couldn't walk for almost one year due to a back injury, it's hard to be a salesman and not be able to walk...or sit....or sleep....
Experience with DMP's is largely based on what the expected results are. They are not for everyone. They are not for consumers who are just looking for lower interest rates. These programs are designed for people who need help repaying their debts and are already falling behind - or close to it without immediate help. Most creditors will close the accounts and may report to the credit bureau as "slow pay" or "not paid as agreed". In all fairness, creditors reserve the right to report these things, as joining a DMP you are breaking your original contract in terms of the interest to be paid back on money they lent to you. In addition, consumers should not be using accounts enrolled, or applying for new credit, that is definitely not a hardship situation that warrants a DMP enrollment.
A reputable and above board DMP company will disclose all of the potential negatives along with the positives.
Just my 2¢