debt mgmt program

[nanrobbi]

I have an "opportunity" to start a debt mgmt program (DMP) through an agency referred to

me by my credit union.  It will decrease the percentage of 6 different credit cards, total

less payment $182 per month.  I am required to close these accounts, which is fine - BUT

how will this affect FICO?  I'm closing with a balance, and although paying monthly, no one

can tell me what impact this will have.  Anyone have any experience with this?????

Thanks!

[Anonymous]

Just my opinion.......If I could afford to pay these I would!!!  A closed account with a Bal  will cause scores to go down!!!

The CL is removed from scoring  BUT  the amount Bal owed is counted. So your UTIL would be way up there!

I never close my accounts!

[nanrobbi]

so the credit limit is removed, the balance owed is still there, credit utilized becomes huge -

it sounds scary, yet I'm told as things are paid down the score recovers quickly.....

I don't know what to do.  I really need the break of less payments, so I have to weigh

the risk.  I wish I had more information as to how this will affect the score and for how

long.....