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debt mgmt program

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Established Member

debt mgmt program

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!
Message 1 of 3
2 REPLIES 2
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Moderator Emeritus

Re: debt mgmt program

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!
Message 2 of 3
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Established Member

Re: debt mgmt program

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.....
 
 
Message 3 of 3
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