Some questions about DMP Options

[CarrieB1970]

Hi all,

I have a few questions about a debt management program. I am thinking about calling either InCharge or GreenPath.

I'll try to keep this short Last month my husband and I got married. We've been living together for about 5 years and have about $30k of credit card debt - most of it in my name because my credit is (was) better than his. He makes a lot more money than I do (we both have good jobs but he makes more), so he pays most of the bills. We have a high interest rate on our mortgage (the house is in my name, so is the mortgage). We cannot refi as the house is now worth less than what we owe. I'm sure you all know the story.

Most of the credit card debt is from a ton of oral surgery I had to have (we dont have dental insurance) and some veterinary bills for our pets. We dont have kids, so the pets are our family - so please don't hate on this. Putting them to sleep was not an option for us.

Now the credit card co's have raised the interest rates and we are having a hard time making the payments every month. I've never been late, but its a struggle. I've called the credit card co's to see if they can help me out with lower payments, hardship, etc, but they wont since I'm not in default and have a job.

Does anyone have any experience with InCharge or GreenPath?

Whats involved to qualify?

Am I still allowed to have certain bills under my own payments, like car payment and cell phone?

If anyone can explain to me how this all works, it would mean a lot to me so I have some clue before I call.

thanks so much!

Carrie

[ts8586]

Hi all,

I have a few questions about a debt management program. I am thinking about calling either InCharge or GreenPath.

I'll try to keep this short Last month my husband and I got married. We've been living together for about 5 years and have about $30k of credit card debt - most of it in my name because my credit is (was) better than his. He makes a lot more money than I do (we both have good jobs but he makes more), so he pays most of the bills. We have a high interest rate on our mortgage (the house is in my name, so is the mortgage). We cannot refi as the house is now worth less than what we owe. I'm sure you all know the story.

Most of the credit card debt is from a ton of oral surgery I had to have (we dont have dental insurance) and some veterinary bills for our pets. We dont have kids, so the pets are our family - so please don't hate on this. Putting them to sleep was not an option for us.

Now the credit card co's have raised the interest rates and we are having a hard time making the payments every month. I've never been late, but its a struggle. I've called the credit card co's to see if they can help me out with lower payments, hardship, etc, but they wont since I'm not in default and have a job.

Does anyone have any experience with InCharge or GreenPath?

Whats involved to qualify?

Am I still allowed to have certain bills under my own payments, like car payment and cell phone?

If anyone can explain to me how this all works, it would mean a lot to me so I have some clue before I call.

thanks so much!

Carrie

Carrie, I can't give you a whole lot of answers, but I was looking into Greenpath myself. I just can't pull the trigger on calling them yet. I'm really trying to fix my own problems myself first, but, I did go on the Better Business Bureau website last week, and they do have a very clean record. Please keep us updated, I'd really like to hear your experience with the company that you do go with.

[radi8]

If they set you up on a DMP, it'll generally only include credit card debt. They may include installment loans if they are unsecured, but that's not that common.

You make one monthly payment, which they distribute to your credit card lenders.
The accounts will be closed, the rates will be lowered to whatever the agreed upon interest rate is (see sticky up top for typical rates and minimum payments)

When you call, they'll set you up with about an hour long appointment (can be done over the phone). They'll go over income and expenses and see if a DMP would benefit you. You'll be given a projected monthly payment, you can then decide if it'll be helpful or not.

[dolly1213]

This may be late but I am using Incharge and so far it is great!

Yes you can have other bills it is only credit cards. Not all mine have been closed but I choose not to charge on them as that would defeat the purpose.

Read my post titled "my journey with debt managemen...

[CarrieB1970]

Hi - I spoke to Greenpath and have the paperwork, just need to sign it. One thing I am concerned about, which I read on Care One's site (I am not using them, just was reading their site) is that my creditors will not be paid for a while, and then when my account is delinquent they negotiate with the creditors, then payments are made.

Does anyone know if this is true with Greenpath?

I am a bit worried about how hard this is all going to hit my credit and my ability to rebuild in the future.

If I go with Greenpath, it will save me about $450 per month. I would make two payments to them per month out of each paycheck.

I am still on the fence on whether this is the best route to go. Its all so confusing. I am definitely struggling to pay all the credit cards each month and $450 less would be a big relief.

Thanks for any advice.

Carrie

[radi8]

Does anyone know if this is true with Greenpath?

Ask them about it. Up to what point do you need to continue making payments so you aren't reported "late"?

[dolly1213]

I believe the issue with lates is that some people are not on top of the payments. Incharge was very up front and told me that my payment date is the 8th but to be safe change all my due dates to 2 weeks after. My first payment was right before Columbus day weekend and the payment posted in 4 days. All of my statements reflect the new due date I asked for and I will always check my statements to make sure and for at least a month or 2 call and check that the payment is made on time. I know 2 people who used Incharge for 4 years or so and they never had an issue with lates.

One thing that concerns me is how you have the payments cut so low. My payments are lower but not by much. The only time I was able to save hundreds was to look into a company that slashes your balances - debt reduction. Is that what you are doing? Most creditors will want at least a standard 2% or so (I am not sure the exact amount)for a payment regardless. It seems paying so much less even with the reduction in interest would make you have to pay for years.

[CarrieB1970]

Hi Dolly,

The payments are lower because on some of my credit cards, I am currently paying a lot more than the minimum in an effort to reduce my debt on my own. Which isn't really working. But even if I paid the minimum on all of my cards myself, Greenpath is still cheaper and I will get out of debt faster.

Did you say that InCharge let you keep one credit card? I want to keep one, but Greenpath says I can't because the other creditors wouldn't go for it. Not sure if this is true or not. I would like to keep one just for emergencies.

Is InCharge charging you a monthly fee? GP would charge me $50 per month, with no set up fee.

Thanks~!
Carrie

[radi8]

Greenpath says I can't because the other creditors wouldn't go for it. Not sure if this is true or not.

Some creditors will have an issue with it. IIRC, Chase is one that objects pretty loudly. The truth of the matter is your other creditors won't know unless they pull your reports often enough to notice you are charging/paying/charging one of the cards. Not all creditors report "DMP", so they can't tell by that. Greenpath is pretty conservative though and won't let you take the chance.

Here's what I'd consider doing: You are saving $$ every month on the payments, I hope? Take that difference for the next several months and put it into savings.
That'll cover your emergencies, at least up to a certain point.