Does anyone have a list of the, "legit" CCC offering DMP? And how much would this affect my credit rating? I have about $40,000 in credit card debt. My monthly income is around $8500 but I live in a very, very expensive area and have a family of four. I can afford the minimums for my credit card payments (which totals around $800-$1000 per month) but I often forget payments here and there because of the quantity of cards. It looks like I'm going to be needing a new car soon as well, so I want to minimize any negative impact on my credit. I do not want to include ALL of my cards, because I have a few cards with less than 10% APR, which I can handle on my own as far as pay off. Would it be best to call and close the accounts that I want to include in a DMP before initiating anything?
My income will increase to about $14,500 per month in 2 years so I'm not too worried about paying off the DMP early. My goal is to consolidate everything and try to reduce the debt and save up some money before I enter the next phase of life. Thanks in advance.
DMP companies - which one(s)?
Started by
HooahDOC
, Jun 16 2012 12:15 PM
8 replies to this topic
#1
Posted 16 June 2012 - 12:15 PM
#2
Posted 30 October 2012 - 02:15 PM
Do not use a debt management company. They are ripoffs. Do it yourself. I recently settled $300,000 of credit card and line of credit debt for $75,000. Most settled for 17% to 30%. Capital One was the hardest at 45%. Stop paying for six months. Answer the phone and be polite. Start at 10%. Be realistic and settle for around 25-30%. Then rebuild your credit with secured credit cards and credit union loans. Good luck.
#3
Posted 21 February 2013 - 04:15 PM
Do not use a debt management company. They are ripoffs. Do it yourself. I recently settled $300,000 of credit card and line of credit debt for $75,000. Most settled for 17% to 30%. Capital One was the hardest at 45%. Stop paying for six months. Answer the phone and be polite. Start at 10%. Be realistic and settle for around 25-30%. Then rebuild your credit with secured credit cards and credit union loans. Good luck.
How exactly do you do this? Just ask them to accept x% of what you owe them and just hope that they will bite? I serious, because I need to do this and was about to go with a debt management company but I'm not sure I want to go that route. I just know I will never get on top of this mountain by doing what I am currently and I just want this mess to go away. Thanks.
#4
breeze
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Posted 21 February 2013 - 04:28 PM
How far behind are you? Give us an idea of the status of the debts. There are a lot of variables now after the big credit crunch. You may benefit from using a plan, or it could be better to do it yourself. More details....
#5
Posted 22 February 2013 - 09:34 PM
Sorry, I have been busy and forgot to come back to check the post. It's actually a moot point now, but another topic has arisen. My ex-wife (who was still legally married to me at the time) decided to enroll us BOTH into a debt management/credit counseling program. I was NEVER contacted by the company to give my permission to place accounts to which I am the sole holder into the program. My wife told them that she had an unlimited POA at the time (Which isn't true because it had expired) but they did not request a copy of the POA anyway and just took her word for it.
Now my credit is totally ruined and dropped a significant amount after the creditors started updating. I spoke with someone recently about disenrolling from the program and was told that none of the negative credit stuff would be reversed and the accounts would likely remain closed.
Is there any way to reverse any of this without my ex being charged with fraud and going to jail, or some other negative consequence? I am very surprised I was never involved in the process given several of the accounts are solely mine.
*UPDATE* So I just pulled my credit report and discovered that the CC/DM company has NOT BEEN PAYING on any of the accounts they were supposed to be paying. So, now I have several accounts 90+ days past due. Do I have ANY resourse whatsoever?
Edited by HooahDOC, 22 February 2013 - 09:54 PM.
#6
Posted 23 February 2013 - 12:08 AM
How far behind are you? Give us an idea of the status of the debts. There are a lot of variables now after the big credit crunch. You may benefit from using a plan, or it could be better to do it yourself. More details....
I'm in 20k, 9k to a line of credit with beneficial, the rest are credit cards. I'm current on everything but it will take me forever to get it all under control and I just want it to go away. I don't want to file bankruptcy but I'm starting to think I have no choice.
#7
breeze
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Posted 27 February 2013 - 09:42 AM
Sorry, I have been busy and forgot to come back to check the post. It's actually a moot point now, but another topic has arisen. My ex-wife (who was still legally married to me at the time) decided to enroll us BOTH into a debt management/credit counseling program. I was NEVER contacted by the company to give my permission to place accounts to which I am the sole holder into the program. My wife told them that she had an unlimited POA at the time (Which isn't true because it had expired) but they did not request a copy of the POA anyway and just took her word for it.
Now my credit is totally ruined and dropped a significant amount after the creditors started updating. I spoke with someone recently about disenrolling from the program and was told that none of the negative credit stuff would be reversed and the accounts would likely remain closed.
Is there any way to reverse any of this without my ex being charged with fraud and going to jail, or some other negative consequence? I am very surprised I was never involved in the process given several of the accounts are solely mine.
*UPDATE* So I just pulled my credit report and discovered that the CC/DM company has NOT BEEN PAYING on any of the accounts they were supposed to be paying. So, now I have several accounts 90+ days past due. Do I have ANY resourse whatsoever?
Contact your state's attorney general and file a complaint against the debt settlement company - that's what it is. This should not involve your ex in any way. She was duped. Standard procedure for debt settlement companies. There is a big different between credit counseling and debt settlement. Debt settlement totally trashes your credit for years to come. Your wife is paying the payments every month, and the settlement company is investing them somewhere. Theoretically, when they have accumulated enough money to negotiate a settlement with a credit card company, they will settle the account. However, hidden in the murkey background of the contract is that they take a hefty fee off the top of each payment your wife makes.
File a complaint. If your state AG does not take action, there is a new agency you can turn to - but try the AG first.
#8
Posted 28 February 2013 - 07:30 PM
http://www.delraycc.com/
That's the company. It looks like a Non-prof so I'm not sure what the problem is.
#9
breeze
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Posted 09 March 2013 - 11:26 PM
Non profit is a tax status it doesn't mean they're good guys.
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