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dolly1213

My journey with debt management

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Hi everyone,

 

I just enrolled in a debt management program with Incharge Debt Solutions http://www.incharge.org

 

Although I am using Incharge there are many companies out there. I know a few people who used incharge and have done some research but make sure you do your own research to see what works for you!

 

I wanted to journal my time in the program to help others in their decision to use a dmp or not. I was always against these plans and figured I could do it all myself but then it came to the point that my interest rates were double and tripling through no fault of my own and no cards would work with me. I have never been late or missed a payment and most told me I would have to be 60 days delinquent before they could offer me anything. I was so angry and started to research dmp as I know a few people who came out of it without trashing their credit. I also noticed Fico is not holding it against us any more.

 

I was able to set up Incharge all online but before my account was activated I had to call to speak with one of the customer service reps who was very helpful. I decided to start on 10/8/2009 so I could do some preparation before hand.

 

I have about 10 accounts in the program and 23K overall. There are 2 accounts I have to add next month as they are too new. I checked my equifax fico score and as of today 9/22 my score is 645.

 

Since nothing starts until 10/8/09 there is not much info. I have receieved an email from Incharge on 5 of the accounts that they have accepted the plan. I am keeping track to make sure I am making all of my payments on time until I am sure Incharge takes over.

 

Although my minimum are the same, dmp's do not cut your debt they lower your interest and give the ability of making 1 payment per month. I will gather the info on my new interest rates and post soon.

 

For now please ask any questions you have and I will answer what I can. I will keep updating this post for those who are interested.

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Hi everyone,

 

I just enrolled in a debt management program with Incharge Debt Solutions http://www.incharge.org

 

Although I am using Incharge there are many companies out there. I know a few people who used incharge and have done some research but make sure you do your own research to see what works for you!

 

I wanted to journal my time in the program to help others in their decision to use a dmp or not. I was always against these plans and figured I could do it all myself but then it came to the point that my interest rates were double and tripling through no fault of my own and no cards would work with me. I have never been late or missed a payment and most told me I would have to be 60 days delinquent before they could offer me anything. I was so angry and started to research dmp as I know a few people who came out of it without trashing their credit. I also noticed Fico is not holding it against us any more.

 

I was able to set up Incharge all online but before my account was activated I had to call to speak with one of the customer service reps who was very helpful. I decided to start on 10/8/2009 so I could do some preparation before hand.

 

I have about 10 accounts in the program and 23K overall. There are 2 accounts I have to add next month as they are too new. I checked my equifax fico score and as of today 9/22 my score is 645.

 

Since nothing starts until 10/8/09 there is not much info. I have receieved an email from Incharge on 5 of the accounts that they have accepted the plan. I am keeping track to make sure I am making all of my payments on time until I am sure Incharge takes over.

 

Although my minimum are the same, dmp's do not cut your debt they lower your interest and give the ability of making 1 payment per month. I will gather the info on my new interest rates and post soon.

 

For now please ask any questions you have and I will answer what I can. I will keep updating this post for those who are interested.

 

I have just subscribed to this thread. Thanks for sharing your journey.

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Good luck. Please be sure to update us on your payment amount, and your approximate time to clear the debt when you receive them.

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My payment amount is $448. The first time will be a $50 set up charge. $30 per month fee is included. I have heard I can ask to lower I just haven't yet.

 

I enrolled 8 accounts and 6 accepted so far. The other 2 should not be a problem. I have 2 more accounts to add this month - they had to be I believe 1 year old.

 

Their calculation on me paying the min would be 18 years 7 months. I did a spreadsheet using the snowball effect If I was to pay off $927 per month (this included 2 of my husbands cards but they only total $800 so shoud not make too much of a difference) I would be done in 3 years 3 months.

 

If I pay the $448 with incharge I will be done in 4 years 2 months. If I pay more $814 I would be done in 26 months. I chose the smallest payment but will make more as I can.

 

So today I made my last payments directly (still may be some more till it is on track)

 

Here is what I learned this week.

 

Make sure to change your due dates. I am paying Incharge on the 8th they said to be safe change dated to around the 22nd. I am almost done doing that but I thought for example if I had a payment due 10/5 I pay this time and my payment through Incharge would be for 11/5. No it is not it would be paid as an extra payment.

 

I was also told to check my statements carefully especially the 1st 3 months. My payments are staying the same but in some cases may be a few dollars less. Until the cc companies update the system I should pay any difference. For example 1 card I pay now $107 in minimums Incharge will be paying $101. I need to make sure I pay the additional $6 until the statement reflects the new payment.

 

One thing I am thinking is some people who complain about DMP's may not know these simple things. My sister had no clue what her due dates were, etc. I think she hired Incharge and just ignored it and paid them. She has no clue what it has done to her account. Incharge has told me all of the information and told me the best ways to keep my credit clean. I think if you are on top of it the negative impact may be minimal for someone like me who was at 90%+ utilization. Let's hope I am right.

 

Next week is my first payment to Incharge. I will keep you posted.

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Definitely check your statements to make sure your CC companies correctly follow the agreed upon interest rate as well. That is something they will not go back on if you notice it 6 months down the road.

 

My biggest issue with my CCCS right now after being involved with them for a year is that I have accounts showing past 30 days due on my credit reports - even though the due dates and the payments aren't past 30 days. I'm butting heads with them all now.

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So far things are running smoothly. I can certainly see why some people have issues. I know some just have bad companies but I feel that the company I am using has been great. I know that my payments may be lower than the cc companies are asking for for the first month or 2 and I have to pay an additional payment. This has only happened with 1 credit card so far and I called and they confirmed next month the payment will be lower.

 

All accounts except 1 so far have accepted the new interest and payment. I changed all my due dates to coincide with my dmp payment. One card said they can't change but the date seems to be ok.

 

Now for the 1 card that won't accept. Juniper! I started with a low teaser rate then went to 21%. In Jan & Feb I was over limit due to financing charges (just a few dollars) they raised my interest to 29%. When I called today to ask if they will accept the debt management plan they said no as I am not delinquent. If I am delinquent 1-2 months they will offer me their inhouse plan at 11%. The debt management can do it at 5%. I am waiting a few more days and I will call again.

 

Right before I hung up the rep wanted to notify me that they are raising limits across the board. This will change my interest rate to 32%! Can you believe the nerve! I have always paid on time so they wont work with me. I have the option to not accept and take a 29%. WoO}}OW big thanks! lol

 

any questions so far

 

I will keep you posted.

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Now for the 1 card that won't accept. Juniper! I started with a low teaser rate then went to 21%. In Jan & Feb I was over limit due to financing charges (just a few dollars) they raised my interest to 29%. When I called today to ask if they will accept the debt management plan they said no as I am not delinquent. If I am delinquent 1-2 months they will offer me their inhouse plan at 11%. The debt management can do it at 5%. I am waiting a few more days and I will call again.

 

 

Dolly, did Incharge contact Juniper, or did you contact them directly?

 

Also, how much is Incharge actually saving you per month on the payments, if you don't mind me asking?

 

Thanks again for the updates.

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Now for the 1 card that won't accept. Juniper!

 

 

Tell them (barclays) to remove all special offers, promos and rewards from the account, then have incharge resubmit the proposal. If Barclays has any special offers on your account they won't accept a DMP.

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I received a letter from Incharge that Juniper does not share the info with them whether or not they accept. I called and the woman said she did not have the proposal. She then said (and it was exactly what Incharge told me would happen) that since my account was not delinquent I will have to keep the 29 or 32% interest. There is no special offer that I am aware of but I will call and check. I wamt to call back and speak to a supervisor as the cs at Juniper had no idea what a DMP is.

 

Incharge told me not to take off Juniper from the plan until I am sure they denied it then if they do I can take it off if I want to be late - that may be the only way to have them work with me or incharge. I am going to call because as Incharge pointed out I was at 20% in June then I was over the limit by just a few dollars and if that is the case I should alread qualify for a hardship plan.

 

My payment is only slightly lower. I am not cutting out payments just interest. A few companies I spoke with said they require 2.5% as the minimum and it looks like my payment through Incharge is about that.

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Hi all,

 

Just a quick update. Everything seems to be going extreamly well and smooth. 9 of the 10 credit cards have accepted the proposal and my statements all reflect the new interest, payment and due date. Some I had to call more than once to change the due date but it is done.

Yes my accounts are closed but I feel so free.

 

The only issue still is Juniper. I have to call Monday but I have been told they will not accept if I have not been late. I have to decide if I want to cancel the Incharge payment for 1-2 months and then re send the proposal - I just hate having a late on my credit report (I know silly since the card will be closed and all) That was the one thing I was proud of no lates. I may have no choice as they are raising the rate to 27-29% on this particular card for all not just me. I did have an overlimit as my payment was not enough but I knew that would happen, I chose not to pay the additional (Incharge only pays what they propose, the rest you should pay until the statement reflects the new min payment) Incharge told me it could take up to 3 months but all creditors have changed my minimum payment. It is just this one as they have not accepted the plan.

 

Well next payment is Monday and I will call Juniper and post again. If anyone has any questions let me know.

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Thanks for the updates! I am thinking about enrolling in a program myself. My credit is great but I'm tired of the interest on my cards and I can't seem to get from under it.

Did u close your accounts first or did the card closed and does it say closed by lender? Thanks

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Thanks for the updates! I am thinking about enrolling in a program myself. My credit is great but I'm tired of the interest on my cards and I can't seem to get from under it.

Did u close your accounts first or did the card closed and does it say closed by lender? Thanks

 

If your credit is great - get a personal loan to consolidate your debt. Go into (read not over the internet) your credit union / bank and sit down and talk about it. If your credit is good and you've had no rate jacking yet, there is no need for these programs.

 

To the OP - thanks for blogging your experience - it is definitely helpful to those considering this path.

Edited by aboveliquidice

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Dolly, do you have any updates? I am very interested in this thread and have learned a lot from your journey.

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She was here in late August. I do hope she logs in and updates us. Maybe she doesn't realize how many people are following along.

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I know this is years old and sorry for abandoning the thread... Life got in the way.

 

Just wanted to update that all has gone better than I could have imagined. I have a relatively small amount left... None of the accounts appear to show on my report as negative so that is great... I will look a little closer to confirm but I am really happy with my decision.

 

Thanks all.

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