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cv91915 has set up a Go Fund Me page to take donations that will be used for flowers for breeze's memorial, and excess will be donated to a cancer charity in breeze's name.  If you'd like to participate, please go here:  https://www.gofundme.com/breeze-memorial .  If you have any questions about donating or the GFM, please reach out to cv91915.  
 
 
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Sunday, unexpectedly, we lost one of our own.  After a sudden diagnosis of liver cancer just two days before, our very own mama Breeze lost her battle with this disease and passed away on Sunday afternoon.   She passed peacefully surrounded by her family.
 
We know that many of you will be as devastated as we are to learn of this, and we know that you will share in our grief.  We will be in the Feedback forum with you, sharing our memories and our tears.  We encourage you to join us there.
 
We started on this journey fifteen years ago - breeze, Pam, LKH, and radi8.  Through everything that has transpired over the past fifteen years, we have always remained family - and Mama breeze was an integral part of that family.  We will be posting additional information here, as much as we can while still respecting her desire for privacy and anonymity.  For now, while we process our grief, we will close this notice with Godspeed, Mama.  We miss you so much already.

 

- Pam, LKH, radi8, Marv

- the mods and forum leads


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bozzburg

Debt Management Plan

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Hello All,

 

Does anybody have reccomendations on any LEGIT DMP companies?

 

Is this a good way to pay off debt?

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Hello All,

 

Does anybody have reccomendations on any LEGIT DMP companies?

 

Is this a good way to pay off debt?

You can do it yourself. All the knowledge you need is here.

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I am really just in desperation mode right now. For the time being, extra money isn't coming from anywhere. My wife helps me out but it is stretching very thin. I am now up to paying things 29 days late every month, and every month it gets pushed over a few more days. Playing with fire here. Now, I have no time left. I am very limited in choices here. I would RATHER NOT do anything that will affect my credit profile right now. ANYTHING. But do I sit here and worry myself to a heart attack? Frankly that is what I am doing because I KNOW the LONG and HARD road it has been clearing my credit up. It isn't a road I want to go down again. Options right now are:

 

-Claim BK, but with what I owe it isn't worth it

-Just don't pay anything and worry about it a year or 2 from now

 

Option #2 will do nothing but put me in a worse off position.

 

Do I call all of my creditors up and tell them I have no job right now. All my cards get closed down. Balances are going to be expected to be paid in full. Then what? I am barely making the mims right now. I just don't know WTF to do.

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a DMP will ruin your credit and NOT offer the legal protections of BK.

Im confused. I thought there was a HUGE difference between a Debt Management Program and a Debt Settlement program. Here is what I thought:

 

A Debt Settlement Program lets everything go into default status while they collect money from you. After they have collected to money from you they then use the money they collected to negotiate a payoff. In the process of course all of your accounts get destroyed with late payments and charge offs.

 

A Debt Management Program is the DMP company goes through your bills and formulates a payoff plan. They contact the creditors and tell them you are in a debt management plan and negotiate late fee reversals and potentially lower interest rates. You make a monthly payment to them to pay the bills. In return however, they close every card that you add into the debt management plan.

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I moved your question into the correct forum for people who are needing a debt management plan. There are several discussed in this forum. The one I am familiar with is Greenpath. The thing is, do not get involved with a debt settlement company or any DMP that is not a nonprofit.

 

Some of your cards may not accept the DMP, and you will have to keep those up yourself. Make sure you understand which cards do and do not accept the plan. You cannot negotiate a plan like this on your own, since most card companies will require you to be 3 months behind before they will even consider giving you a hardship plan. You will have to figure out a budget that includes the DMP payment and any cards that do not accept the DMP, and makes sure you can eat and keep the lights on.

 

I would say, call Greenpath, see if they operate in your state, and whether you qualify for their plan. DO NOT call your card company and tell them you are having a hard time. Also, figure out how you are going to live without using cards, because they are going to make you close them while you are in the plan. If you cannot live and pay your bills without any cards while in the DMP, then you should look at bankruptcy,

 

Read through the threads here, talk to Greenpath,

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a DMP will ruin your credit and NOT offer the legal protections of BK.

Im confused. I thought there was a HUGE difference between a Debt Management Program and a Debt Settlement program. Here is what I thought:

 

A Debt Settlement Program lets everything go into default status while they collect money from you. After they have collected to money from you they then use the money they collected to negotiate a payoff. In the process of course all of your accounts get destroyed with late payments and charge offs.

 

A Debt Management Program is the DMP company goes through your bills and formulates a payoff plan. They contact the creditors and tell them you are in a debt management plan and negotiate late fee reversals and potentially lower interest rates. You make a monthly payment to them to pay the bills. In return however, they close every card that you add into the debt management plan.

If you have a 2006 car drive for Uber or Lift. It beats all DMP and DSP. Or look for a second job. Go to an employment agency in your area, they are looking for candidates.....you won't negotiate debt with lenders by saying I have no job rather than saying I find a job but income is reduced.

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Are you unemployed? I thought that was something you just decided to tell your creditors. Do NOT tell your card companies you are unemployed even if it's true.

 

If it's true you will not be able to qualify for a DMP. Find something. Dog walking, lawns, driving for Uber or Lyft, deliver pizza, handyman, construction, day labor.

 

If you aren't willing to do that kind of scrambling, then file bk immediately, before you get the 1 month behind on your cards. If you file while your debts are current, it is VERY easy to come back quickly. Just grit your teeth and decide - fast.

 

tobettercredit - with most card companies, if you call them and tell them anything negative about your income situation, they wil close the cards ASAP. All their sweet talk about "talk to us" is just PR. They don't care, they will cut their losses. Plus, right now, credit card debt is at an all time high in this country. They are all getting nervous. Trust me. I've been at this a long long time.

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a DMP will ruin your credit and NOT offer the legal protections of BK.

A Debt Management Program is the DMP company goes through your bills and formulates a payoff plan. They contact the creditors and tell them you are in a debt management plan and negotiate late fee reversals and potentially lower interest rates. You make a monthly payment to them to pay the bills. In return however, they close every card that you add into the debt management plan.

I recall there is a CR notation about accounts being included in a DMP. That tends to trigger adverse actions on other accounts and can be just as bad as a BK. Accounts can be closed with the notation "settled for less than full". While in a DMP your accounts can be dinged with late payments if the plan does not pay the required amounts, and the risk of being listed as a charge off.

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No, that's not entirely true. Yes, reports have a notation that you are in a DMP. I've never seen adverse action from another creditor that did not participate in the plan, as long as payments were made on time. What happens a lot of the time is that people don't know that some cards will not agree to the plan. I know AmEx does not. Greenpath tells you which card are not participating, and you must keep up those payments to stay in the DMP.

 

After the DMP is completed, some of the card companies will reopen their cards or give a new card. The notations are removed, and credit scores go right back up.

 

I actually know people - people I'm close to, who are CBer's, who have used Greenpath because they had to maintain a security clearance. So this is not "I heard that ....." I know that Greenpath does it the right way.

 

There are times when someone needs bk, sometimes when they need to grab their bootstraps and deal with it, and sometimes when a DMP works best. It is up to the person who will have to live with the results. They DO need all the info, in order to make a decision.

 

I used to be a hardline "never use a DMP" until after the 2007-2009 crash. There are good reasons to use one. Make sure people have all the info so they can decide what's best for them.

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Are you unemployed? I thought that was something you just decided to tell your creditors. Do NOT tell your card companies you are unemployed even if it's true.

 

If it's true you will not be able to qualify for a DMP. Find something. Dog walking, lawns, driving for Uber or Lyft, deliver pizza, handyman, construction, day labor.

 

If you aren't willing to do that kind of scrambling, then file bk immediately, before you get the 1 month behind on your cards. If you file while your debts are current, it is VERY easy to come back quickly. Just grit your teeth and decide - fast.

 

tobettercredit - with most card companies, if you call them and tell them anything negative about your income situation, they wil close the cards ASAP. All their sweet talk about "talk to us" is just PR. They don't care, they will cut their losses. Plus, right now, credit card debt is at an all time high in this country. They are all getting nervous. Trust me. I've been at this a long long time.

No I haven't told any creditors anything about being unemployed. Because as you stated, I figured that would end up making matters worse. I'm trying to do anything within my power to upkeep my 100% payment history. The score and balances In not worried about right now. I'm just trying to maintain mims until the financial situation changes.

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Do you have an income? Prospects for something better? Expecting an inheritance. :D

 

Not being nosy, just want to help.

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My daughter called her card companies and all but Discover, and Credit One, gave her o% interest for 48 months. They were under $3000 each and some were with the same company. The two Credit One cards were low payments anyway, she evidently wanted to have her cake and eat it too.

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Excellent! Since she had to handle it, she'll probably learn her lesson. It's all fun until the bills come. :D

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Are you unemployed? I thought that was something you just decided to tell your creditors. Do NOT tell your card companies you are unemployed even if it's true.

 

If it's true you will not be able to qualify for a DMP. Find something. Dog walking, lawns, driving for Uber or Lyft, deliver pizza, handyman, construction, day labor.

 

If you aren't willing to do that kind of scrambling, then file bk immediately, before you get the 1 month behind on your cards. If you file while your debts are current, it is VERY easy to come back quickly. Just grit your teeth and decide - fast.

 

tobettercredit - with most card companies, if you call them and tell them anything negative about your income situation, they wil close the cards ASAP. All their sweet talk about "talk to us" is just PR. They don't care, they will cut their losses. Plus, right now, credit card debt is at an all time high in this country. They are all getting nervous. Trust me. I've been at this a long long time.

 

Can you expand on this? I was in a two income household that has been reduced to one. I'm having a hard time covering all my bills but none of my cards are in the rear. I came here to find out the difference between Chapter 7 and Chapter 13 because I have a feeling, I'll be need to do this soon as I literally have about $100 to float me from check to check. I have about $17K in credit card debt.

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If you tell them anything negative about your income, like being unemployed, reduced income, etc., they most likely will close the accounts, leaving you with no credit, and a high balance to limit ratio. That will tank your scores.

 

If you think you need to file, figure it out ASAP, then file before anything is delinquent. You can bounce right back from a bk if you haven't had a bunch of defaults prior. On the other hand if there is any possibility of the situation improving any time soon, dig in, make a budget, see where you really stand.

 

Oh, and stop using the cards. If you are using them to live on, that's a losing game. Just go on and file for bk.

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If you tell them anything negative about your income, like being unemployed, reduced income, etc., they most likely will close the accounts, leaving you with no credit, and a high balance to limit ratio. That will tank your scores.

 

If you think you need to file, figure it out ASAP, then file before anything is delinquent. You can bounce right back from a bk if you haven't had a bunch of defaults prior. On the other hand if there is any possibility of the situation improving any time soon, dig in, make a budget, see where you really stand.

 

Oh, and stop using the cards. If you are using them to live on, that's a losing game. Just go on and file for bk.

Gotcha now. I've only had (1) 30 day late which was just an oversight but all of them are current, the balances are just high. I'm going to get on top of it next week. I read up as much as possible so I can make informed decision other than letting someone else make those decisions for me because I'm green to the process. I dont think I will gain that other income back so I dont see my situation improving anytime soon. Thanks for the reply.

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