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Home > Reader Questions > Considering MMI Program But Not Sure. – Christy

Considering MMI Program But Not Sure. – Christy

Considering MMI program to pay of my debt. I was out on disability for about 10 months and had to use my credit card to make ends meet. I made 1 late credit card payment which then cause my interest to go up to 30%. I was paying more than minimal payment every month hoping to see the balance go down but that is not the case.

The problem with the MMI program is that they are proposing a 4 year repayment plan for a $4915.00 balance, with minimal payment of 121. While it sounds tempting, it seems like 4 years is too long to be in a another “credit” bind.

What are some other alternative that I may need to consider?

Christy

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Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Margaret Fong

    Hello Christy:

    I highly recommend Money Management International because I am a client myself. I had trouble making the minimum payments to approxiamately 8 creditors. I tried the individual repayment plan myself to every creditor and was always overdrawn every month on my checking account. I got tired of being overdrawn and having no money to my name. Everytime when I got paid, I put a little bit aside in my savings and when it is nearing the end of the month, the bank would take it away.

    They will pull up your credit report and ask you how are you making money to support yourself and what made you decide to go thru a debt management program. They will ask you how much you make a month and figure out your expenses so you can set aside a certain date each month for MMI to electronically take away your funds. 4 years is not a lot of time compared to doing it yourself. MMi is a company that I found thru my bank’s website.

    I do hope that you decide to do something about your debt even if you decide to not go thru them

  • Margaret Fong

    Hello Christy:

    I highly recommend Money Management International because I am a client myself. I had trouble making the minimum payments to approxiamately 8 creditors. I tried the individual repayment plan myself to every creditor and was always overdrawn every month on my checking account. I got tired of being overdrawn and having no money to my name. Everytime when I got paid, I put a little bit aside in my savings and when it is nearing the end of the month, the bank would take it away.

    They will pull up your credit report and ask you how are you making money to support yourself and what made you decide to go thru a debt management program. They will ask you how much you make a month and figure out your expenses so you can set aside a certain date each month for MMI to electronically take away your funds. 4 years is not a lot of time compared to doing it yourself. MMi is a company that I found thru my bank’s website.

    I do hope that you decide to do something about your debt even if you decide to not go thru them

  • Steve Rhode

    My vote is you should do something. The only thing that happens by not making a choice is nothing.

    Take a look at LendingClub.com first for an unsecured debt consolidation loan and let me know what you think. If you do decide to go that route, let me know and I’ll help fund the LendingClub.com loan.

    I would suggest you also ask this credit counseling group for information and then you can compare which solution makes the most sense for your situation.

    Does that seem like a reasonable approach?

    Steve

  • Tracy East

    Christy,

    The reality of your situation is that even if you make more than the minimum payments on your card at the current interest rate it’s going to take several years for you to pay off the account. Getting your interest rate lowered will allow you to tackle that debt much more agressivly. As Damon said, you can certainly pay above the minimum payment they propose which will allow you to significantly shorten that repayment period. If you can’t get your creditor to lower your interest rate on your own, I think a Debt Managment Plan can be an excellent tool for you to acheive debt-free status more quickly!

  • http://www.cesidebtsolutions.org Tracy East

    Christy,

    The reality of your situation is that even if you make more than the minimum payments on your card at the current interest rate it’s going to take several years for you to pay off the account. Getting your interest rate lowered will allow you to tackle that debt much more agressivly. As Damon said, you can certainly pay above the minimum payment they propose which will allow you to significantly shorten that repayment period. If you can’t get your creditor to lower your interest rate on your own, I think a Debt Managment Plan can be an excellent tool for you to acheive debt-free status more quickly!

  • K_seng

    Hi Jim,
    I am in a delimma…my credit is in good standing but I have a debt of 30,000 and my salary is 36,000. I’ve been considering signing up for credit counseling for years but never actually did it. I was also thinking of applying for a home equity loan to pay off my debt but my fear is not getting approval…any ideas or suggestions. KSY

  • K_seng

    Hi Jim,
    I am in a delimma…my credit is in good standing but I have a debt of 30,000 and my salary is 36,000. I’ve been considering signing up for credit counseling for years but never actually did it. I was also thinking of applying for a home equity loan to pay off my debt but my fear is not getting approval…any ideas or suggestions. KSY

    • http://GetOutOfDebt.org Steve Rhode

      My vote is you should do something. The only thing that happens by not making a choice is nothing.

      Take a look at LendingClub.com first for an unsecured debt consolidation loan and let me know what you think. If you do decide to go that route, let me know and I’ll help fund the LendingClub.com loan.

      I would suggest you also ask this credit counseling group for information and then you can compare which solution makes the most sense for your situation.

      Does that seem like a reasonable approach?

      Steve

  • Damon Day

    Hello Christy,

    You can always pay more than is required on a CCCS program like MMI. The question to ask is what is the interest rate they are going to get with the creditor and then what is the fee they are going to charge you every month to get it. Are you able to negotiate with the creditor to get that rate on your own and skip the monthly service fee? Do you have good enough credit to get a loan for a lower rate to pay off this card?

    So those are some of the things you should be looking at. Then you run the numbers and go with the option that gives you the most flexibility at the lowest pay back amount.

  • http://DamonDay.com Damon Day

    Hello Christy,

    You can always pay more than is required on a CCCS program like MMI. The question to ask is what is the interest rate they are going to get with the creditor and then what is the fee they are going to charge you every month to get it. Are you able to negotiate with the creditor to get that rate on your own and skip the monthly service fee? Do you have good enough credit to get a loan for a lower rate to pay off this card?

    So those are some of the things you should be looking at. Then you run the numbers and go with the option that gives you the most flexibility at the lowest pay back amount.

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