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Is Money Management International a Reputable CCCS Company? – Dawn

Dawn

“Dear Steve,

My husband’s income has dropped by about 60%. We’re having a difficult time making ends meet. We have a forebearance plan right now with our mortgage lender. We have about $35,000 in credit card and medical bill debt. We’ve fallen behind on most of our cards by over 30 days and they have increased our interest rate to near 29%. We’ve consulted with Money Management International on this and they are able to bring the monthly payments down by a few hundred dollars, saving us alot of interest and getting everything paid off in 4 years.

How reputable of a company is Money Management International and how damaging is it to our credit history to be on a debt management plan?

Dawn”

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The Answer

 

Dear Dawn,

I suppose that Money Management International is as reputable as any other CCCS office that is part of NFCC. Money Management International is a debt management organization which assists consumers with repaying their debt through a standard debt management plan.

But I suppose the thing that worries me most is that your mortgage is in a forbearance, you’re finding it difficult to get by and thinking of entering a debt management plan. Entering a debt management plan is not going to address the underlying issue here of the loss of income. A forbearance is typically a payment holiday and at some point that will be up for you. You will then have to start paying your mortgage payment and the CCCS payment and hope that your husbands salary has increased by then.

I think what we need to focus on most at this time is if you are able to pay your normal living expenses plus your normal mortgage payment. If you are unable to do that then I’m just worried if entering a debt management plan, with anyone, at this time is a right move for you.

The debt management plan can be a good tool to allow you to repay your debts but you have to remember that the debt management plan is calculated based upon what creditors want rather than what you can afford. Your number one priority is when you are in debt are to make sure that you can properly paid for the essentials; health insurance, mortgage payments, car payments, and other secured and needed bills, like utilities.

If you can afford to pay those essential bills and you have money remaining then that money can be used to enter a debt management plan. But my opinion is that you should also use some of that money to save each month. Allocating all remaining money towards a debt management plan without saving leaves you still in an unsafe position each month.

So in summary I think you should take care of the mortgage situation first. Pay a mortgage payment that your bank and you agree to. And then see if you have enough money left over to enter a debt management plan. If you don’t have enough money left over then you need to look at other solutions, like bankruptcy even.

It does not make any sense to enter debt management plan where you have no reasonable expectation to be able to repay all that you owe over a four or five year period. If you do enter a plan that does not meet your over all goal, then the plan will fail in a few months, next year or a couple years and you will spend all that money but not gotten out of debt.

Does that make sense? Let me know what you decide to do.

Big Hug!

Is Money Management International a Reputable CCCS Company?   Dawn
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About Steve Rhode

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.
  • anwer

    These are good points but you havent answered the question whether as how a debt management plan effects your credit score and you are not giving us the positve aspects of going into this plan, you are only stating the negative aspects.

    can you let us know what the benefits are for entering this type of plan and the difference between this plan and the kind where you just stop paying the creditors and your score is completely ruined….please advise, thans in advance

    • http://GetOutOfDebt.org Steve Rhode
      • Robert

        Ya Steve you didnt answer the questions.

        Dawn,MMI is a pretty reputable company out of all these otehr debt clowns. They have been around longer than anyone. About 30 years. They used to have another name.

        I have been with them for about 7 months. They had one late payment. I didnt get charged a fee though nor did it hurt my rate. I imagine if thats their job to take care of that. They negotiate all the interest rates for you so it cuts down your monthly minimums by alot. If you have good credit and want to keep it. Then maybe its something you want to do. My credit was 702 starting it and it was 702 the other day. Which is what they told me. it wont go down but it wont go up and it would plateau for a while.
        When starting out, they do tell you, you have to cancel your cards which makes no sense to me. I cancelled 3 then turned a 4th one over but didnt close it lol. So that tells me they don’t even know if its closes. They say they want it closed so you dont use it. Dont listen to them.You know your not going to use them. if you think you are just cut them up. Just leave it open and tell them you closed it. They want your business so I’m sure they aren’t going to tell you to close them.
        They are a non-profit organization so thats good because there is a good chance they arent going to rape you.
        They just charge 40$ a month for their service.The first month will be like a double payment, which you want to do so they dont pay them late. You have to stay on them though. if you notice they havent withdrawn their monthly payment I would call them and yell.

        I got with them because I wanted lower rates. I was able to pay them all on time, not always easy, but I could do it. (like i said I have a 702. Anyone can call and negotiate a rate. i was just lazy and worked alot didnt have the time to sit on the phone with these scum bags nor can I understand them half the time( lingo and/or accents).

        I also read if you have low credit score like 400-500. just file for BK. you’re already at rock bottom why drag it out and pay back money you dont have. its easier and you can recover faster than you could pay off a 35K credit card debt. But if its good 700+ then it might be worth sticking out.

        I would focus on paying the mortgage. medical bills can wait since we over pay on them anyway. Just tell them you’ll pay them when you feel better. Then maybe research online how you can negotiate better interest rates with your cards. if that doesnt work then try MMi. Hope that anwsers your question.

      • Lastresort

        Thanks so much for that comment. We have been on the fence about which way to go. We have SS income since one of us is over 75 and one works as a free lance contractor. The more senior is only on the title of our house, not on the mortgage/loan as well as most of the cc as an additional card holder listed as a spouse. Have used up most of our savings and there is not much prospect. Mortgage plus almost 50k in cc and 50k loan from a relative. most of our cc rates are around 10%, our ratings are over 700 and 600 and cars are leased . never been late on anything but debt to income ratio is upside down obviously. Really? Your rating hasn’t gone down but won’t this consolidation show up on your history and have long term consequenses? Any suggestions??

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