Read many of your comments and glad that you are here to help us. I owe about $45,000.00 in credit card debts. None are late but I would like to pay them off in 4 to 5 years instead of forever. I have contacted MMI and they have offer the DMP at $1037/ mo until 2014. I can make this monthly payment no problems and I like the 5 years to debt free plan. I have good job and have no fear of being out of a job. I do not care about my credit score, I can always rebuild them after this and not planning to be in debt ever again.
I have read your article about the success rate of people in the DMP. Is this mean that If I decide to enrole in this I might not suceed. Why? If I know that I can pay every month why would I not succeed. Is the credit card company will later increase my rate to 24% while I am in the program? Will MMI take my money and not paying the creditor?
Rest assured that Money Management International will promptly and properly disburse payments collected from you to your creditors.
If you are going to pay back $1,037 over five years it will total up to $62,220. With that kind of money available you should be able to reduce your own debt within a similar period of time using the debt snowball approach.
The key to getting out of debt quickly is to not reduce your payment from what it is right now and follow the minimum payment down as the creditors reduce it.
By repaying your debt yourself it will improve your credit rating and you’ll retain the benefit of your credit history which accounts for a large part of your credit score. A good credit score is important for a number of reason, and not just to get credit.
Debt management plans are not designed for people that can easily pay their bills but who are looking for a consolidated repayment program. There are consequences to debt management plans and credit counseling programs.
Any payment arrangement or interest rate offered by a creditor through a credit counseling program can be changed at any time and for any reason while you are in the program. It is not a contract or a guaranteed fixed rate.
If you have good credit now, and you are not late then it might make more sense to explore a LendingClub.com fixed rate unsecured debt consolidation loan and get out of debt within three years. The LendingClub.com loans only go to $25,000 but by using that for your highest interest rate debt and then using the debt snowball approach for the rest it should be easy for you to dig your way out without having to pay a credit counseling program to terminate your credit history.