“Dear Steve,
I have been enrolloed in the program for about one year and have been current with payment thus far. However, my early income has not been reduced by 60% and am concerned about keeping up with the monthly payments in addition to all of my other living expenses. Not sure it can be done.
What are my options?
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
Ro”
Dear Ro,
One of the problems with any credit counseling or debt management program is that in order to get out of debt you need to make all the payments and this is typically over a five year period.
Facing a reduction in income I can see how it would be difficult to keep up with the current Money Management International payment. Your best options are to:
- Call your MMI counselor and ask them if there is a hardship program with your creditors that might cut your payment.
- Attempt to increase your income or lower your expenses further to free up enough money so you can make your payment.
- Click here to find a local bankruptcy attorney and make a free appointment to go in and discuss if bankruptcy is right for you in your current situation.
One thing is for certain, it would be unreasonable for you to continue to make credit counseling payments if MMI can not lower your payment or you can’t increase your income.
I have already contacted MMI and unfortunately you have to be enrolled in the program for one full year before a reduction or hardship can be discussed. What are your thought on Debt Reduction Programs? My credit would be in shambles and I run the risk of the harrassing phone calls until my creditors agree to settle. This may be my only option at this point.
Ro
Ro,
Before you do anything, read The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, and Bankruptcy.
Once you read that article come back and let me know what approach seems to make the most sense in your current situation.
So what did MMI advise you to do?
Steve