Ask The Get Out of Debt Experts Credit Counseling

My DMP Isn’t Going Well. What Are My Options? – Karen

“Dear Steve,

I have been on a DMP with Hess Kennedy/First Consumer Debt Consolidation for about 3 years. Debt started around 70 k and is now about 20k. I am looking to get them out of the picture (creditors didn’t receive last month’s payment- a whole other story.) All of my creditors except one, Bank of America, are willing to offer me the same APR, payment, and terms. Bank of America states that due to the recent credit card legislation, they are prohibited from offering me another payment plan because I am on one already. We have two cards with Bank of America with a total balance of about $7k.

What are my options? Do you think there is someone at Bank of America that could make those arrangements? I have made several phone calls to Bank of America reps but all seem to say a variation of the above. They say if I drop the DMP and send them the payments directly, my APR may increase to what it originally was, but that was so long ago they can’t tell me what that is! I am not asking for them to renegotiate a new deal- just to finish paying out what I started. I’ve thought about a balance transfer to an existing line of credit, dropping the DMP and suffering the consequences of a higher APR, or writing an angry letter- but none seem like great options.

Karen”

Dear Karen,

I’m not surprised that the Bank of America representatives are giving you conflicting information. Dealing with debt at the banks is such a process of timing and policies and procedures that it’s tough for a rep to give you a definitive answer based on a conversation.

Before you take the risk of doing anything rash we first need to consider if the payment glitch was a one-time event and can be repaired or we need to get you on a different path.

See also  I Have Accounts With AMEX and B of A That Are About to go to Collections. - Edward

Seeing how you’ve already been on a DMP for so long and you have terms in place but you are unhappy with your current provider, for obvious reasons, I would first suggest a switch.

I like the folks at Cambridge Credit Counseling and if anyone can help you through a transition to a new program, they can.

Rather than drop one program and pick up another one, with some coordination with Cambridge Credit Counseling a transfer can be made and you will continue to receive the credit counseling terms. Who knows, the terms may even be more favorable now? Wouldn’t that be great.

Let’s start first by running the transfer idea past my friends at Cambridge. You can click here to contact them.

Once you do that and hear what they have to say, then come back and post an update in the comments. Sound reasonable?

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.




About the author

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.

2 Comments

Leave a Comment

Scroll to Top