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Money Management international Gave Me a Monthly Payment That is Too High For Me. – Valeria

Valeria

“Dear Steve,

After reading your section on completion rate, I am terrified of consolidating my loans. Sounds like you are happier with bankruptcy and I don’t think I need to go that route. I am about $50 thousand in debt. I can no longer make payments on one of my credit cards in order to get gas and groceries.

Do you know of a reputable debt management or consolidation company in which I will not be sued by my lenders during the process?? I recently contacted Money Management International. They gave me a monthly quote which they would deduct from my checking acct. The quote was a little high for me and I want to see about renegotiating with them. Do you know if this is a good company?

Valeria”

Dear Valeria,

Money Management international is a big debt management company and not prone to underestimating your debt management payment to get your money. There is no advantage for them to do that. At the same time they want people to enter their debt management program so they can make money off of you.

If the payment they gave you is too high for you I think it is actually a reflection of the reality of your underlying situation. You are too in debt.

Any credit counseling company that promises you a payment much lower than what Money Management international told you is going to be lying to you to get a few months payments out of you before the whole plan comes tumbling down with creditor rejections.

The payment by any recognized credit counseling company is going to be determined not by what you can afford, but by what the creditors want. That’s the figure that Money Management International gave you. There is no negotiating. It is a formula that is determined by the creditors, not the credit counseling company.

The article you read on completion rates is discouraging because it is real look at what credit counseling companies don’t tell the average person.

READ  I'm Already in a Bankruptcy and Can't Afford My Payments. Will I Have to Give My Car Back? - Dawn

It seems to me that you are trying to bargain with yourself to find a solution that is in line with what you want and gives you protections against your creditors. This is the best position for a consumer to be in to get taken by any one of the many companies out there that will promise you everything, because that’s what you want to hear, and deliver nothing. You are a prime candidate to get scammed.

Let’s say that the monthly payment could be just what you could afford. Where does that leave you? If you are just making it month to month, not able to save money, not able to build an emergency fund, and not prepared for the next financial emergency, you are a train wreck waiting to happen.

Without the credit cards to fall back on to help makes ends meet, it will only take one unforeseen, accidental, or bad luck event to throw your debt management plan down the garbage disposal.

I urge you to not make a decision about if bankruptcy is or is not right for you until you go and sit down in front of a bankruptcy attorney and discuss your situation. Don’t make this decision based on an emotional assumption, get the facts.

And after your meeting with the bankruptcy attorney, come back and give me an update in the comments section. Let what you learned percolate in your head for a few days and then make what will be a better and more informed decision about what is the best course for you to follow.

morehelp1

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.




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.

3 Comments

  • Dear Steve- Thank you for your response. Everything you mentioned makes sense. Also, one of my biggest concerns was just what you said about if anything goes wrong, I will not have any money left for savings, emergencies, or anything, and that is what worried me the most about consolidating. I feel that just as you mentioned, bankruptcy for me right now is more emotional than anything; however I discussed what you mentioned with my sister and a good friend and they totally felt that you were right. I feel like a huge weight off my shoulders, but I am still scared. My next step is to talk to an attorney. I live in Miami; not sure if you know of a good affordable attorney here; also, I need to learn about bankruptcy and figure out what I need to brace myself for. Please advice me where I can find out more about it. Thanks so very much.

    • Valeria,

      I’m so glad you discussed this with people you trust and love. Confiding in them will be critical to a speedy recovery.

      As far as finding a bankruptcy attorney I can’t give you any specific recommendation. My best advice is to call three local offices and find one that treats you in a manner that makes you feel comfortable. Make a free bankruptcy consultation appointment and go in to meet them.

      The technical part of the bankruptcy is straightforward, but good communications, care and client service is a harder commodity for professionals to master.

      Right now you are probably feeling like a loser of failure in some way. I really think you should listen to my interviews with people when I ask them what they think of people that go bankrupt. Click here to see the list of recorded interviews.

      The only person that is going to beat you up over this, is you.

      The attorney will gladly answer all your questions.

      You’ve got to promise me to come back here to the comments section and give me updates as you move through the process.

      A really big hug for you.

      Steve

  • Hi Valeria,

    I have worked with Money Management International (MMI) for many years and am grateful to have the opportunity to comment on your letter.

    MMI is a nonprofit organization and debt management is only one of the many services we provide. We understand that a repayment program is not right for everyone; we urge people to explore their options and make informed decisions based on their specific situation.

    If you wish to establish a repayment plan, perhaps your counselor can further help you to identify areas where you might be able to reduce expenses. No matter what path you choose to take, please know that we are here to support you. For example, I encourage you to take advantage of our many free educational tools such as Webinars, Webcasts, and videos.

    Good luck and please let me know how it goes.

    Best,

    Kim McGrigg
    Community Manager, MMI
    .-= Kim McGrigg´s last blog ..Another consumer reporting agency worth knowing about =-.

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