| Message |
Author |
 Posted: Mon Apr 28, 2008 2:22 pm Subject: Is a Debt Management Plan the best option? |
|
|
Hello all....
I am currently in a debt management plan where they deduct a specific amount of money from my account every month and pay my credit cards. I have been with this company for more than a year and it seems as if my balances are not going down a whole lot. I had thought that by getting into a debt management plan, your credit score would increase. Mine is actually going down! I'd like to try to work out something with my creditors myself and get out of the debt management program completely. I do not feel as if they are really helping me. Any advice you could provide would be great!
|
|
Bublefan1
Joined: 10 May 2007
Posts: 188
Debtcc Points: 2962
|
|
|
| Posted: Mon Apr 28, 2008 6:53 pm Subject: |
|
|
There are a lot of "debt management" companies out there that scam people out of there hard earned money by making them believe that all of there money is going to pay down their debt but in a lot of cases they charge you outrageous fees that they take out of that monthly deduction they take from your account. I don't know if this is the case but you should always beware when dealing with debt management or consolidation services. And I am sorry to tell you but yes it greatly hurts your credit score when you get involved with a lot of these companies. I would definately try to get back on track yourself if possible but best of luck to you either way! 
_________________
www.DiYCreditGuide.com
|
|
smckaybiz
Joined: 19 Jan 2008
Posts: 87
Debtcc Points: 2146
|
|
|
| Posted: Tue Apr 29, 2008 3:19 am Subject: |
|
|
Hi Buble, first just be informed, that debt management programs can't do miracles overnight. This is basically a gradual process of lowering the outstanding amount, and hence, may take around three to four years to repay the whole amount depending upon the volume of loan.
You're probably receiving monthly statement form the management firm on how much they have repaid. Ask the representative of the firm for any entry that is doubtful.
Regarding your credit score, it'll improve gradually, if you can maintain regular payments in the program.
_________________
Register today to cash in debtcc points.
|
|
AliceO'riely
Guest
Debtcc Points: 100
|
|
|
