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i'm about to sign up with a debt management company. i did a counseling session on line that lasted about 40 minutes and was recommended this would be the best way to go. I was faxed a copy of the complete agreement, including proposals to the cc companys to be negotiated. this company wants a $75 start up fee and $50 month to handle 15 accounts. They also want to collect the first months fees to the cc companys to start the process. that payment is towards the cc compnies first months fees, not an up front fee to the dmp company. Is this pretty much common practice among the dmp programs? and again thanks to all who have read my posts and offered advice and encouragement!!!this means so much to us in this tough situation!!

Posted: Sat Nov 17, 2007 9:27 am Subject:

I think this is common practice..It sounds like a good deal, please make sure that you have checked with the BBB for any complaints before starting with them! Good luck! Very Happy

Guest · Posted: Thu Nov 22, 2007 6:08 am Subject:

are you sure that your first months payment is not a fee? what does the language say in the agreement. You said the first months fee etc. I just want you to know that the language they use is very misleading. They will say "your first months payment initiates the opening of your accounts with the creditors" meaning, we take that and then make contact with your creditors. You will have a set up fee of $75.00 and your first months payment establishes your account with the creditors etc. Just be careful with CCCS and call after your first payment is made to verify the cards got paid otherwise everything changes and your 7 year deal is now 10.

Posted: Thu Nov 22, 2007 7:34 am Subject:

Flyman...this is how my program is running also. You should at least recieve quarterly statements from them that will also show all your payments made to each company. After the first month I continued to recieve statements from my credit card companies showing the payment made and balance due. After about 3 months I also recieved letters from 3 of my 4 charge cards telling me they were reducing interest and removing some late fees and over limit charges. Good Luck!!

Posted: Thu Nov 22, 2007 7:55 am Subject:

Good luck Flyman!

Mine ran slightly different. I have a lot of debt, so they charged me $356 a month, the first $356 went to the dmp people, then the next $356 went to the CC. They are charging a $35 fee out of the $356. If I make all my payments on time, I get back the initial $356 that I paid at the very end. I got letters from my creditors saying the proposals were accepted & what happens if the DMP gets cancelled. Actually Chase sent me a really nice letter congratulating me on going into a DMP!

Its sounds like you have a great deal-just double check the contract and the BBB & use the search feature here (not to mention Google too!)

You sound like you are on the right track! Congrats!

Posted: Thu Nov 22, 2007 6:59 pm Subject:

Yeah I agree with everyone here...it does sound like your dmp company is working with you and accommodating you legitimately...I do hope that you not only check with the BBB but google your company as well, because you may find other reviews out there. I remember that my company used the first month's money immediately, putting it towards my cc companies and i had to pay a $30 fee to the company for handling 7 accounts. so $50 for 15 is very very good I think. good luck, sounds like everything is going well for you, just make sure before you go ahead because this management program will take some time and you want to be sure you invested not only your financial resources wisely but also your peace of mind as well!

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