Help - Credit Counselling Budget Putting me Further in Debt

Showing negative or affecting your score or both? did your score drop because I have been on a DMP for 6 mos and while it states paying through DMP my score has not been affected. If your credit is already severely damaged and you are o.k. with the settlement process(collection calls,poss.lawsuits), or you just plain can't make the payments by any means, then let them go. The affects on your credit only matters if you are currently in good standing with an above average score. While I'm all for repaying my debts that we agreed to, we can't pay if the payments are outrageous and they don't want to bend. DMP programs don't typically include secured loans attached to things, but they have other programs and resources to assist. The problem is if you don't have qualifying income they will be of little help. Settlements won't help with secured loans either. The real only secured loan help is the dreaded bankruptcy(only for the worst case scenarios, pls), but if you are seriously considering settlement then you may be closer to that then I know. I only tough out my DMP for employment reasons(clearance) or I would have never signed up because while the interest is lower the minimum payment amount only saves me about 10% of what I was struggling to pay in the first place. Tough times means making tougher decisions. Hope this helps.

Pulling out of DMP. Your rates go up to the maximum allowable by law per your initial agreement. default rate.

i know its a struggle but its in your best interest to stay with the management program. im confused about it hurting your credit. everything i have heard tells everyone that it does not effect your credit. that concerns me.

i think i have also heard it affects credit but i am not sure.
i was working with CCS but it was too much for me at the time and i filed bankruptcy. i am not saying that this is something you should do, it just is what worked for me.
if i were you, i would try to stay with the program, to keep your rates low.. perhaps you could find a part time job to help out? i know it's hard, many of us have been there :(

I know when I was enrolled they certainly told me it wouldn't hurt my credit - but since enrolling (only 3 months) my credit score has dropped almost 120 pts and I have had no additional loans or late payments or anything - the only thing that has changed on my credit report is the accounts are now closed (which I did on my end and was also told wouldn't hurt my report) and reflect the remark of "enrolled in credit counseling"

I am in no way at the point of bankruptcy - honestly the problem is the secured debts (payments equal 402.00 a mo.) which can't be included in my plan. If i redirect the $289.00 that I'm paying on the counseling program I can pay off these loans by August (because so much of their cost is interest that will be reduced if I pay extra).

How long is it before a creditor "freezes" an account and is willing to settle? I'm asking not to wiggle out - but just wondering how long before they will stop adding on late fees etc? If I can get the secured loans paid off then I can start paying the CCs off fairly quickly. Even at 29% interest it's cheaper than the secured loans and especially with my house being paid off soon, I'll have extra monies.

Sorry - missed the question - I do work one small Part-time job in the evenings after my regular job - it brings in an extra $200 or so per month. Additionally, my husband works pt after I get home (he was downsized from his university job and stays home during the day with our 11month old) doing lawns & similar little tasks.

We're currently 5 months pregnant and so will either have another one at home or else day care costs on two infants if he's able to find work (to say we are in a depressed area would be a severe understatement...our county had more than 60% of residents on full state aide BEFORE the recession).

120 points is a lot. The dmp affects your credit not because it in itself is negative, but because the debt to available credit ratio is thrown off more than it already is because the accounts are closed so you repay the debt and are debt free, not being able to spend as you pay them down. You should have been able to keep an account open and if you have other accounts that were submitted for the dmp but refused by the creditor, they can remain open as well. All accounts that are listed on your credit report at the time of filing are to be SUBMITTED for inclusion per creditor's wishes to lower the rate and waive fees. If there is a creditor or two that say no to the program than use of those accounts can be used and maintained as usual. Beware that those % could be hiked up when they do a periodic check, and if that happens you may have to add the account that accepts the dmp and do your best to pay the other. If you are on the program, I assume it is to repay the debt with as little adverse affects as possible on your credit, so you will not have to wait years after repayment to regain a positive standing. As you pay down the debt on the program you will begin to see less of a negative effect as far as points go, and you will be paid-off and still have at least 1 card with positive and long history which is favorable for future and continued credit. Any other "program" options would require years of negative credit not just while on the programs but after completion. DMP's almost instantly give you positive results, i.e. 2mos compared to 7 yrs, not to mention it's only a mild credit score hit compared to others.
Secured loans are not included in DMP's. If you have 7-9 yrs to wait for the problems associated with settlements then leave the DMP, stop paying the cards, save your money and settle yourself. If you leave the DMP your % will go to the maximun % allowed or very close to it. But, having said all that, all situations are different and require difficult decisions. Be strong and good luck!
Let us know how everything goes!