Would it be wise to withdraw from DMP and let the payments lapse and try to settle later?
Date: Wed, 03/17/2010 - 20:55
Hi Guest, sorry to know about all these things you are going thr
Hi Guest, sorry to know about all these things you are going through. Well skipping of monthly payments in DMP, results in high drop out rates. I would suggest you to call them up and explain the situation you are into before taking any step.
You can talk to your credit counsellor and explain your situatio
You can talk to your credit counsellor and explain your situation to him. He might agree to lower your payment to a more comfortable rate.
I'm assuming that you have already spent quite some amount in fees and other charges on the DMP, which you might not be able to recover if you drop out of the plan.
Moreover, you must be enjoying lower interest rate on your loans while you are on DMP, which would again go up once you discontinue the program.
Also, your credit score would be shot when you'd default on your loans. Further, there is no guarantee that the creditor would agree to accept a settlement later.
I'd suggest you to evaluate all your pros and cons wisely before making a decision.
If your back is to the wall and you're drowning, then I would de
If your back is to the wall and you're drowning, then I would default from the DMP. If they cannot lower the payments to where you can afford them, then withdraw from the program. Your credit report takes a hit anyway being in a DMP. After I defaulted, HSBC sent me a letter offering to settle at 45%. I jumped on it because it was a small balance. Eventually, I worked out a settlement with Citibank and BoA. I kept paying my smaller ones (American Express, Capital One). Discover negotiated an interest rate of 7.99% for this year and the payments are $77 a month. So they WILL negotiate but it's after you default and the accounts go over 90 days.