s a Debt Management Plan the best option?
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!
It's common for your score to drop once you're in a DMP. Usuall
It's common for your score to drop once you're in a DMP. Usually your lenders put you on a hardship plan. You can certainly discontinue the DMP and try to settle the accounts yourself. Will you be able to save 50ish% of your total debt in anywhere from 3 to 6 months if you stop the plan?
Review Your Plan
You have a very valid point. Many times people can negotiate there own debt repayment plan and save themselves a lot of money in the process. I consider a debt management service to be the step prior to bankruptcy. If you can not make your minimum payments and you are racking up late fees then you should consult a debt management service.
At my company, we work with individuals that can still afford their minimum payments, assist you in contacting your creditors, and put together a plan for you. We then work with you to help change your spending habits and try to reduce your monthly fixed and variable expenses. If you are interested, I would be happy to review your plan and let you know what I think you can do.
Just contact me from my website at http://reviewyourplan.com. I wish you the best of luck.