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supposed to be locked by my having the acct closed

Date: Fri, 04/21/2006 - 09:23

Submitted by set4sail
on Fri, 04/21/2006 - 09:23

Posts: 412 Credits: [Donate]

Total Replies: 6


I hadn't realized there was a difference either. Last summer we started with a debt settlement company, but that's a different story. I know it's a drastic move, but we had some closed credit card accts that we were paying $100 or so a month on, that had been closed for 2-3 yrs, and the balance dropped $500. When I realized I had paid over $2000, on an acct that only had a $2000 balance to begin with I was mad. Later found that when Providian traded the acct to a different portfolio, they changed the interest rate to 36%, from 17%. It was supposed to be locked by my having the acct closed.

Sorry to be negative, just feeling annoyed about stuff like this today.


People use the term "debt consolidation" to refer to different things. However, in the context of this site, a debt consolidation plan generally means the same thing as a debt management plan. A dmp is often referred to as either debt consolidation or credit counseling. This becomes confusing, because taking out a long to repay debt, and sometimes even debt settlement or bankruptcy are all referred to as "debt consolidation" by some people. Just know that, on this site, when people refer to debt consolidation it generally means the same thing as a debt management plan. I think I may just be adding to the confusion here rather than clearing it up.


lrhall41

Submitted by dmj210 on Fri, 04/21/2006 - 10:58

( Posts: 123 | Credits: )


The difference between Debt Settlement and Debt Consolidation is quite prominent. However, debt management Plan and debt consolidation Plan are closely related as dmj said. However, I have met people who are not aware of the fact that settlement is different from consolidation. And there are people who believe consolidation is nothing but a new loan. Even I have met such people who do not know what is meant by unsecured debts???I'm being deviated from the topic, lets come back.

Apparently it seems any plan that helps you manage your debts should be counted as debt management. But in reality Debt Management and Debt Consolidation are more or less same. Go through this section of this website-

http://www.debtconsolidationcare.com/debt-management.html

Consolidation always helps debtor to get their accounts updated in their favor. I'm not sure, if any other DMPs do that or not.


lrhall41

Submitted by stanley on Fri, 04/21/2006 - 11:15

( Posts: 1639 | Credits: )


Essentially both function the same. Some companies have changed the name to avoid being covered under some state's laws, however the Attorneys General look at the functionality, not the name.

The only true difference is if you use a law firm and the firm actually negotiates a new repayment term with your creditors that they accept in writing. The form "dmp acceptance" that creditors send out in connection with DMP's or DCP's do not alter the original credit grantor's terms.


lrhall41

Submitted by on Sun, 04/23/2006 - 08:42

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