Debt Management Plan or call to get lower APR's myself?
Date: Wed, 05/02/2012 05:01
I really need to start getting serious about paying off my debt. I have around 38k, most of which is with B.O.A., Chase, and Discover. My APR's range from 14% - 19%. I have never missed a payment in my life and have decent credit scores (high 600's - low 700's), which I would like to avoid ruining.
I try to pay a little more than my minimum payments, but it is a struggle. I am barely squeaking by every month. I have looked into Care One and their debt management plan. They have an A+ rating with the BBB and I've heard really good things about them. They negotiate with my creditors to get a lower APR, then I make one payment to them each month and they handle everything else. They have a $35 startup fee and a $50 monthly fee (from what I understand). My question is, am I better off contacting the creditors myself to try and get a lower APR or is it worth paying Care One $50 a month to let them handle the dirty work?
If I do go with Care One's DMP, how will this affect my credit score?
If I choose to contact the creditors myself, can anything bad come from it (other than them denying my request)?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.