Is it possible to pay less outside of a DMP?
Date: Wed, 08/12/2009 - 03:33
My DMP really screwed up & sent payments late (and only partial payments at that). If I get kicked out of my DMP, I know my finance rates change & all that stuff...but is it possible the payments to the creditors would be less than what I make to the DMP?
For example, if my balance now is $5600 & my finance rate gets increased to 28%, my minimum would be $130 (I took my answer that I got by doing $5600 X 28%, then take that answer & divide by 12 (12 months in a year). So my payment would be about $133 minimum...is that correct or incorrect-my calculation.
So is it possible to pay less outside the DMP now that my debts are reduced? I pay $163 on a card on my DMP...just using that card as an example.
For example, if my balance now is $5600 & my finance rate gets increased to 28%, my minimum would be $130 (I took my answer that I got by doing $5600 X 28%, then take that answer & divide by 12 (12 months in a year). So my payment would be about $133 minimum...is that correct or incorrect-my calculation.
So is it possible to pay less outside the DMP now that my debts are reduced? I pay $163 on a card on my DMP...just using that card as an example.
Your calculation is not correct. A credit card has compounding
Your calculation is not correct. A credit card has compounding interest not a fixed interest rate like a car loan. $5600 at 28%, your minimum payment would be $215.15.
Go to bankrate to see calculators for this.
If the DMP is at fault then get out of it and find another reputable company. They can hopefully fix your situation.
Which calculator should I look at? I tried some & didn't get wh
Which calculator should I look at? I tried some & didn't get what you came up with.
We are not allowed to post links so just google minimum payment
We are not allowed to post links so just google minimum payment calculator. It is on the bankrate website under the Debt Management tab.