DMP Question

Creditors don't want you to file for bankruptcy. In that case, they have to post your accounts as bad debts. So, a negotiated amount is better than getting nothing.

Lawsuits are not always the right choice for the creditors. There are huge court costs and fees in filing a lawsuit. It becomes a complete waste when the debt amount is not enough to cover the charges.

In 90 out of 100 cases, creditors will accept the proposals, but you have to wait for some time to see this happening.

Is it better to try to get something done with the creditor instead of doing a dmp??

Well, if you can manage paying the creditors on you own, I will highly recommend that. Sometimes, people are not able to negotiate lower interest rates with the creditors. They end up paying high interests along with the fees and other charges. If you are able to get a better deal with your creditor, don't look back. You will get the maximum credit scores for paying your debts on your own.

debt consolidation is to be considered as a repair tool. It does not get the same weight when you pay on your own.

Its possible they can lower the monthly payment but then raise the rate therefore I would end up oweing more right? I'm not a very good negotiater which is why I'm kind of hesitant to do so. My dmp actually started yesterday and 1st payments were sent out today and I got a call from one of my creditors wanting to work something out.

A default will certainly be bad especially after the creditor has offered you some benefits. When you are in a consolidation plan, the rates are already negotiated. It's good when you are guided by a professional, especially when you are unable to get the best in negotiations.

Creditor is calling you because they want to see if you can pay something more than what your consolidator has sent. At this stage, if you offer something better and the creditor gets annoyed with the proposal already placed by your consultant, it will result chaos. Make your mind and let your consolidator either handle your accounts or you do.

Well payments from my dmp were sent out today and I got a message from one of my creditors stating they wanted to do a refinance of some sort to bring my payment down. Should I not call them and just let the DMP handle everything? I just don't want to call and end up agreeing to something that I might regret later.