Debt Management Program: CDM#
Find a Conversation
Debt Management Program: CDM#
| Wed, 10-27-2004 - 8:02am |
I posted this on the Debt Q and A also ... Has anyone heard of or know anything about this NC-based company? I recently reduced my debt significantly and still have about $10,000 unsecured.I found this company via a link, made a call, and they are a debt repayment company -- I would pay them a monthly fee, and they pay the creditors. They say that they do not report to credit agencies so it would have no affect on my credit which is now around 650+. However, I can't get them to send this to me in writing.. Most importantly, when I asked them to send me information, the only thing they sent is their contract, forms, etc., and lots of pressure - daily phone calls, etc. The company has a website and it LOOKS ok (but so did Ted Bundy ) :-) ... just not sure ...any thoughts?
Many thanks.
Many thanks.

Any company that won't put what they tell you in writing, and is pressuring you to join, sounds like a bad deal to me.
This company may not report that you are using them, but if your creditors agree to your paying them through a DMP agency, with reduced rates, rest assured, some of THEM will report it, regardless of whether the DMP agency does. They will also send you a letter stating that they have approved your participation in a DMP, sometimes specifying the rates, and usually telling you that your account has been closed. All of this is *good* - it means that the creditor does, in fact, do business with that particular agency. There *will* be an effect on your credit rating, but it may be mixed: some future creditors will consider it a positive that you got on a DMP and paid everything on time, others will judge that you aren't responsible with credit, and others don't take it into consideration at all.
When you are on a DMP, you probably will not be able to get any more unsecured credit. That's good, since if you need a DMP you shouldn't be taking on more credit anyway. You *may* still qualify for secured credit, such as an auto loan. The chief advantage, IMO, of being on a DMP is that you will get lower interest rates and you *may* pay less each month - no guarantee of that, though.
You can find a reputable DMP agent through CCCS or NFCC. You can also find *disreputable* agents through those organizations! A few months ago, when I decided that we needed to get on a DMP, I called an NFCC-affiliated agent, and they were awful. The woman who answered the phone must have been reading from a script - she kept telling me, "Yes, I know, you're overwhelmed and you need help" and I said, "I'm *not* overwhelmed, and I know exactly what I need." When she wouldn't even give me her name, I hung up and called another agency. The person who answered the phone there gave me her full name and direct phone number, explained the plan, what I would have to do, *and* how they make their money. She gave me a phone appointment with another agent who then set up the whole plan. They treated me like a mature adult, rather than some frantic idiot.
The main points here: don't be afraid to call several agents until you find one you like; don't expect to get something for nothing (I had to provide a LOT of detailed budget information and pay the same amount every month but at a lower interest rate); don't do business with anyone who harasses you.
Kelly
I don't know anything about the company you wrote about but I wanted to give you the info on the company I've been using. I've been with them for almost 5 years. I started out with about $25,000 of credit card debt and I'm down to only $1,200 and I'll be done in 3 months (finally)!!
They do the same things the company you wrote about do. They negotiate with your creditors to lower your interest rates. You send them one check once a month and they pay your creditors for you.
They're located in Syosset, NY. Visit their website at www.americandebt.com or call 1-800-424-9965.
I know there are scam companies out there. My sister sent money to a company and they never paid her creditors and she was out of luck unfortunately. So, I just wanted to give you some info on my experiences so at least you know the company is legit.
Hope this helps and good luck!
Winnie
Just my two cents.
MYM