CC rejected DMP proposal
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CC rejected DMP proposal
| Sat, 10-11-2008 - 5:10pm |
Hi everyone. What would you do if one out of 7 of your CC's rejected the proposal from the DMP company? Barclay's Bank is awful. They keep calling my house. Last time I flat out told them I could not afford to send them more than $237 a month. They want $308! Not a big difference is it?! The DMP is set up to send them that much and I can't afford to send any more. I told them $237 is better than nothing isn't it?? They are also charging me 20.9% interest! I'm going to have the DMP company (MMI) keep contacting them.
HAs anyone had this problem before when working with a DMP? Should I just keep sending the $237 and not bother sending more?
I'm fed up with CC's. I'm already paying $1600 a month to pay them all, I can't pay a dime more.
Help!


















I think it depends on how bad the situation is. This is generally bad advice, but it has saved my hide in the past so I'll pass it along. We've been in WAY over our heads before, and instead of trying to juggle cc payments we just stopped paying. They racked on the fees and closed the account, then sent it to collections. At that point, we were no longer paying interest every month and the collection agency was happy to accept whatever we could give them. We've settled many debts for just 40-60% of what we originally owed, too. The fees they add for closing the account may be less than you'd end up paying in interest, but even if they're "extra" you're still able to recoup with a settlement. Some companies have settled with us and then taken payments on the settlement! Another note about collection agencies: if you ask them not to call you anymore, they are required by law to stop calling unless they have an update in the status of your account. For example, if they are pursing legal action, they can call you to tell you that. They can't call you every day to remind you that you owe them, as if you'd forget. =c) But again, that's not generally good advice. That's just a step ahead of bankruptcy!
As for this company, try this. Send them the amount you can send them, and on the memo line of your check write a note "payment to be $237.00/mo payable by the 21st" (or whatever). If they cash that check, they create a contract with you on those terms. They'd have to reject the check as a partial payment and return it to you if they didn't agree, and few pay that much attention. This works in my state and I was told that it worked anywhere, but there may be a clause in your cc agreement that supercedes it.
I hope you can work something out with them! Good luck.
Goal: Debt free by January 2010 so we can build our dream home!
Did your credit score go way down after going to collections?
I had a pretty bad experience w/ one of those agencies when I tried to get my mom straight through one. I'm not a fan to put it mildly, LOL. (It wasn't the same one, though).
I'm not sure about the credit score, but here's what happened. It'll answer that question and then some! We applied for a mortgage (our first) and the banker almost laughed at me and said we were wasting his time and really had no choice but to declare bankruptcy. Well, nothing fuels me more than being told I *can't* so I went to work and did a lot of what I described in my message. We were already behind on our payments so within a month or two everything went to collections. After all of my negotiations and settlements, we had absolutely no cc debt and one car payment. No other history. Our accounts were bad but all paid off. Six months after the first loan application we applied with a different lender and the guy told me he'd never seen a credit report so "clean" in his life in terms of not having to do ANYTHING to get a loan and we were approved immediately. I'm not sure how it all affected the score, but even closed accounts and paid collections didn't stop the approval!
Goal: Debt free by January 2010 so we can build our dream home!
I don't know much about DMP, but isn't the point that they stop the lenders from calling you directly?
And, I'd also be wary of letting credit score go more than you have to right now. The other poster was able to get a mortgage, but, unless it was within the last 6 months, it was a much, much more lax lending environment.