What are the effects?

iVillage Member
Registered: 10-16-2007
What are the effects?
1
Sat, 03-14-2009 - 8:36pm
WHat are some of the effects of doing a debt management plan? I am seriously considering doing a DMP but I really don't know if I want to take the risk. I think things would just be easier to be in one lump sum every month.
I know that it will show on my credit, but I have also heard that some creditors look at that as a positive. I don't know what to do. Thanks for any insight.
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iVillage Member
Registered: 08-04-2008
Sat, 03-14-2009 - 9:47pm


Well the two downsides I see are:
A debt management plan is not accepted my many credit card companies, and you can do it yourself without the extra fee.

As a first step I would call your credit card companies to see if they will negotiate a payment plan with you. You can even tell them you have been to a debt management agency but would like to work with them yourself if you can.

Oh, very few people become debt free using those companies, as well, so their success rates are not very good at all.

-ski