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Hi,
My wife and I are currently enrolled in a debt management program and after reading that a debt management program may be just as bad as bankruptcy I am a little concerned.
The debt management company charges me 55.00 per month to handle my debt. After reading numerous posts it seems that what they do I myself can do that on my own by negotiating with the creditors on my own. Would that be a better option or should I just stick with the debt management company?
Can I legally cancel my contract with the counseling agency, and contact my creditors directly? If so do I do it by phone or do I do it via mail? Will creditors frown upon a change like this? What do you recommend I do and what can i do legally?
Debt management program
Hi Dustan,
Yes, debt management program (DMP) can have bad effect on your credit. It doesn't hurt your credit score, but makes it difficult to qualify for good credit. As for your debts, you can try managing those yourself. You will have to make a budget of all your debts, and your monthly income and expenditure, and then make payments accordingly.
If you want you can cancel the DMP, you can talk to the company about it. However, I am not sure how the creditor's will look at it.
Thanks,
Aaron