Credit Counseling Debt Management Programs
Entering into Credit Counseling with a debt management program?
I am entering into a debt management program with a Credit Counseling Company. I have about $17500 in debt & my payment with the company would be about $400 a month.
My question is, would creditors be willing to accept 1/2 of the minimum balance that is due usually…I have 3 cards I’m in debt with…one is $285/month, $185/month, $165/month. I’m already 2 payments behind with 2 of the cards. Would the credit card companies accept a personal offer of 1/2 the usual minimum for a certain time frame? So I’d offer them $142.50, $92.50, $82.50.
Or since I’m already behind on payments should I stick with the debt management program (I just signed on with them & have to make my first payment on 9/28) & wait until I’ve been in the program a few months & then try to talk personally to my creditors & see what I can offer at that time??
I work for a pretty large global bank. I would stick with the CCCS program if I were you. I have worked in several areas such as auto loans, corporate/business credit cards, private label cards, co-branded cards, unsecured lines of credit, etc. There are hardship programs out there for banks to offer you, but I don’t know if it would cut your payment in half, if it did…It wouldn’t be a very long term plan. Many hardship programs are not for the life of loan/balance. The revenue comes from finance charges and late fees, which many banks do not want to part with, but all banks are different. Keep in mind, these CCCS companies have working relationships with these banks and usually get you a decent deal. Just make sure you are not signed up with a debt settlement company….Chances are, you’ll get sued.
Credit Counseling & Debt Management 1
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