I have been enrolled in Green Path’s debt management plan (DMP) for the past four months. Everything is going great, and with the lower interest rates, I’m finally starting to reduce my debt.However, I have to pay $50 a month to use Green Path’s service.
Can I simply pay off my debts and terminate my Green Path contract to avoid having to pay the $50 monthly fee?
According to what I understand, you cannot participate in a creditor forgiveness program without a DMP in place. To avoid using an intermediary and make payments directly to your creditors, you can try calling them.
The DMP’s benefits will end if you terminate it, and most creditors will reinstate your old conditions. Furthermore, after you cancel, the majority of creditors won’t even think about re-enrolling those same accounts on a DMP. (A credit counselor here.)
I’m grateful. Yes, I asked the same question when I phoned Green Path today, and they replied in the same way. It appears that paying the $50 a month will be preferable to interest rates skyrocketing again. Eek! In an effort to lower the monthly charge ($10 for each creditor), I’ll try to pay off some creditors early.
Although $50 a month may seem expensive, it’s usually worth it when you consider the total amount of interest you’ll save over time. Attempting to pay off the accounts sooner and utilizing the reduced interest rates are highly recommended. I wish you well as you pursue debt-free living!
Although $50 a month may seem like a lot, it’s usually always worth it when you consider the total amount of interest you’ll save over time. Attempting to pay off the accounts sooner and utilizing the reduced interest rates are highly recommended. I wish you well as you pursue debt-free living!
At the age of 25, I’m still getting used to managing my own credit card debt and student loans. It appears that you have used Green Path to manage your debt in a proactive manner. The thought of avoiding that monthly charge appeals to me because I’m also looking for methods to reduce expenses while paying off my debt. It’s a difficult decision, but I can relate to it because I have to make similar financial decisions.
Yes, you can pay off your debts directly and terminate your DMP with Green Path, but you need first take a few factors into account. Your current lower interest rates might be linked to the DMP; if you were to cancel it, your debt interest rates might increase once more. Ask your creditors if they will accept the lower rates in the absence of the DMP before making a decision. If they will, you may be able to avoid paying that $50 monthly cost by canceling the DMP and handling the payments yourself. If not, you might wish to continue in order to maintain the advantages of reduced interest.
Making progress is undoubtedly satisfying, but those costs can mount up. It is wise to consider your choices, such as making a direct payment or investigating alternative debt management schemes.
It really depends on how comfortable you are and how much you appreciate the help that Green Path offers. It can be worthwhile to forego the fee if you feel comfortable making the payments yourself.