It’s been about three weeks since I officially started my Debt Management Plan (DMP), and it feels amazing to see my creditors willing to work with me by lowering my interest rates. My balance is going down, and my credit score is improving so quickly! (Results vary by person.)
I never missed a payment on my credit cards, so I was able to close them all in good standing. Then, Money Management International (MMI), a nonprofit organization, stepped in to send my plan and negotiate interest rate reductions based on each creditor’s guidelines. I had been struggling to pay the minimum payments for the past two years, but now I’m paying significantly less—less than half of what I was originally paying which leaves me room to save, handle other emergency expenses, and finally breathe. My only regret is not enrolling in this sooner!
I understand that a DMP isn’t for everyone, and for some, bankruptcy may be a better option. But if you can manage the DMP payment plan, I think it’s definitely worth considering!
How were they persuaded to decrease them?
Since my creditors drastically reduced my interest rates, my minimum payments were likewise drastically reduced.
Since my creditors drastically reduced my interest rates, my minimum payments were likewise drastically reduced.
To avoid going via an intermediary, you can speak with your lenders directly. Request a hardship initiative.
They will go over the payment plans and their intended new interest rates when you complete your initial assessment.
Right now, I’m also on a DMP. Except for Discover, all of my creditors were on board. Every time the non-profit submitted them a proposal, they turned it down. In the end, they consented if I kept making my regular minimum payment at a reduced interest rate. It’s not that much lower, though.
When I contacted Discover directly, they offered me a six-month interest rate reduction and a payment reduction of roughly $80 per month in exchange for locking my card during that period.