Credit card debit
Hello Terry,
I wrote to you about a year ago regarding my credit card debit- you suggested calling NfCC which I did. They directed me to a company called Parachute. After speaking with an advisor, I enrolled in a DMP. So I am paying less total monthly but my accounts are closed. Today while watching WGN, you passed on info on the NCCC and warned about using companies who negotiate a lower payment while missing payments, in turn lowering my credit score.
So my question is, did I do this correctly and enroll in the right plan or what should I have done?
Terry Says
Yes, you did this correctly. Parachute is a non-profit affiliate organization with the National Foundation for Credit Counseling. Some people just need advice. Others need a debt management program, where they collect money and distribute it to your creditors, who in turn reduce the interest and penalties so you can get through the program. And as part of that debt management program (DMP) your cards are closed.
This all goes on your credit report — but it is far better than a bankruptcy!
