Comments on: How Can I Lower Credit Card Payments? http://www.visioncredit.org/how-can-i-lower-credit-card-payments/ Your Nonprofit Credit Counseling Organization Sat, 13 Mar 2010 20:07:39 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Kenneth Long http://www.visioncredit.org/how-can-i-lower-credit-card-payments/comment-page-1/#comment-3406 Kenneth Long Mon, 27 Apr 2009 14:03:33 +0000 http://www.visioncredit.org/?p=968#comment-3406 Dear Sonya: Debt management plans are made possible by the creditors that participate in these programs. Each creditor provides a certain set of benefits. There are many creditors that do not reduce the payment or interest, and there are even some that generally require an even higher percentage due each month (although this is becoming less common). If your quoted debt management plan payment is not lower than what you are currently paying, then you are likely in a scenario in which you are already receiving the lowest minimum payment requirement from your creditors based on the amount of debt that you have. This can be common for some of the best credit card customers, where the creditor rewards them with the lowest minimum payment calculation possible. Most people who qualify for the program are able to see a reduction in their monthly payments. If you are already receiving the preferred lower payment requirement, then it is true that your minimum payments likely would not drop any further through a debt management program. Your minimum payments are probably already lower than most of their other cardholders. Your counselor at MMI will likely discuss methods for helping you reduce expenses and find new sources of income. While overtime is probably not an option right now, a seasonal part-time job might give you enough extra cash to pay down one of your accounts, thereby lowering your total monthly payments. Selling unneeded assets could be a very good option, since it may be done without a change in lifestyle. Yard sales and online auctions are possible ways to accomplish this. Whatever you decide, please steer clear of <strong>debt settlement companies</strong> that may lure you in with the "promise of a lower payment." Legitimate nonprofit credit counseling organizations like MMI will help you find the best option and support your decision, while for-profit debt settlement companies will ruin your credit, put you deeper in debt and fail to protect you from legal action. Dear Sonya:

Debt management plans are made possible by the creditors that participate in these programs. Each creditor provides a certain set of benefits. There are many creditors that do not reduce the payment or interest, and there are even some that generally require an even higher percentage due each month (although this is becoming less common).

If your quoted debt management plan payment is not lower than what you are currently paying, then you are likely in a scenario in which you are already receiving the lowest minimum payment requirement from your creditors based on the amount of debt that you have. This can be common for some of the best credit card customers, where the creditor rewards them with the lowest minimum payment calculation possible. Most people who qualify for the program are able to see a reduction in their monthly payments. If you are already receiving the preferred lower payment requirement, then it is true that your minimum payments likely would not drop any further through a debt management program. Your minimum payments are probably already lower than most of their other cardholders.

Your counselor at MMI will likely discuss methods for helping you reduce expenses and find new sources of income. While overtime is probably not an option right now, a seasonal part-time job might give you enough extra cash to pay down one of your accounts, thereby lowering your total monthly payments. Selling unneeded assets could be a very good option, since it may be done without a change in lifestyle. Yard sales and online auctions are possible ways to accomplish this.

Whatever you decide, please steer clear of debt settlement companies that may lure you in with the “promise of a lower payment.” Legitimate nonprofit credit counseling organizations like MMI will help you find the best option and support your decision, while for-profit debt settlement companies will ruin your credit, put you deeper in debt and fail to protect you from legal action.

]]> By: Sonya Prear http://www.visioncredit.org/how-can-i-lower-credit-card-payments/comment-page-1/#comment-3321 Sonya Prear Sat, 25 Apr 2009 17:21:21 +0000 http://www.visioncredit.org/?p=968#comment-3321 I have been speaking to a counselor at Money Management International who is telling me that, under a Debt Management Plan, creditors will not reduce the monthly payment amount, just the interest rate in order to facilitate faster pay-offs. That doesn't sound right to me, and contradicts what is stated in this article: "Their debt management programs are highly effective in rolling back your interest and lowering your monthly payments so that you can repay debt faster with more breathing room each month." Although all of our payments are current right now, we cannot really afford our current minimum payments. We are looking for a program that will result in lower interest rates and lower monthly payments. We do not expect any creditor to write off any debt - we just need some breathing room. Any suggestions? I have been speaking to a counselor at Money Management International who is telling me that, under a Debt Management Plan, creditors will not reduce the monthly payment amount, just the interest rate in order to facilitate faster pay-offs. That doesn’t sound right to me, and contradicts what is stated in this article: “Their debt management programs are highly effective in rolling back your interest and lowering your monthly payments so that you can repay debt faster with more breathing room each month.”

Although all of our payments are current right now, we cannot really afford our current minimum payments. We are looking for a program that will result in lower interest rates and lower monthly payments. We do not expect any creditor to write off any debt – we just need some breathing room. Any suggestions?

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