My modified version of DR's Plan

**BigTony** · 08-24-2009, 11:54 PM

As I said in some of my previous posts, I am with CCS, Money Management International. I know that this is not what the board really believes in,but for now I am in.

However, today I spoke with my counselor and I am going to put 75.00 extra a month into tha program, I instructed her that I want to pay my smallest debt first. ( Citi Bank 850.00 ), There should be a small victory fast. And I hope I can get my my own snowball going. First payment on August 28, 2009. Its is a 60 month plan, I am going to get it done in less time.

I know I should not be all over the place, but I am working on my emergency fund. I had to modify DR's plan just a little, then I hope to be on track.

**mauimagic** · 08-24-2009, 11:59 PM

You sound calmer and stronger Tony. Good luck with your plan - keep us informed!!

**mamamia** · 08-25-2009, 12:50 AM

I'm trying to figure out a revised version of the DR plan myself. I'm going to ask Gabe because I know he does it that way and I could use some pointers.

Anyways, hoping the best for you. I hope you keep us posted, I'd love to see how it works out for you.

Theresa

**a.nonymous** · 08-25-2009, 05:15 AM

Originally Posted by BigTony

As I said in some of my previous posts, I am with CCS, Money Management International. I know that this is not what the board really believes in,but for now I am in.

However, today I spoke with my counselor and I am going to put 75.00 extra a month into tha program, I instructed her that I want to pay my smallest debt first. ( Citi Bank 850.00 ), There should be a small victory fast. And I hope I can get my my own snowball going. First payment on August 28, 2009. Its is a 60 month plan, I am going to get it done in less time.

I still believe going with such a program is a costly mistake, however, personal finance is personal, so I'd be pleased if you'd prove me wrong. Wouldn't be the first time, either.

Just please do make absolutely sure that they are following your instructions. Their typical modus operandi is to not pay any debt at all and wait for the companies to be willing to settle for less. You have to pay close attention to what they're doing or you might end up in a mess far bigger than you had going in there.

**Preston** · 08-25-2009, 05:46 AM

I was with a CCS for a little while and honestly it was more hassle than it was worth. The benefit was that I got my interest rates lowered. The offset was the $50/month fee for their 'services'

If my CC companies would have been more cooperative I would have never had to use the CCS.

Once I got things more stabilized I was able to transfer the debts from the CCS to 0% balance transfers and save myself the $50/month. Also, I felt a need to be in control and the 15 day lag between when my account was debited and when my credit cards would be paid bothered me significantly.

It may be good now to get your situation under control, but with some self discipline you should be able to do anything the CCS will do by yourself without the added fee.

**BigTony** · 08-25-2009, 11:55 PM

Thank You Preston for your post, right now and like you said the Credit Card companies are being hard on me. I have to take this route for now..

**never2late** · 08-26-2009, 08:00 AM

I read your first posts Tony and was wondering how you were doing - Thanks for the update! Congratulations on taking the first step - it is definitely the hardest one!

I think modifying the DR plan to fit your needs for now is fine - the important thing is you're doing SOMETHING instead of nothing. As time goes by and some debt is gone, you can always take another look at how things stand and make more changes. Keep your chin up!

**kita** · 08-26-2009, 08:09 AM

I would double check and make sure that the extra payments will help you get out faster. When I ran your numbers it appeared that using them would lower your overall debt amount. Not a bad thing, but if they allow to make extra payments, make sure it is being applied to your debt, and that it brings the payoff date closer. You don't want to be making extra payments only to find out that the extra money is considered a donation and you are locked into $X a month for 60 months.

**BigTony** · 08-26-2009, 09:14 AM

I have instructed them how I want the extra payments dispursed, lowest debt first and then and then so on. I will watch this very close and let everyone know.

**MaryCarney** · 08-26-2009, 10:07 AM

BigTony - you 'sound' so much more calm and in control and not panicked!!!

I'm so happy for you - I think you finally have your arms around this huge monster and are planning his ultimate take down!!

Congrats!

PLEASE keep us posted. Have Greebo set you up with one of those ticker things he's got in his signature

I'm still praying for you, and all my FV friends who struggle with this issue.

**mommytomy3sons** · 08-28-2009, 11:43 AM

We're right there with you, Tony. My husband has been laid off twice now. He finally found a great job but it requires us to relocate to New York from Texas. Then we plan on joining MMI, getting credit cards paid off and socking as much money away as we can. I have a friend who recommended MMI. We've tried working with the creditors ourselves- they either want the entire amount past due or tell us to use credit counseling services so that's what we'll do. Our lien holders on our vehicles have been very understanding....they've let us defer one payment and late on the next one. The only way to prevent this from happening again is to prepare as if it will.

Oh- we even had credit card insurance on a few cards in case of job loss...what a scam that is! They charge my husband $18 for the service but it's taken them six months and repeated calls just to get them to mail out the paperwork to file a claim!