Thread: Debt Management Plan

Hi. My wife and I are considering entering in a Debt Management Plan. Most of our debt came from me losing a job and being out for work for about 6 months and her have astronimical medical bills due to Multiple Sclerosis.

I guess my question is, has anyone done a DMP? If so, what is it like living under these programs? Are you left with enough money to live, or are you trapped for 5+ years? What if my car goes and I need a new one? Am I screwed?

I would love to hear other's life stories.....

I'd like to get some personal views on this as well... going to follow this thread.

I've heard that debt management can look bad on your credit report, but that is all I know. The pros may outweigh the cons.

From my understanding, one cannot settle a debt on a secured loan. But in my case I had a car that was totaled that was financed through Wells Fargo. My car insurance paid off most of the loan. My crappy GAP insurance paid a portion of the remainder leaving me with a balance. Wells Fargo already sent me a 1099-C for this remaining debt that was "cancelled", even though I am still paying on it and have about $1600.00 left. It was a blessing in disguise that I totaled this car for it left me without a huge debt, but I still have this little bit left and I'm going through some financial difficulty right now. I want to settle, would I be able to do this on a secured debt since the collateral they would normally repossess is gone now? Thanks.

Way I see it... why not? It's all about negotiating with the lien holder. So it couldn't hurt to call up Wells and make them an offer, imho. Good luck and let us know what you figure out.