If they turn you down, make a few larger than average payments and try again.
Also, while a DMP is not factored into a credit score, some creditors note that you're paying through a third party, which can be a red flag to a lender or anyone else looking at the report. It shows that they need help paying their bills," says Stuart Davis, a senior loan consultant for Princeton Capital out of Los Gatos, California.
According to their underwriters, the plan needs to be complete before they will make a loan.
If most of your liabilities include other types (tax debt, unpaid child support or old parking tickets, for instance), these plans won't help.
Second, you should be confident that you can pay not just for a month or two, but for years.
Consolidation is not right for everyone, make a decision that's right for you. Your payments will remain the same until all the creditors are paid off. You must keep up with your monthly statements and forward them to the consolidation agency. You can't use your credit card until you're done with the debt management plan. A debt management plan is not bankruptcy, but it will appear negatively on your credit report. Here's what you need to know about consolidating accounts through a debt management plan with an agency. Instead, they have preset arrangements with most financial institutions, many of which lower interest rates and fees, so more of your payment goes toward the balance rather than finance charges. With something as precious as your finances, be exceedingly careful about who you work with.