Will AMX close my account, if I sign up with debt management plan?

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m20e3087
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Will AMX close my account, if I sign up with debt management plan?

Postby m20e3087 » Fri Apr 27, 2012 7:06 am

After trying several banks and credit union, I was unable to get a personal loan to pay of my credit card debt. So I am leaning more towards DMP. I am carrying balance on my two citi, and AMX. If i sign up, I will not put my AMX account on that plan. So my question is will AMX close my card, if they find out I am with DMP? I have never missed a payment on any cards. I am just trying to cut the APR % rate. I have talked with citi, and they can't help ..
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Crashem
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Postby Crashem » Fri Apr 27, 2012 9:15 am

DMP can work, but I think as part of the agreement, you are suppose to stop using credit entirely. Although I have heard of others who "excluded" a card or two. Not sure how AMEX will react as being on a DMP reports to the bureaus.

Ideally though, if your credit score is high enough or you can get it high enough, you get some low interest credit card or 0% BT card and actively pay it down. It is more flexible than a DMP and most likely a lot lower rates. However, you can still get yourself into problems as you can continue to use and apply for more credit. I know cards with 7ish% interest and citibank has nice 0% for 18 months BT cards.
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Moneytalks
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Postby Moneytalks » Fri Apr 27, 2012 10:30 am

Crashem wrote:DMP can work, but I think as part of the agreement, you are suppose to stop using credit entirely. Although I have heard of others who "excluded" a card or two. Not sure how AMEX will react as being on a DMP reports to the bureaus.

Ideally though, if your credit score is high enough or you can get it high enough, you get some low interest credit card or 0% BT card and actively pay it down. It is more flexible than a DMP and most likely a lot lower rates. However, you can still get yourself into problems as you can continue to use and apply for more credit. I know cards with 7ish% interest and citibank has nice 0% for 18 months BT cards.


If you pay with cash for the program, no creditor would know theoretically... unless they stalk you haha
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PlatinumAMEX94
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Postby PlatinumAMEX94 » Fri Apr 27, 2012 2:32 pm

As soon as you have completed your DMP all of your creditors will close your accounts. From American Express's standpoint, you are now a tarnished customer and they don't want those kinds of customers. Sorry, they only want customers who can pay in full every month.
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DavidNY
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Postby DavidNY » Fri Apr 27, 2012 2:45 pm

If you'll be shunned by the banks anyway why not just do a BK?

m20e3087
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Postby m20e3087 » Fri Apr 27, 2012 3:42 pm

I don't have problem making the payment every month, however don't want to pay the high APR as well. Because of that I was considering DMP.
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PlatinumAMEX94
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Postby PlatinumAMEX94 » Sat Apr 28, 2012 5:45 pm

DavidNY wrote:If you'll be shunned by the banks anyway why not just do a BK?


Well for one, it costs a lot more to do a BK, but not as detrimental in the long run. If you file BK you may NEVER get some cards, such as an American Express, as you have to honestly answer "Have you ever filed for bankruptcy?" They don't ask if you have ever filed for DMP.

See why that would make a difference?
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