Does anyone have experience with MMI

December 27, 2006 10:51 PM

Looking for a Debt Management solution. Is MMI any good?

Is Money Management International any good? I read that someone here used them and they had satisfactory results (their bills got paid off, etc.) The information they sent me looks good and I am going to sign on to eliminate my nearly $11,000 in debt.

posted by ganzhimself to work & money (9 comments total)

You can't eliminate debt. The best thing a company like this can do is council you to pay off what you owe. Either that or help you make the decision for bankruptcy. Take a look at your situation and what you can do. Don't expect a magic bullet, but instead go in with the intention of finding somebody to force you to budget and start paying off the debt.
posted by cschneid at 11:46 PM on December 27, 2006

Of these groups, Consumer Credit Counselling is the best. You can find a local branch through consumercredit.com.

It is important to know that *if* they report your activity with them to the credit bureaus, lenders will treat it like a bankruptcy, especially when considering a home mortgage. Some branches do not make such a report.
posted by kc0dxh at 7:36 AM on December 28, 2006

What do you want out of a "debt management solution"? If you want someone to do the hard work for you, that's just not possible, and anyone who tells you otherwise is probably trying to rip you off. You need to figure out how much you owe and to whom, make a plan for repaying it, and then stick to that plan by making regular payments each month for as much as you can afford.

If you think you need a third party to keep you accountable to the plan, Consumer Credit Counseling is the best of the counseling services. Many of the others, including the ones that claim to be non-profit, are scams. However, as noted above, you should find out whether their policy is to report you to the credit bureaus, because it will be counted as a bankruptcy. Not to mention, you're basically paying them a fee to have them tell you which debts to pay and in what order, something you can figure out for yourself for free with not too much difficulty. The hard part isn't determining which debts to pay and when; it's making yourself cut your spending and dedicate your money to making the payments each month until your debt is paid off.

I would recommend, if you have any willpower at all, that you try to do this on your own. There are myriad experts out there who have pretty easy-to-follow plans for how to organize your debt for repayment. My personal favorite is Dave Ramsey's Total Money Makeover (although his teachings have Christian overtones, if you're not Christian, just ignore the parts about tithing and the rest still makes sense). Suze Orman recommends a similar method. Take a look at these and see whether you think you can follow a plan on your own before submitting to a service that could ruin your credit.
posted by decathecting at 7:56 AM on December 28, 2006

MMI worked for my husband and did not ruin his credit. It improved steadily as he made payments, and when he finished paying everything off a few months ago his FICO jumped 50 points in a couple of months as the balances zeroed out.

They offer the same service as CCCS (they bought Ameridebt, which is where my husband originally started and who were maybe not so great). They negotiate lower-interest payments that are paid through them in a lump monthly payment. They have online payment and you can pay extra when you have extra, it won't mess anything up.

They did what they were supposed to do. My husband was smart and got in right when his circumstances changed abruptly and he knew things weren't going to right themselves immediately, so his credit wasn't already devastated. That happened to me some years ago, I wish I'd gotten help in time myself.
posted by Lyn Never at 8:30 AM on December 28, 2006

It's not that I can't figure this stuff out for myself, it's just that I'd rather devote my time and energy to other things. I make enough money to pay the debts off, but I lack the organizational skills and motivation to actually remember to make 5 payments, due at different times, every month. Also, being able to get these debts paid off in 4 years is much more appealing to me than dragging this out for much longer with the high interest rates on credit cards. MMI doesn't do any reporting to credit agencies, it is up to the individual creditors to report it if they want to.
posted by ganzhimself at 8:36 AM on December 28, 2006

Oh, and by eliminatethe debt, I meant, pay the debt off.
posted by ganzhimself at 8:38 AM on December 28, 2006

I've used a company like MMI, but not MMI themselves. I've had very satisfactory service with a non-CCCS credit counselor, so don't worry about going with an "off-brand" if Lyn's hubby had a good experience with them.

And hang in there, this will seem like a long process, but your debts will be paid down before you know it.
posted by Doohickie at 10:00 AM on December 28, 2006

Oh, and as for whether you "need" a third party, it's simple: many credit companies will restructure debt and lower interest rates when a third party is involved because they have standing agreements to do so with those third parties. The credit counselors have credibility.

Someone who's run up a lot of credit and hasn't shown the ability to pay it off has no cred. The creditors often just don't work with individuals to restructure paybacks unless a third party is involved. Period.

We know this because we were recommended to a credit counselor by a creditor when we inquired about restructuring. They said they NEVER do it with individual customers, but only do it if they go to a credit counselor. Worked for us.
posted by Doohickie at 10:03 AM on December 28, 2006

Oh, and as for whether you "need" a third party, it's simple: many credit companies will restructure debt and lower interest rates when a third party is involved because they have standing agreements to do so with those third parties.

Very true; during a bout of issues with Citibank they refused to alter my interest rate but were very forthcoming that they would do so were I to go through CCCS, everything else being equal. Not all lenders are so rigid but some are.
posted by phearlez at 12:07 PM on December 28, 2006