I heard that I have to close the credit card accounts when I enter into a DMP. Somehow, this doesn't sound right to me. Will my credit score not take a hit if the credit accounts are closed?

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When you enroll in a DMP, a proposed payment plan is sent to your creditor. Usually, the creditor closes down your account at that point only. It's because one only chooses a DMP when he finds it difficult to pay the credit card dues. Besides, the creditors may also need to lower your charges, or drop the fees. So, how do you think the payment plan will work if you continue with the credit purchases?

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So that you don't incur any more credit. Your credit score will take the hit anyway.


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