If you are struggling to keep up with your monthly credit card payments, a Debt Management Plan (DMP) with a CareOneSM service provider can help by consolidating all of your unsecured debt into a single monthly payment. We negotiate with your creditors for better repayment terms, such as lower interest rates and waived late fees, which can save you considerably each month.
Our DMP includes comprehensive debt counseling from certified counselors nationwide, superior customer service, and technical expertise. When you successfully complete our plan, you will have fully paid off all of the unsecured debts you started the plan with and will be armed with the knowledge necessary to manage your finances on your own.
The Debt Settlement Plan (DSP) is recommended for those who simply cannot afford the monthly payments of a Debt Management Plan, and who are looking for an alternative to bankruptcy.
With a Debt Settlement Plan, your monthly payments are held in an FDIC-insured bank account while lowered settlement amounts are negotiated with your creditors, with the goal of allowing you to repay only a percentage of your debt – typically around 50% over a 3-5 year period. While settlement usually offers a much lower monthly payment than the DMP, it also carries with it more severe considerations, including possible increased collection activity and a negative impact to your credit.
Just like the DMP, this debt relief option provides you with access to comprehensive debt counseling and superior customer service, online account access, and a payment structure which guarantees that you don’t pay us until you receive benefits.
CareOne Services, Inc. connects you with the right Debt Settlement Plans provider.
Debt consolidation (also known as bill consolidation) does not require a loan. Working with a debt consolidation company means that a representative will contact your creditors and negotiate on your behalf to find a way for you to pay back your debts, possibly with reduced interest rates and no late fees. Your unsecured debts will be paid back in full with payments you can manage in our debt management program. Another option for debt consolidation is our debt settlement program.
Bankruptcy is usually a last resort that involves a complex legal process created by Congress to provide relief from financial distress when you can no longer pay even a portion of your debts. Our hope is that after we review your situation, we can find an alternative to bankruptcy. If bankruptcy appears to be an option that you may want to consider, you will want to talk through that process with an attorney.
There are two types of bankruptcy cases designed for consumers: Chapter 7, which erases most of your debts and is filed if you have insufficient income or property to pay your debts, with no prospect of creating additional income. The US Bankruptcy Code was revamped in 2005 to make it more difficult to qualify for Chapter 7 relief. Chapter 13 involves the creation of a debt repayment plan for approval by the bankruptcy court. A trustee is appointed to collect your plan payments and distribute them to creditors.
Bankruptcy may show on your credit report for up to 10 years. This may affect your job and loan applications because job and credit applications sometimes require you to declare if you have filed for bankruptcy in the past. There is also a limit as to how often you can file for bankruptcy. You will need to consult with an attorney to determine if you qualify.
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Debt Relief Companies are sometimes referred to as debt settlement. A debt settlement company will negotiate with your debtors to reduce the amount you owe which could be up to 50%, often removing or reducing late charges and interest rates. This makes it possible for an individual to make affordable monthly payments and pay off their debts typically within in 36-48 months.
Debt in general can be a very stressful. If you’re having trouble making payments or maybe your interest rates are high and you just cannot reduce your overall balance, then Debt Settlement could be a good option for you. A reduced payment will put more money back into your pocket each month that could go towards household needs.
Initially your credit will be impacted by deciding to go into a program. Having too high of debt, late payments,or a high debt to income ratio can all negatively impact your credit. However, once you complete the program the debts in the program will show paid on your credit report and you can start working on building your credit again.
There are a few factors that determine what your monthly cost will be: How much debt you enroll into the program, how many months you choose and the type of program you choose. The goal of the program is to create a monthly fee you can afford and typically less than your current monthly payments.
There are pro’s and con’s to each. A Non-Profit typically offers a DMP or Debt Management Program. The credit card companies have pre-set deals you will receive the monthly payment you will make. The Non-Profit company receives part of their payments from the Credit Card Companies called fair share. A positive to joining this program is that is does not typically have an impact to your credit, however these programs can be very strict and if you miss a payment you could be removed from the program and any deal you made would have been forfeited. That means if a flat tire next month could cause you to miss a payment, this program might not be the program for you.
For-Profit companies typically are Debt Settlement programs. They do not get paid from the credit card companies nor do they allow the credit card companies to structure the deal so they are able to greatly reduce the amount you owe to the credit card companies.
Another really strong positive to Debt Settlement companies is that some of them are actual law groups, so starting day one you are represented by a lawyer. This is important to prevent harassing calls, wage garnishments or legal action against you.
Both For-Profit and Non-Profit include all of your fees into the monthly payment and both try to keep the program within 36 to 48 months - shorter if possible but sometimes it will extend longer all depending on the monthly payment you can afford and total debt enrolled into the program.