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Care One Debt Consolidation


Forum: Financial Planning and Budgeting

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  #1  
January 27th, 2011, 10:07 AM
AddysMom24's Avatar Mega Super Mommy
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Does anyone here use Care One (Debt Management Plan)

Were currently looking in to it. Were not behind and have excellent credit scores. Just looking to try and get out of using our cards but combining them and paying it all off.

DMP lets you make one payment and they negotiate with your creditors to lower interest. However they cancell all your cards on the plan in the process...

What are your experiences if you have used the plan... or heard of it...
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  #2  
January 27th, 2011, 11:00 AM
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I would NEVER use a company to pay down debt. YOU have your best interest in mind, they do not!

You can call companies and see if they will lower your interest, make a debt snowball, etc!

If you need help figuring out a plan, shoot me a PM, I've mapped out plans for quite a few people.
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  #3  
January 27th, 2011, 03:18 PM
C&K'sMama's Avatar Platinum Supermommy
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My ex used a debt consolidator and he said it tanked his credit. I don't know the details, but it made me weary of using anything like that.

They couldn't reduce all his balances and 10% of his monthly payment went to them as their fee, so you're probably not any better off financially by letting them reduce it and paying their fee versus paying it off yourself. (he did not use care one, but from my understanding they all kind of work the same)

I agree with Kris, you can do it all yourself. I suggest the debt snowball! That's basically how we did it and we'll be debt free in a couple weeks!
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Last edited by C&K'sMama; January 27th, 2011 at 03:21 PM.
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  #4  
January 27th, 2011, 10:05 PM
Lynsann's Avatar Platinum Supermommy
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I agree with the PP's.
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  #5  
February 11th, 2011, 07:43 PM
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I am in the same boat as you. I did some research online and using any kind of company like that will hurt your credit score. Don't do it if you don't have to.
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  #6  
February 14th, 2011, 08:56 AM
luvmygirls333's Avatar Super Mommy
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DON'T DO IT! If you are not behind and have great credit, it is not for you. I know it sounds tempting to pay it down fast, but you will be sorry. You can do it on your own. It may take longer, but it will be sooooo worth it.
Make a budget and stick to it. Put every dollar you can toward your debt.
We had 32K in credit card debt in January of 2010. I started budgeting and using coupons and our debt is down to about 9K now. It can be done!!
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  #7  
February 14th, 2011, 12:25 PM
mommy2Breana+Brandon's Avatar Platinum Supermommy
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I agree I did use them and I was behind in my debt and it did jhurt my credit score
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  #8  
February 14th, 2011, 05:09 PM
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Location: Texas
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Don't do it!!!!! I'd never really suggest them, but you DO NOT want to use them if you are current!

What they basically do is not pay on them for months and months and months. (You are still paying them). Then they try to negotiate with the CC company ie - we will pay you $2000 now if you lower this interest rate, or we will pay you $4000 right now for this $7000 card if you will take that as payment in full. It will ruin your credit in the process!

You will be much better off making a plan to pay them off on your own! Since you have good credit - maybe you can transfer some of them to a card with a lower promo rate, or just a lower rate period. (Just don't put new charges on them because you have a "good rate.")

credit counseling places are usually a last resort. You seem like you're in a pretty good place, and smart to take the steps to pay down your credit debt now :-)
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  #9  
May 8th, 2011, 07:16 AM
IndyMommyWannabe's Avatar Always Hoping & Praying
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actually my parents and I used the same debt pay down company here in Indianapolis - and they are INCREDIBLE!!!!!! yes, i will agree that most debt consolidators are bad news - and WILL tank your credit score...but there are a few out there that are legit and awesome!!!

Credit Counselor's Corporation in Indiana is who we go through. My parents paid off over $100,000 in debt with them in over 4 years and never looked back. Their credit score is incredible now and they have no debt - other than my student loan debt they helped me out with while i was in college...

I have paid down over $5,000 with them now and have 2 more years to go for the other $5,000. The ONLY issue i have encountered being with them was trying to get a home equity line of credit, the bank wouldn't let us have one - and they couldn't understand why as I have an AWESOME credit score...but then the banker realized I was with CCC and that was why they turned us down. Otherwise I love them.

The difference with the one we go through is that they do not actually "consolidate" our debt...but they are more of a middle man...say you have $50,000 in debt - you will end up paying off $50,000 in debt. Unlike others who "negotiate" and pay a different amount (which are the bad ones you do NOT want to go through).

What CCC does is they talk to the creditors and basically "promise" that they will get their payments but in turn the creditor brings down your finance charge...for example, the one card I have with them started at around $11,000 and i've paid off around $5,500 - but my interest rate WAS 19% and they took it down to 11%. My mom had some that were taken down to 6%.

Now my min payment WAS only $205/month with a $130 finance charge...to pay off $11,000 in that way would take over 13 years. Whereas with CCC it's taking 4.

CCC's payment that I make is about $400/month - $50 is CCC's charge to use them and $350 goes to the CC - with about a $50 finance charge. They take $300 and make the payment to my credit card once a month - and I can go online to my credit card statement and see every time the payment is made (and I keep track of what that new balance is every month, i love seeing it go down!)

going with them was the absolute best thing ever.

but you absolutely MUST do your research...as - again, i agree that about 90% of "credit consolidators" out there are very bad news, but there are some out there that are great!
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  #10  
May 11th, 2011, 10:47 AM
JessP's Avatar Lovin life and family
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I agree if you don't have to don't do it. Most of the time it will ruin your credit. Many times your bills still end up in collections with you getting calls. My BIL owned a collections agency. He got those alot and people didn't understand what was going on.
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