Finding the Right Debt Relief Plan–
It's All About Options
Knowing that you have options for getting out of debt can help you feel less overwhelmed. The providers of CareOne Debt Relief Services understand this fact and can work with you to create a customized solution that fits your unique needs. When you have questions about debt consolidation, CareOne providers and our Certified CareOne Credit Counselors can answer them and help you understand the debt consolidation process. In fact, we've helped over 5 million people with their debt.
Debt Consolidation 101
Your first question might be, "What is debt consolidation?" Debt consolidation is a term used to describe a number of different debt repayment plans that allow you to get out of debt as quickly as possible. This is not to be confused with debt consolidation loans, which are not obtained from a CareOne provider, but rather a lender with the purpose of paying off outstanding loans and debts. The providers of CareOne Debt Relief Services offer two debt relief options, affording you with choices that best fit your situation. These options include CareOne Debt Management Plans (DMP) and Debt Settlement Plans (DSP). To learn more about debt consolidation and the debt relief options that can work for you, CareOne has several free resource guides that can provide you with the information you need to make informed decisions.
DMPs and DSPs are the two most common types of debt relief plans. With a DMP, your CareOne provider works with you to consolidate your unsecured debts into a single monthly payment, with the goal of receiving better repayment terms from most creditors, such as lower interest rates and waived late fees. This can allow you to pay off your debt faster than you could on your own paying only the minimum monthly payments. You can work with a Certified CareOne Credit Counselor to plan a budget and figure out if the DMP monthly payment will work within this budget. Or you can use CareOne's many online tools to help you decide whether a DMP works best for you.
In a Debt Settlement Plan (DSP), we negotiate directly with your creditors on your behalf to accept payment of a percentage of your unsecured debt to satisfy your entire unsecured debt. You make monthly plan payments to an escrow account to build in value until your creditors agree to accept our settlement offers. Once enough money has built up in your escrow and your creditors have agreed to accept our settlement offers, we begin to distribute payments to your creditors, based on the negotiated amount. A DSP may be an attractive alternative to bankruptcy for those who want to pay back at least a portion of their debt and cannot afford the DMP payment. CareOne Services, Inc. provides Debt Settlement Plans in some states and a national law firm that provides debt restructuring as part of their suite of legal services works with clients to settle debts in those states which require legal services to settle debts. Please note that in some states, DSP counseling and debt settlement representation are prohibited by law.