Staying on Track with Your Debt Relief Plan

Making the decision to join a Debt Management Program(DMP) may be one of the most responsible decisions you make to preserve a better future, or even a better life. Once you've enrolled, however, staying on track and focused can be more difficult that you expected. If you can be disciplined and stay focused-what a payoff! Imagine living your life without any credit card debt...

Tip #1: Track Your Progress

Sign into your MyCareOne account and watch your credit card balances go down every month. I tracked my progress online and double-checked my statements, but I LOVE the chart on MyCareOne profile page. To see where I started and how much work I had done was really inspiring for me. It's such a great feeling to see the arrow on that chart fall every month. Actually being able to visualize your progress may be the inspiration you need to stay on track.

Tip #2: Avoid New Credit

OK-so this should go without saying, but as the old adage goes, "old habits are tough to break." Taking on a new credit card while in DMP can be dangerous for a couple of reasons:

1. For one, you could be sabotaging your own progress: recall why you made the decision to join a DMP in the first place.
2. Taking on a new credit card could result in the termination of your creditors' participation in your DMP. Benefits of being enrolled in a DMP like lower interest rates and no fees could be jeopardized if you take on more credit.

Tip #3: Get Comfortable with Aggressive, but Affordable Monthly Payments

I'm going to be the first one to say that staying on track can be the most challenging when I see how much money leaves my checking account every month for my DMP payment. I have the same payment today that I had over four years ago when I enrolled. Yep-it's hefty, but because I have maintained the same payment throughout the duration of the program, I have seen some great benefits. One, my credit score has drastically improved. Two, I've been able to complete the program quicker because as I pay one card off, I transfer the extra monies to the next lowest balances. Finally, remember that each month that you make that payment you are one step closer to being DEBT FREE!

Tip #4: Patience

When I first began the DMP, the first 12 months seemed to move slowly, even considering that the average length to complete a DMP is about 60 months, (or 5 years). Compare that to consumers who do not enroll in a DMP and simply continue to make their minimum payments: 25 years! 25 years until you're free of credit card debt?! YIKES! If I took 25 years to pay off my credit card debt, my unsecured debt would outlive my student loans and mortgages, and I would end up paying a nearly $100,000 in interest!

Whenever I'm feeling tired or distracted, I consider those numbers: 5 years versus 25. That alone is inspiration to keep me motivated and focused.

Anyone have any great tips or tricks that they've used to stay on track?

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 Katy Dinger

Katy has been a customer with CareOne Debt Relief Services since November 2007. She is a legal consultant and enjoys various freelance writing projects during her free time. Facing more than $50,000 in credit card debt upon graduating from law school, Katy knew she needed help. Getting into debt was not nearly as challenging as getting out, but she believes that managing debt is possible with the proper tools and trusted guidance. Follow Katy's blog under My Journey Out of Debt.

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