My Journey out of Debt

Featured customers currently enrolled in a CareOne Debt Relief Plan, share journey to become debt-free; hear how they juggle family, finances, and more.

Experiencing a Healthy Fear of Credit

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Experiencing a Healthy Fear of CreditEither most of us are looking forward to that "debt-free day," or perhaps that day has come and passed.

Wherever you may be in the journey, some (including myself) can be left with a bit of fear in regards to credit. I had a few fears, and perhaps they have run across your mind at one time or another.

The journey starts out with all your focus on getting out of debt, but once your plan is complete, this will most likely change. You are no longer focused on making your monthly payment to CareOne or watching your statements closely every month because the debt is no longer there. 

Even with extra funds and no outstanding debt, the thought of credit, or starting again with credit cards may strike a little fear in you.

Possible Fears

1) After fighting to get out of debt, the thought of applying for credit and damaging your newly-restored credit score is a possible fear. This fear surfaced for me when we desperately needed a more reliable car. I continued to put off the thought of getting one right away, thinking that if we applied for credit or a loan too soon after getting out of debt, it would tarnish our credit score. We had to purchase a newer car sooner than we anticipated.

Did it hurt our credit? Not at all, because little did we realize, while we were enrolled in the CareOne Debt Management Plan (DMP), we were actually building a strong and healthy credit score over those four years, which resulted in a better interest rate. Research on credit scores shows that although a minimal impact on your score does exist, it is not as if your score will plummet when you apply for credit.

However, as a special note: multiple inquiries for credit in a short period of time do add up, so you want to apply prudently. I would add that this was MY experience on the DMP and the subsequent impact on MY credit.  CareOne cannot and will not make any claims about the impact of their debt relief plans on your credit score. They advise you to go straight to the major credit reporting sites for more information. 

2) When you have overcharged in the past, you may worry that you'll go crazy with credit again. Admittedly applying for credit a few months after graduating from the CareOne DMP made me nervous; however, I realized I had to set the boundaries in order to stick to my goals and use my credit wisely.

Research shows that high balances can also kill a good credit score, so personal debt management is crucial. I decided what better way to manage my credit than to limit it. So getting past the fear, I decided on one credit card, with a low credit limit and a low interest rate.

No more FEARS . . .

Are you afraid of using credit cards again? 

Feel free to share your fears of credit, now or after graduation.

Zandra Halley, CareOne Debt Management Plan Graduate


Zandra Halley

Zandra is a graduate from the CareOne Debt Management Plan (DMP). You may have seen her posting as 'Motherofone' in our Community. Zandra and her husband have a lovely daughter who was their motivation for tackling their financial future. Having successfully graduated from the DMP, Zandra will be sharing her tips and experience with all of you to help others be successful with their financial goals to pay off their debt. Follow Zandra in the My Journey out of Debt blog. Compensated CareOne Blogger.



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  • I'm actually quite concerned about what will happen when I make that last payment.  What will I do with the money that is suddenly in my pocket?  Will I feel like suddenly I don't have to manage my finances quite as closely?  

    I need to have a plan for that money.  Vonnie and I need to continue to have our financial discussions and earmark every dollar for something - whether it's college accounts for the kids, savings, retirement or whatever.  We cannot lose the focus that we are developing.

    What I do know is that I will never trust myself with credit cards again.  Don't want them, don't need them.  We're learning to live such that we won't need credit cards ever again, and that's something I plan on sticking to.

    I'm 18 months away from being done, but the time to think about these things are now.  Being prepared ahead of time will help me with that transition....I hope.  :)

  • t_pizel you are right.  Thinking ahead and having a plan is the best way to step over into the debt free world.  I truly believe without setting a plan in place a person would too easily end up right back where they started.  

    Those 18-months will be over before you know it!!!

  • I do have a plan in place and an automatic withdrawal set up to put into my savings account for my different categories but I still have that fear!!  I hope after the first month or two it will become a natural habit.

    I truly appreciate your blogs.  It will help guide me through my freedom of debt!!  Thank  you!

  • mdavis1964 Healthy Fear is good.  It will help you stay on track and you will be fine. You have your plan in place and I do believe today is your Celebrated Day on being Debt Free. Congrats to YOU!!!

  • Thinking ahead and having a good plan is the best way to step over into the debt free world.

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