How Does This Proposal Thing Work Anyhow?

A Straight Talk on Debt

A Straight Talk on Debt gives you the real deal on debt, straight from our employees and personal finance experts. Learn more about debt relief plans and how to be financially fit.

How Does This Proposal Thing Work Anyhow?

Rate This
  • Comments 9

When someone joins a Debt Management Plan, waiting to hear whether their creditors accepted the proposed payment plan can cause a lot of anxiety.  I believe that what really causes this stress is not understanding the proposal process. This post will hopefully demystify this crucial part of the DMP and put you more at ease as you wait to see if your creditors accepted the terms of the plan.


A proposal is what CareOne sends to the creditors within a day or two of your first payment.  The proposal is sent close to the payment date because we want to set the tone with the creditor that you are serious about paying off your debt through the DMP.   We estimate the proposed payment amount based on the balance of the account and some guidelines established by the individual creditors (usually includes reduced interest rates).  It’s important to understand that this payment amount may change at the request of the creditor, especially if the account is delinquent.  We will notify you if that happens.


Creditors usually let us know  if they decline a proposal and we will communicate this to you right away.  We will discuss what changes are necessary so that we can resubmit the proposal as soon as possible. If a creditor contacts you directly regarding a declined proposal, which is sometimes the case, you need to let us know immediately so we can help get the proposal accepted.


The most common reasons for a declined proposal are:


  • Insufficient payment
  • Invalid account number
  • Account has been charged off and/or moved to a collection agency
  • Recent use of account
  • Account not open long enough
  • Previous payment arrangements not kept
  • Other accounts not on the Plan


Once a creditor has accepted a proposal, they will make a note in your monthly creditor statement. This is one of the reasons why it is so important to read each email and letter you receive from CareOne and your creditor. You can also contact our customer care department at 888-888-CARE to check on the status of your proposals.


There are  steps you can take to make sure the proposals get accepted:

  • Be an active participant in your Plan.  Check your account often here on this website and keep on top of what’s going on.
  • Be sure to give us the correct balances on your accounts when you enroll
  • Add to your e-mail contact list so that you make sure you receive all correspondence from us.  Check your bulk email folder to make sure your email provider didn’t deliver our emails there.
  • Review every piece of correspondence from CareOne and all of your creditors.
  • Be patient and understand this is a process and can take some time


As I have discussed in previous posts in my blog, the first three payments are crucial to the success of your Plan. Remember, it’s not signing up for the Plan that counts; it’s making those first few payments. Signing up is a commitment, making the payment validates that commitment!


Your comment has been posted.   Close
Thank you, your comment requires moderation so it may take a while to appear.   Close
Leave a Comment
  • * Please enter your name
  • * Please enter a comment
  • Share
  • This is pretty much how the proposals worked for me.  I wish you had written this before I signed up because like you said, I didn't understand how it worked and I was a nervous wreck.  I hope this helps others who are getting ready to sign up or have just signed up.

  • I read a lot of the message boards before signing up, so I didn't get too panicked when it took a couple of months for one of my creditors to accept the proposal.  knew going in that it might take a few payments before all my creditors accepted the proposals, but I was a little nervous too.

    Luckily my other two creditors accepted almost right away, so I felt pretty good about signing up.

  • I just wrote an email about this because I am a little confused. They say you have to still make your payments until the first payment through the program is posted, but I can't make the program payment and additional payments directly to the creditors.  I'm still worried. :-/

  • I'd be REAL careful about DMP.. It works for some. So they say.. But I have spoken with MANY people who ended up further behind. BE SURE YOU UNDERSTAND.. Most of this is still up to you. There Really isn't anyone else going to help you. CESI and Careone claim your payment goes right out. (There's a delay Up to 8 days. )It is YOUR responsiblity to call the credit card company's to be sure they have received the proposal.  Your money sits making interest for them until the ok is given to send the money to the Credit card company.  CESI doesn't help with over charge fees or late charges. Those will Keep being added to you account. So making a lower monthy payment... It's still adding to your debt. Balances don't go down. If you start off not in Past Due status.. THere's a very good chance you will.  Be sure you look at your statements every month. CESI says they'll take care of it.. BUt it's REALLY still up to YOU!!! My friend is making his 8th payment and is still being called he's further behind then when he started and he has not missed a payment with CESI. They keep telling him the card company's will agree they just want another $1.  By the time my friend realized what was happening, Two of his accounts had been sent to collections. Just be aware people!! Be Careful!!!!  You have allot more follow up then they admit up front.

  • I just read the comments from proudmom and mamashel3.  I am really concerned now!!  I just entered into a DMP.  My first payment is due within the next 5 days.  I am like proudmom.  I could not make payments this month and still have the funds to make the DMP payment.  I was not told that I needed to call and explain this to my creditors.  I entered my DMP with every single creditor being paid ontime.  I was not behind and made the choice to enter a DMP before I did get behind.  After reading mamashel's comments I feel like I have made a BIG mistake and now my creditors will apply late payment fees when I was told that those would be waived for the creditors that I put on the plan.  I am a nervous wreck thinking I have been misled.

  • Has anyone's situation gotten better??

  • I just signed up and all these comments are starting to make me real nervous. So I guess it's just wait and see?????????

  • I've been with the program for 1 year and 8 months and the proposal process went well for me. What Rob says about being an active participant is very important.

    I waited 3 statement cycles for my benefits to kick in. The rate reductions happened almost immediately, but I did have to call a couple of creditors and add a few more bucks to bring my accounts current. I talked this through with CareOne and they encouraged me to do so if I could afford it.

    The peace that comes with knowing that in two years and two months I will be debt free is so worth it. It's a long road, but I'm almost half way there. Step by step, month by month.

  • I know for me I created my own financial mess and am grateful Care One is available, thay do tell you up front to call your creditors and set up a new due date about a week after your DMP payment is due as to not get charged late payments. It's been my experience that most if not all creditors are willing to work with you even at reduced interest rates just so they can at least recover the principle. How much effort you put into it is what you'll get out of it.

Page 1 of 1 (9 items)
Your comment has been posted.   Close
Thank you, your comment requires moderation so it may take a while to appear.   Close
Leave a Comment
  • * Please enter your name
  • * Please enter a comment
  • Share