What to Expect Month One on a Debt Management Plan

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What to Expect Month One on a Debt Management Plan

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An old cliché is the longest journey starts with the first step. This is true when you enroll in a debt management plan as well. The first month is probably one of the most important times during your entire plan. This is especially true if you are behind with your accounts, or are about to be.

Accounts are Behind

 

  • Phone Calls.  If you are behind with your accounts the phone calls will continue for the first month, especially if you scheduled your payment date with CareOne out several weeks. When you join a DMP the creditors are notified by CareOne who sent a proposal within a day or two of your first payment. The creditors have requested proposals be sent this way and since it is ultimately up to the creditors to offer benefits, we tend to follow their instructions. Do not give up before you make your first payment. Enrolling in the plan is the first step, making your payment is the next one.  
  • Interest Rates and Fees.  Interest rates will continue to be high and you will still receive late and over the limit fees until the creditors accept your proposal and start to issue benefits. This generally takes three consecutive payments on your plan. These charges are usually either waived or rolled into the total amount of debt to be paid off during your plan. 
  • What Creditors Say.  Creditors will continue to contact you and they may tell you a variety of things in order to get you to make a payment. It is important you do not do this, you committed to making a payment to all of your creditors through CareOne. We do not want you to jeopardize benefits with all of your creditors only to save one.

 

Accounts are Current

 

  • Phone Calls.  If your accounts are current it is unlikely you will receive any phone calls from your creditors unless you schedule your CareOne payment date past your due date for your creditors. In order to avoid this simply move your due date with your creditors to the end of the month.  
  • Interest Rates and Fees.  The interest rates will more than likely stay the same and you may be assessed late fees, again depending on how your CareOne payment date and creditor due dates coincide. If you do receive a late fee, do not panic; these fees are generally waived or rolled into the total amount of debt to be paid off through your Plan.  
  • What Creditors Say.  Creditors will ask you to no longer use the account and will notify you it has been closed. This is not a bad thing! You enrolled in a DMP with CareOne because you wanted to be debt free. Having access to open lines of credit does not lead to being debt free.

 

 

Rob Taylor  

Rob Taylor is a contributing author for A Straight Talk on Debt. Rob tells it like it is when it comes to the latest debt industry news and shares his advice on personal finance.

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  • I just started the program and I am scared to death. The phone rings and I don't answer it for fear that it is most likely a creditor. I don't want to be sued. I just want to get out of high interest rate debt.

  • I just started this  Program and made my first payment i have only recieved one call in the past month its awsome.. But ive commited myself to continue with this and get out of dept

  • To those who are just starting out....I have been in the program for almost 5 years.  It was very hard in the beginning but don't give up!!!!!  I have just 10 more months to go and I can finally see the light at the end of the tunnel.  So, keep going and know that each payment you make brings you one step closer to living a debt free life!

  • We just made our second payment.  It feels good to know that we are on the road to debt freedom.  So far the most difficult part is dealing with the phone calls of the creditors.  Most of them have accepted that they need to contact Persels & Assoc, but on creditor has been calling us at least 9 times a day.  They are ignoring the fact that they have received numerous letters and will not accept the information verbally from me.  But, if this turns out to be the worst part of this program, then it will all be worth it.

  • This is one fantastic program and i recommend it to all my subscribers to get involved and become debt free for life.

  • I just started the program.......and I am nervous. Just like the rest of clients I cant wait to be debt free.......  Thank you care one for caring about me.

  • I just started the program.......and I am nervous. Just like the rest of clients I cant wait to be debt free.......  Thank you care one for caring about me.

  • I am nervous too.  I am not behind or anything.  I just want to get the debt down or gone.  I love the one payment option,but I am so scared about the calling.  I have never had to deal with this before.  

  • I just joined & am trying to understand all that is going to happen in the first 3 months & still have questions but I know that things will work out. I have always been able to make my payments but I am tired of the high finance charges & no end in sight - so that is why I joined.  It is great to know I will be out from under creditors in such a short time!  In fact right in time for my retirement!

  • I haven't made my payment yet, but have run into horrible customer service already.  I was told I would pay only $59 on my Suntrust loan, to finally be told there was an "error" and that my payment would go from $369 to $500 a month!  Every dollar counts, and it's already going to be rough making that payment, but knowing that I am paying off the debt and not just interest every month is great.  

    We'll have to see what happens with the proposals, if the customer service is this bad, I have doubts of how this plan will pan out in the end.  

    We'll see what the New Year brings me..

  • So far so good...Proposals accepted, phone calls have ceased.  I feel organized, and cannot wait to be out of debt!

  • Let me just say that I have finally made my first payment....I am scared to death that the proposal we have with HSBC beneficial will not be accepted...Does anybody have any experience with this company. They are the reason I am here.

  • What happens if a creditor doesn't accept a proposal? Another creditor told me they haven't received a proposal even though it says pending in my program plan. So I have one that says pending but the creditor hasn't received it, and one that was flat out refused.

  • i just started this program yesterday and my 1st payment is on 2/5/10.  i am already late on december's payment and the calls have started.  i can't afford to make my 1st payment and try to catch up on the late payments.  

  • Just started 1/10/2010 and all 4 proposals have been accepted with interest rates lowered considerably and no

    late fees. Have been current on debts but not paying balances because they are high and so was interest rates. Am excited

    to be in control and can use extra money each month to

    further pay off debt.

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