What to Expect Month Three on a Debt Management Plan

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What to Expect Month Three on a Debt Management Plan

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During the third month on a DMP, there are generally three groups of customers; those who have made their payments on time during the first two months, those who pushed their payment into the second month, and those who have moved their payment date a few times or missed their payment.  

Remember it is about the creditors receiving a payment, not just being "enrolled" in a plan. Consistency is a key to success! 


You Have Made Two Consecutive Payments


  • Accepted Proposals.If youmadeyour first payment in the first month of enrollment most ofyour creditors have already accepted the proposals and may have started to issue typical benefits such as lower interest rates. There may be a few other creditors who accepted the proposal but the benefits are contingent on the customer making three consecutive payments. If you are in this group, you are well on your way to reaping the benefits of the DMP and becoming debt free. Keep up with the consistency!
  • Declined Proposals. Some of the creditors may decline the proposals for a variety of reasons. The most common are:

o Account in a promotional status: Generally means the account is less than one year old and was used to purchase something in a store like Home Depot or BestBuy®.

o Requesting a larger payment: This can happen when a billing cycle occurs between when the account was enrolled and when the payment is made.


By now you should know if there is any chance of the creditor accepting the proposal. If there is not, it is time to decide whether to keep it on your plan or take it off and work with the creditor directly. 


  • Pending Proposals. Some of the creditors may neither accept nor decline the proposal, but simply not respond. This is referred to as a pending status. If this occurs we rely on the customer to review their creditor statement to see if benefits are being applied.


You Pushed Your First Payment Into the Second Month


  • Accepted Proposals. By now the creditors have received one payment and are looking for the next one. Some of the creditors may have already accepted the proposal and started to issue the typical benefits while others may have accepted but the benefits are contingent upon three consecutive payments. It is important to make your next few payments on time to make sure these proposals are accepted.
  • Declined Proposal. More than likely the accounts have fallen behind and some of the balances have increased. Don't be alarmed. Remember this is a long term solution not a short term quick fix! The creditors may ask for a few more dollars each month because of the increased balance. It is important to monitor your email for communications from CareOne. If the creditor requests more than $10.00 each month, you need to authorize the transaction with CareOne.
  • Pending Proposals. Some of the creditors may neither accept nor decline the proposal, but simply not respond. This is referred to as a pending status. If this occurs we rely on the customer to review their creditor statement to see if benefits are being applied.


You Have Missed More Than One Payment


Unfortunately, missing payments will cause most proposals to be declined because of inconsistency. If you are having trouble making the DMP payment, you may consider looking into debt settlement.

Remember, it is not just joining that counts, it is making the payment on time each month! Being involved with your plan by reading each of your creditor statements and communications from CareOne will go a long way in reaching your goal to become 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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  • Well I'm about to make my first payment on the 20th, and I've budgeted this deduction into my monthly expense spreadsheet.   Any advice on what to do with accounts that weren't accepted into the program, and they're giving me a hard time with accepting payment arrangements.

  • Keep with the program it works, it will take a few months to get on track,you just have to ballance your budget and you will be ok.

  • yes find out from them what there accepting offer is some of the times it may be just a few dollors more than the proposed amount my advace is to get all your accounts online with careone

  • Stay with the program, we had the same issue with one of our creditors, with in 5 weeks they finally accepted the proposal.  We had to adjust the amount a few times, but once they knew I wasn't giving up and I knew they weren't either  i think we all came to an agreement with the final proposal.  We have made our fourth payment and everything is on track from here on out.

  • I would call the ones who have not accepted the proposals. Tell them each what you are doing. Let them know that you are going through Care One, and that you can't afford to pay them outside of the DMP. Most will work with you because they want their money. Some might not reduce interest, but at least they would be on the program. We just made out 10th on-time payment. It feels so great!

  • I just encourage everyone whose creditors are taking a little time or repeated attempts to approve the proposals to stick with it.  It took several months and multiple attempts by Careone to have some of our creditors accept, and it was worth it.  We have been on the program for almost 2 years now, and are well on our way to being out of debt.

    It is worth the annoyance of getting it all ironed out in the beginning.

  • Just paid my last bill started the program in Feb 05 and it is well worth it. I saved 22,131.07 on intrest over the last few years good luck and I do recommend this to anyone who has credit problems and cant make payments on time.

  • I started the DMP in Nov. 08.  I just made my third payment, of which, according to this site, I am suppose to see progress.  I must say that since sign up, my creditors accepted without problems.  I can see how quickly the numbers from all across the board come down.  My monthly payment is kind of high for me, but I've taken a second job and will kick, scratch and kill to make the payment.  I am in $25,000 debt and I would recommend the program to anyone. My advice would be to sign up at the first sign of trouble with your debt.  Don't wait and think you can work it out.  I thought so and waited longer, thus increasing my debt.  I can't wait to post when I make my final payment.  This financial experience has taught me not to be afraid of credit cards, but to respect the fact that credit cards aren't for everyday expenses.  Credit is not evil, the act of the uninformed user is.  Hang in there everyone and let's look forward to freedom!

  • Hello, I just enrolled in the DMP this month and my first payment is scheduled on the 15th with Care One Credit. I did not have the money to pay the creditors this month and had to save the moeny for my first payment with Care One Credit. Initialy I tried to change the due date with the creditors, however was told it was too late. I would like to know now that I am enroled in the DMP do I try to change the due date with the creditors for the folowing month or just leave things the way they are. One of my accounts is with Discover Card and they mailed me a letter asking for a payment of $500.00 when the minimum payment was about 275.00. They are also applying over the limit fees and late charges. I would really appreciate if you could guide in terms of what I need to do.

  • Hello, I just started my DMP last month and I must say I am already stress free and happy. I am one of those people who let my debt get out of hand to the point that I could never pay the minimum due on all of my credit cards. I was dumb enough to fall for the promotional offers from stores to get the no interest for x ammount of months. I completely intended on paying off the balance before the promotion ended but things happen and money gets used on other things. Then I got hit with all of the backed up interest which put the cards over the limit. I was forced to pay some and hold off on others. My life was FULL of stress always wondering how I was going to pay my credit cards and then I found Care One. I started my Care One application on 2/11/09 and made my first payment on 2/15/09. By 2/20/09 all of my collection calls had ended. I recieved two or three calls after 2/15 and I directed them to call Care One and I never got another call. All of my proposals have been accepted. A few of them needed more money, like $2.00 more a month and they accepted. All I can say is the DMP works it just takes a little longer to get started for some than others. I had searched the blogs after applying and I was left wondering if I made the right choice. I  had read a lot of blogs about people starting DSP and the problems they were having with their creditors. So here is a positive story. For anyone reading this, if you can afford the monthly payment, a DMP works if you stick with it. Sorry for writing so much, but I think its important for people to see that this program works. Thanks for reading, Andrew.

  • Those of you that have just started. Really understand that most of the money at first will go to the attorneys and not to building your account. After six months of paying $686 each month I only had about $300 saved in my account. Is this for real? One of my four creditors I only owe $2100. If I would have been saving the money aside myself this debt would be gone. Even without a settlement. What was I ever thinking for joining this program. Just another company fleecing of Americans. I guess I lost $3000 that was non returnable to me.

  • Brooksidevilla - Are you sure you are on the DMP and not settlement?  Settlement means you need to put your money into an escrow and wait for it to be built up in order for proposals to be made.  DMP works differently.  They take and average amount and offer it to the company.  The money you pay monthly, minus the fee, is then sent out to the companies according to the agreements/proposals.

  • Good afternoon,

    DMP and Debt Settlement are two completely different approaches to handling unsecured debt. A traditional CareOne Debt Management Plan is a great option for customers who are able to afford to pay what the creditors are asking, at a reduced interest rate, over a three to five year period. Creditors are willing to extend benefits in return for consistent and timely payments by the plan participant.

    Debt Settlement is a much different approach. Debt Settlement is designed for consumers are no longer able to afford to pay what creditors are asking, either on their own, or through a traditional CareOne Debt Management Plan. Many Debt Settlement Plan customers are already behind on their bills because they have been unable to afford payments. The premise of settlement is to build funds in an escrow account by making payments each month. As the account builds value an offer will be presented to your creditors to accept a lesser amount than what is owed, and what the client can afford. Settlement terms can vary based on the creditor and the amount of money building in the escrow account.

    This particular blog was about DMP. There are other blogs which discuss Debt Settlement as an option to handle your unsecured debt.

    Brooksidevilla, it sounds like you were enrolled in Debt Representation with Persels & Associates. If you have questions about your representation please contact one of their paralegals at 866-939-7252 and I am sure they will be happy to your answer your questions and discuss your legal fees.

    Thank you,


  • IIm heading  into month 3 and so far I am very pleased with the correspondence through my creditors. It seems they all want what i want. To get rid of my debt.  SO far they have worked with me and even if they call or dont accept your proposal, all you need to do is call them direct and they will work with you.Clearing up the debt  It seems to be the common goal.

    Thanks CareOne!

  • When I signed on, I had A LOT of debt. When I learned I would not be debt free for five years, I was discouraged and thought about not doing it...then I figured out how long it would take me if I tried to do it on my own. Yikes. Now, in a blink of an

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