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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  • I just signed up and have read some of the posts and other comments on the web. One thing I noticed is that these bills may be turned over to a collection agency. While I have never had that happen in my life, I do not want it to happen now. Is this a common occurance?  Can they also garnish my wages for not paying?

  • I made my 3rd payment on Oct 19th but I'm not being credited. What is the status of my account.

  • Hi everyone, just thought I would send a little note of being so scared cause I have been getting my bills where the amount owed is getting higher even if Care One is paying them. I have a great friend who went with Care One and he is  debt free. He said tonight  if I don't want to stay with CareOne that all I have to do is say no to them. Well, after I have read some of the notes written by you all, thank you. I needed to see where I was at with CareOne. This was meant for me to stay with Careone. I have alot left to pay but it is a beginning. Thank you again CareOne.

  • If you are like me, you had every intention of paying your credit bills on time.  It seems something always comes up that requires extra money and thus leaving you short to pay some of your credit bills.  The CareOne plan has been so much help for me that I cannot urge you enough to get started on this plan.  In 3 months I have already paid off one creditor.  We started by applying a big payment to the smallest balance creditor and then once that is paid off on to the next lowest balance and then on to the next, etc.  I have CareOne automactically withdraw my payment to them from my checking account.  Thus, that keeps me from letting payments to my creditors slide.  We all know the economy is in bad shape and will probably get worse before it starts to get better.  Use CareOne to help you mitigate your credit problems and get yourself back in good financial stability.  It is a good feeling to finally see a light at the end of the tunnel and it not be a freight train.

  • Well i'm on my way.  Making all my payments on time.  I just have one question i'm getting charged and interest charge should i pay that or let it go? If i let it go my amount is gonna go up. And yes to all people on plan you need to call creditor for balance because the one cc balance is wrong the cc company gave me a number to call.  they said i should call every month not to go by bill.

  • I'm not a shame to ask for help from DMP , I wasn't a shame when I was creating the debt, until it got out of control.  I have ask GOD for forgiveness because I allowed my debt to control me. It's sad when you find your self working just to pay bills and have no money for anything else ... like groceries, gas, child graduation, but GOD continues to show us a way out but are we paying attention.Thank you JESUS for DMP .

  • I am paying my 3rd payment and I noticed that my monthly contracted payment has been INCREASED!! What's with that? I have emailed Care One 3 times with no response. Why did my monthly payment go from $389 to $425. That's a big difference when your on a tight budget, not to mention it would help to have received a call or an email telling me why the payment went up. Makes me want to quit this service!!

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