Like we discussed in my last blog, making your payments on time each and every month is important to succeed on your plan.

This is true whether you are currently enrolled in a traditional CareOne Debt Management Plan or a Debt Settlement Plan. We count on you to make your payments on the same day each month, so we can set up payment plans with your creditors.

If the money is not in the account, we can't send it to the creditor, whether it is for a regular monthly payment or a settlement.  

Pick the Right Date in the Beginning 

Be sure to thoroughly review your budget and expenses when speaking to a CareOne coach prior to your enrollment. It is great to identify expenses that can either be reduced, or cut completely. Also, be careful when picking your payment date. Make sure it is not the same time that your rent, mortgage, car payment, or other large bills are due. Set yourself up for success! 

Settlements with Creditors 

Settlements can be completed in one of two ways: either a large one time payment to the creditor, or multiple monthly payments ranging from 3 - 12 months. Our primary goal is the latter. By sending smaller amounts each month we keep the option to settle multiple accounts at the same time as opposed to tying up all of the funds with only one creditor.  

Multiple payment options are set up with the expectation that the funds will be available in your escrow account on the same day each month. If the funds are not available, the settlement can be voided and the creditor may or may not renegotiate the settlement. Worse yet, any funds previously paid are lost if the creditor decides not to renegotiate. It is always best to keep your payment date the same and avoid rescheduling your monthly payment date.  

Obviously things come up, and in some instances you may not be able to make your monthly payment. If that happens, please communicate with us as soon as you know, so we have time to review your options and determine if a payment change will affect a current settlement.  

Bottom Line  

  • Review your budget and cut expenses if possible
  • Pick the right payment date
  • Settlements can be set up with multiple installments
  • If the funds are not available, we can't send them to the creditor
  • Contact us as soon as you can, if you know you can't make your payment