We are answering our customer's top questions regarding their participation in the Debt Settlement Plan (DSP).

We want our customers to find continued success by fully understanding their plan and what it takes to be successful.  

This month's question: Why do I have to stop paying my bills?  It sounds odd, right? You have never been late on a payment and we want you to start now? The goal of settlement is to settle your debt for less than what you owe. Here are the reasons this is necessary.

  • Delinquent. For settlement to work, your accounts must become delinquent. This means that a creditor will not receive a payment until they have agreed to a settlement amount, which does take some time.
  • Experienced firm. Working with an experienced firm who has strong creditor knowledge and solid relationships is critical to your success.
  • Consider a DMP. If you are able to pay your monthly bills on time, you may want to consider a Debt Management Plan (DMP) before you continue on a Debt Settlement Plan (DSP). For more information on the difference in plans check out this blog.

Settlement can be difficult, but remember we are on your side and here to help. If you have a question you would like to see posted please feel free to leave it in the Comments section or, ask directly in our Ask the Expert Forum.

Suzanne Cramer

Suzanne is a certified credit counselor working in our Ask the Expert forums as a coach and a Social Media Specialist for CareOne. Suzanne writes for our Blended Finances and A Straight Talk on Debt blogs.  As a soon to be divorced single mom, Suzanne also writes for the Divorce, Debt, and Finances blog. Ask her questions, share your story or just follow Suzanne on her journey as she navigates dealing with divorce, debt, and finances. Suzanne is also very active on Twitter and manages two CareOne accounts: ADivorcedMom and Ask CareOne where she shares the latest debt industry news and tips to keep your finances in check.