There are significant differences in how debt consolidation works to help you pay off your debts and how debt settlement works to pay off your debts.  For consumers researching debt relief programs, taking the time to understand how each of these debt solutions works is the key to success.

Once you have enrolled in a debt relief plan, switching plans is not something to take lightly.  This is particularly important if you are trying to change a debt settlement to debt management.

There are many things to consider before making the switch from a Debt Settlement Plan (DSP) to a Debt Management Plan (DMP).  

Can you afford the monthly payment for the Debt Management Plan? 

If you are currently enrolled in a DSP, then it is probably because you were unable to afford the monthly payment that the DMP required when you originally contacted us. Maybe the monthly payment did not fit your budget and perhaps you were already behind on your creditor payments.  Your circumstances would need to have changed to make switching plans a good choice.   

How long have you been on the Debt Settlement Plan? 

If you have been enrolled in your debt settlement plan for longer than a few months, the DMP may no longer be a good option.  Your accounts will have become delinquent and your creditors will not be receiving payments until they are willing to negotiate a settlement.  

Consult with a Certified Credit Counselor. 

Please contact us so we can discuss your options and determine if it makes sense for you to switch to a DMP.

While settlement can be difficult at times, it is important to remember your initial goal of becoming debt free. When you enrolled, the DSP seemed to be the option that best suited your situation. It will take time and patience; but remember, CareOne is here to help you along the way.