I listened to Debt Management Services...

[wrt98225]

I listened to the Debt Management Service from CareOne.com which sounded pretty good. I had just short of $20,000.000 in credit card debt. Just wanted to make one payment until amount was paid off. 2 problems:

1-The amount would only save me $68.00 month over from what my minimum payments are right now. They have a $42.00 service charge each moth. Their contract is for 52 months.

2-Care One would send the payment to each creditor until they accept the offer. You enter into that agreement without knowing the particulars for sure. Plus there is G. E. Bank who rarely approve the proposal. So that is a bad effect.

[AngelinaCat]

Hello wrt98225. Welcome to the forum.

I moved your post from that very old thread you tacked it onto, into a thread of it's own. This way your post will be better seen and responded to.

You don't seem to have a question, just a statement. So how can we help you?

[Drazil65]

Yes, they do have a way of making it sound like the best solution for your financial issues and convincing you that bankruptcy is evil! Are you asking if there is a way to get out of the contract or the program with them at this point?

[frogger]

52 months continuing to destroy your credit, knowing that some of your creditors probably won't settle, plus paying someone a fee to handle your money?

What a deal. For them..........

Run, run, run, as fast as you can away from this "deal".

[mountanddo]

It's funny how I never noticed these commercials until I contemplated filing bankrupcy. I hate their advertising jingle! Anyway, I never understood until I came here that they have to negotiate with your creditors. Ignorantly, I just thought that when you entered into an agreement with them that they had some special way of getting your creditors to accept payment from them. I am glad that I found THIS site before I went that route. I'm also guessing that you have to sign some kind of contract with the DC and if you default on that it's just another mark on your credit. I'd much rather explain that circumstances forced me to file BK than failing at a DC program and then having to file.

Question: Does using Careone stop the interest from accruing or do they need to negotiate that as well? I'm assuming that they try to negotiate with each creditor and use the tactic that the consumer's next step would be bankrupcy but I'm not sure how that works.

[Flamingo]

It's funny how I never noticed these commercials until I contemplated filing bankrupcy. I hate their advertising jingle! Anyway, I never understood until I came here that they have to negotiate with your creditors. Ignorantly, I just thought that when you entered into an agreement with them that they had some special way of getting your creditors to accept payment from them. I am glad that I found THIS site before I went that route. I'm also guessing that you have to sign some kind of contract with the DC and if you default on that it's just another mark on your credit. I'd much rather explain that circumstances forced me to file BK than failing at a DC program and then having to file.

Question: Does using Careone stop the interest from accruing or do they need to negotiate that as well? I'm assuming that they try to negotiate with each creditor and use the tactic that the consumer's next step would be bankrupcy but I'm not sure how that works.

Over the years there have been so many postings about these "savior" companies but all that happens is that they work to get interest charges "reduced/lowered" with the creditors and then on top of that charge their own fees so if one really does their homework and figure it all out, your credit is still trashed and interest still accrues. People are desperate when in financial problems and usually turn to the quickest solution which can be the worst thing they can do....

[IamOld]

Guys I have to tell you that I too signed up with them - very PERSONAL reassuring service...until you signed up with them...then nothing- just talking to someone in India, who cannot help...we negotiated with everyone but ultimately we needed to go to the "top" at Chase, etc. - we were able to "Settle" with everyone BUT HSBC unsecured loan - hence we're here...

At any rate, CareOne makes it sound like they will work with you and your creditors - but once you're a client they actually do VERY VERY VERY little for you other then send out automated proposals to your creditors.

[buzzstpoint]

I contacted a debt solutions company.

During our conversations he asked if I had any room left on my credit cards? I said no. This was a problem for him, Then after talking, a bit more since we both have direct deposit availible, we would have to direct deposit into their account, From there they would send us a check for living expenses.

This is where out phone conversation ended. Then I started asking around, my parents know someone who when through the debt management. 5 years of still being completely broke, phone calls and letters. They haven't even begun to make a dent into the debt.

After finding the requirements for a BK, it made my decision an easy..

[jange]

I also contacted one of these companies during our desperate times, but I could not afford the payment and I never went any further. It wasn't much lower than I was paying the credit cards which I couldn't afford. If I remember correctly my bk is about $600 lower than what they quoted me. I think I made the correct choice.


22 payments made!

[BKAttyMI]

With a "deal" like that WRT, just do a Chapter 13 if you're set on paying off the debt. Otherwise look into a Chapter 7. Look up some of the statistics on successful negotiations like this, they are very very low.

[karm43]

Not to mention IRS between their fees you are probaly paying more then you owe. Their in it for MONEY, they thrive on people who cannot pay their bills.

[lillymarlene]

I too contacted a debt management company back in 2009. The person I spoke to seemed to badly want to sign me up, into a payment I knew I really couldn't afford, and this scared me. I just felt too pressured. Luckily I just ran in the opposite direction.

[2sad4this]

I have to agree with NOT going the debt management way. After 18 months and still being sued we filed BK. What is really funny, or maybe justice, is this debt management company recently went BK!! RUN AWAY from all of these companies! If you are to the point of charging everything you need in order to make minimum payments, nothing except filing BK will give your life back. We were discharged in Feb 2011, and we still have not used a credit card. We are saving for the things we WANT so we have the money for what we NEED. It was a very hard lesson but we are still completely debt free for now. Luckily we haven't been sick or hurt. It takes hard work to stay debt free but it is very much worth it!!!

[fslady]

Absolutely run away! I contacted a debt management company too and my payments would stay pretty much the same and I couldn't afford those anyway. BK13 has saved my sanity, restored my happiness - and I have 3 payments left to go out of 60!

[kornellred]

There is only one sure-fire solution to debt problems, and that is bankruptcy. You are only fooling yourself if you think otherwise.