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  #1  
Old 02-07-2008, 06:13 PM
Angel143 Angel143 is offline
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Care One Credit Counseling....heard of it???

I just finished speaking with an agent at Care One Credit Counseling about my debt and a lady who was very nice had helped me. She had put me on Debt Management Plan so I can pay off all my debts. She had lowered my bills from $17k to $4k, since an auto loan($8500) and a credit card ($3800) my dad payed off. So my total bill went down to $4k. I did add up all my debt and it came out to almost same amount. I have never done this kind of thing before, so I was just wondering if any one have heard anything about Care One? Also, if Debt Management Plan:frustrated: a lot better than consolidating??? After getting off the phone with her, another company name American Financial Service (I think) had called me. I tried to let her know that I went with another company. So she started asking me a few questions and I told her the situation with Care One. She mentioned that no one legally can take down your debt from $17k to $4k without me actually paying off any of my debt. So now, that made me kind of curious if she's only saying it for me to go with their company. The thing is I did add up my debt after taking off the car loan and one credit card debt, it summed up to what the lady in Care One had said. So pleeeease....help me! Let me know if you know anyone that went through Care One Credit Counseling and if Debt Management Plan is better??? Thanx!
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Last edited by Angel143 : 02-07-2008 at 06:20 PM.
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  #2  
Old 02-07-2008, 06:22 PM
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katiescorner katiescorner is offline
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Re: Care One Credit Counseling....heard of it???

Well first, when you are figuring your debt why would you deduct your car and one credit card? Those are part of your debts so where are they coming up with the 4K?

Typically what these places do is work with your creditors to get your payments lowered and the interest rate lowered.. it really doesn't lower your debt just your payments.. on top of that though a certain amount goes to the credit reduction place..

In all honesty, you are better off calling your creditors yourself, asking for a lower interest rate and if you have late payment fees, etc, you can ask for part of that to be removed yourself, and make arrangements for payments you can handle.



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Old 02-07-2008, 06:56 PM
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borisf96 borisf96 is offline
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Re: Care One Credit Counseling....heard of it???

Quote:
Also, if Debt Management Plan a lot better than consolidating???
Consolidating is basically putting all your unsecured debts into one secured debt with lower interest rate. Usually it is achieved by putting your debts on your home loan. This way your debt becomes more secured and therefore it is possible for creditor to live with lower interest rate.
http://en.wikipedia.org/wiki/Debt_consolidation

Not all debt consolidations work this way. For example Student Loan Debt Consolidation will sum all your student loans and will assign interest rate proportionate to interest rate of student loans included.

Debt Management is the totally different animal. You basically negotiate with creditors usually though some none-profit agency to lower your interest rate.
http://en.wikipedia.org/wiki/Debt_management_plan
If you chose Debt Management make sure that you are paying directly to creditors. We have plenty of people complaining that they are in bankruptcy because they paid to Debt Management and they delay payments to creditors for up to a year.
Also if you chose to use none-profit agency, make sure it is on IRS' list.

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  #4  
Old 02-07-2008, 09:23 PM
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katiescorner katiescorner is offline
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Re: Care One Credit Counseling....heard of it???

Thanks Boris, I meant to describe debt consolidation and forgot to. There was a time I did do a debt consolidation and it was just a signature loan but it was a great relief. I was able to pay off everything with just one payment a month.. these days it's hard to do it on a signature loan but doesn't hurt to try if you are at a point that you need to get things into just one payment.



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  #5  
Old 02-07-2008, 11:36 PM
kdrifter340 kdrifter340 is offline
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Re: Care One Credit Counseling....heard of it???

I have been looking around on this forum for a year but after seeing you post I needed to register.

We fell victim to one of these credit counseling companies.

The whole idea is they settle your debts for "half" of what you owe.

First they take your down payment of $1000 plus half of you payments per month that go into your settlement account.

You stop paying all your debts when you start the program. The debt collectors start calling you 50 times a day.

We had about $43,000 in debt and stuck with the program for about 1 year. We paid $300 a month into the settlement account the counseling company took $150 a month in thier fee. After the year we had about $1500 in our settlement account which was nothing close enough to settle $43,000 in debt. Every debt had been sold off with interest and late fees after the year our debt was around $80,000. We got court summons one company was suing us for $10k we called the counseling place to ask what to do It took them 2 month to call us back. They then told us we were screwed they could not help us with this $10,000 debt.

Next we had no choice but to file bankrupty. We did NOT do this sooner because everyone told us "laws changed" and they make you pay back your debt which we then found out is not true.

SO THE POINT OF MY STORY IS AFTER IT YOU SPEND 3 YEARS SAVING THE MONEY TO SETTLE THE DEBTS THE $17K WILL TURN INTO $30K WITH FEES AND LATE CHARGES AND YOU WILL END UP REPAYING WHAT YOU OWED. THEY REALLY DO SETTLE YOUR DEBT BY 40% BUT THEY DONT TELL YOU IT WILL BE THE SAME YOU ORIGINALLY OWED.


Last edited by kdrifter340 : 02-07-2008 at 11:46 PM.
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  #6  
Old 02-07-2008, 11:48 PM
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Silverrain Silverrain is offline
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Re: Care One Credit Counseling....heard of it???

I'm a bit confused about the auto loan and credit card you mentioned. Your dad's paying them off? That WOULD technically reduce what you owe, but that wouldn't mean that the consumer credit counseling (CCC) company is paying it! Make sure you understand who's paying what before you start sending money.

Look up "Careone Credit Counseling" at http://www.bbb.org. I don't want to post the full (long) report, but assuming that the company I looked at is the same as the one you're working with (located in MD?), they have a satisfactory record. There's also a note about a "Care 1 Credit" company, claiming to do business at the same location, that does loans. Don't confuse on with the other! But don't take my word for it.


I've done a bit of talking to credit counseling outfits too, and I think the best advice I can give is to remind you that many (most?) online CCC companies are for-profit. Never just assume that they are acting in your best interests! Do NOT sign anything or send money until they've answered all your questions and the whole process makes sense to you. (Maybe your dad can help you with this?)

One simple gauge of how *ahem* profit-centered they are is to take down the phone number and tell them you'll think about it and call back tomorrow. If they say "Okay, thank you, bye", good sign. If they start in with the high-pressure sales tactics, they're probably more interested in getting your money than in really helping you.

Another good question: HOW will they negotiate with your creditors? True story: one "debt management company" actually told me that for $59 a month, they would hold my $450 monthly payments and stop paying on my accounts until they were about to be charged off or litigated, then use the cash pot to "negotiate" settling the accounts for pennies on the dollar. (No, they didn't request Western Union payments, for anyone who's wondering.) If the agent won't explain their tactics, or if the process sounds dishonest, skip it.

Also: How will they disburse funds so your credit rating doesn't get any worse (i.e., making the minimum payments)? If the answer doesn't make sense to you, don't sign up.

Finally: Does the whole thing sound too good to be true? Do those estimated payoff times and savings amounts really make sense? Have you contacted your creditors to see if they can make a better deal with you? Again, don't be embarrassed to call a timeout and think it through before you sign up.

Good luck.


EDIT: I see kdrifter340 posted while I was typing. I guess it wasn't just me. Sorry about your loss.
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Last edited by Silverrain : 02-07-2008 at 11:51 PM.
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  #7  
Old 02-08-2008, 12:57 AM
Angel143 Angel143 is offline
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Re: Care One Credit Counseling....heard of it???

Quote:
Originally Posted by Angel143 View Post
I just finished speaking with an agent at Care One Credit Counseling about my debt and a lady who was very nice had helped me. She had put me on Debt Management Plan so I can pay off all my debts. She had lowered my bills from $17k to $4k, since an auto loan($8500) and a credit card ($3800) my dad payed off. So my total bill went down to $4k. I did add up all my debt and it came out to almost same amount. I have never done this kind of thing before, so I was just wondering if any one have heard anything about Care One? Also, if Debt Management Plan:frustrated: a lot better than consolidating??? After getting off the phone with her, another company name American Financial Service (I think) had called me. I tried to let her know that I went with another company. So she started asking me a few questions and I told her the situation with Care One. She mentioned that no one legally can take down your debt from $17k to $4k without me actually paying off any of my debt. So now, that made me kind of curious if she's only saying it for me to go with their company. The thing is I did add up my debt after taking off the car loan and one credit card debt, it summed up to what the lady in Care One had said. So pleeeease....help me! Let me know if you know anyone that went through Care One Credit Counseling and if Debt Management Plan is better??? Thanx!
What I meant for the credit card loan was, before my dad had passed away a few years ago, the credit card company has contacted him to see if we wanted to settle and pay $3500 for my $5000 CC bill. Which he did, but it is still on my credit report. So the agent that helped me said that I should call the credit card company and talk to them about getting it off my record because my dad had paid it. And for my car loan which was repossess around 2005, well my mother had filed bankruptcy in the middle of last year and since my dad had co-sign for the car, my mom had put the car loan with her bankruptcy debt. So the agent from Care One Credit (which by the way is at MD ), also told me that I shouldn't worry about the debt since my mom included it on her bankruptcy. Well, that's how my debt reduced from $17k to $4k. She also mentioned if I paid $200 a month, all of it should be paid off within a year to a year and a half. Everything she was saying was actually making sense and seemed like she was actually helping me out. What do you all think?
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  #8  
Old 02-08-2008, 01:32 AM
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Silverrain Silverrain is offline
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Re: Care One Credit Counseling....heard of it???

Quote:
Originally Posted by Angel143 View Post
What I meant for the credit card loan was... (snip) Well, that's how my debt reduced from $17k to $4k.
Ohhhh. Got it. Well, if you contact the creditors and they agree that the debts are settled, then you may also have to report the inaccuracy with the credit reporting agencies (Equifax, Transunion, Experian). I don't think they can remove items that are discharged by settlement or bankruptcy, but they may be able to modify the items favorably. Do you have any documentation that the debts were settled, i.e. court records, account statements, bank statements? You may want to dig them up, especially if the creditors still have their hands out.

I'm sorry about your dad, BTW.

Quote:
Originally Posted by Angel143 View Post
She also mentioned if I paid $200 a month, all of it should be paid off within a year to a year and a half. Everything she was saying was actually making sense and seemed like she was actually helping me out. What do you all think?
I wasn't there so I can't say, but I can look at the numbers you mentioned...
(run calc.exe)
Assuming that the amount you end up owing is in fact $4000, if you pay $200 a month, it would take 20 months to pay it off--a year and eight months. That calculation assumes that there is NO interest and NO other fees.
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Last edited by Silverrain : 02-08-2008 at 01:36 AM.
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  #9  
Old 02-08-2008, 10:03 AM
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katiescorner katiescorner is offline
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Re: Care One Credit Counseling....heard of it???

So your total debt is only 4K? I wouldn't even go to a credit counselor for that amount. Even if they are only charging you $25 a month for the service (even the non-profits charge a fee) that is $300 a year that could be going towards your debt.

Call your creditors and work out a payment plan on your own. If you have $200 a month to pay off the debt you should easily be able to get it worked out without throwing your money away.

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  #10  
Old 09-02-2008, 06:37 AM
Anin Anin is offline
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Re: Care One Credit Counseling....heard of it???

I can't remember how I found out about Care One Credit but I think it might have been a commercial. Back in 2003 I got into an accident and it totaled my cheap car. I had just started college, and being the irresponsible youth I was, I also had a nice amount of credit card debt. I had to get a new car and pay for it on my own so I decided to go with debt consolidation so I could afford my car payment. These companies will not reduce the amount of debt you pay by 40% and I don't know how anyone could think that's legit. But Care One Credit has helped me since 2003 and after being on a 5 yr plan, I'm almost done (only a few more months). Sure living on cash for 5 years has sucked but I'm much more inspired by the fact that I'm not getting nasty debtor calls anymore.

BTW, I did call my credit card companies prior to consolidating and they pretty much laughed at me. So, I don't believe that method works 100%. You can try it but if your credit card companies push you aside like mine did, then going with Care One is another good option.

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  #11  
Old 09-02-2008, 06:41 AM
Anin Anin is offline
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Re: Care One Credit Counseling....heard of it???

Quote:
Originally Posted by katiescorner View Post
So your total debt is only 4K? I wouldn't even go to a credit counselor for that amount. Even if they are only charging you $25 a month for the service (even the non-profits charge a fee) that is $300 a year that could be going towards your debt.

Call your creditors and work out a payment plan on your own. If you have $200 a month to pay off the debt you should easily be able to get it worked out without throwing your money away.
Paying off 4k on separate cards with a high interest rate and on a low wage on top of that can definitely be hard to pay off. I'm not sure why you think it would be simple, perhaps it looks simple on paper.

Calling your credit card companies doesn't always work, especially if it's a student visa card sort of company.

Consolidation gives you one manageable bill and I know that Care One will help you with a manageable bill.

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  #12  
Old 09-02-2008, 06:47 AM
Anin Anin is offline
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Re: Care One Credit Counseling....heard of it???

Quote:
Originally Posted by Silverrain View Post

Also: How will they disburse funds so your credit rating doesn't get any worse (i.e., making the minimum payments)? If the answer doesn't make sense to you, don't sign up.
From my experience, they have you list all your credit cards or other debts to be paid and then they contact them to work out a new APR and payment amount. I had four cards at the time I signed up and each had a 22% APR. They were able to get it down to 9.99% APR and then we given a minimum to pay every month. The sum of all minimum payments and their fee was the amount I pay to them each month and then they would pay my debtors. You can add other debts at any time or adjust your payments to pay more if you like. I added a store card a year ago and when one of my original credit cards was paid off, they took that money and increased the amount paid to another card to get it paid off quicker. So, same payment, faster pay off, works for me.

Also, their customer service is great. It's not that this company is too good to be true, but I haven't felt ripped off or anything.

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Old 01-06-2009, 05:52 PM
ksppcut ksppcut is offline
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Re: Care One Credit Counseling....heard of it???

We have actually been in their program since February. While the other lady is partially correct, no company can guarantee to settle your debt for a said amount. The company will negotiate with the creditors to reach an amt. We have been very pleased with Care One, and have even settled two of our smaller accounts already.

do realize that if you have large amounts of debt and a small monthly payment, it will take a few years to build up your reserve to pay off those large accounts.

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Old 01-22-2009, 11:14 AM
mangomelon mangomelon is offline
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Re: Care One Credit Counseling....heard of it???

I am so happy to hear of other people who are having a good experience with Care One. I have been with them for 6 months and have been very happy so far. Whenever I hear about people who are not happy with the service, it ends up being someone who does not understand the process.

For the person who said not to use a company whose process sounds dishonest (like not paying you bills for a long period of time) and also who said the best thing is just to talk to your credit company yourself - the credit companies are not willing to to negotiate these days. I called all of my companies - I was told I did not qualify for a reduced intrest rate and they would not even lower my minimum monthly payment. Not a single person would negotiate with me, and yes I did ask to speak to supervisors. The only way they will negotiate is if they are not getting any money. So while it does not sound like the most upfront thing to do - this is their game and we just have to play along.

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Old 02-27-2009, 11:50 AM
kyletonya0106 kyletonya0106 is offline
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Re: Care One Credit Counseling....heard of it???

I never join these things,but i went online to update mine, and my husbands careone account, and this scam thing popped upi under careone site, and i said Im going to read this, so hear i am. I had to write and tell you I have been on this plan for 2 years, it is the best thing I have ever done. I seep better at night, i have never had one creditor call me since my first payment. I check with my crediters monthly to make sure everything is on track. They did take off all the late fees, and intrest that added up when i was got behind. Crazy enough i watched an opres show one day a few years ago, and she actually would bring people to the show and get them started on careone because its non-profit. I would say for you to stick with it. I LOVE IT! It has really changed my life for the better!

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Old 07-07-2009, 06:13 AM
NavyChief40 NavyChief40 is offline
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Re: Care One Credit Counseling....heard of it???

Has anyone used care one for debt settlement? If so how was the process. I am a 17 year Navy guy that would like to have my debt paid off by the time I retire at about 22 years of service. Any advice?


Last edited by NavyChief40 : 07-07-2009 at 08:05 AM.
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  #17  
Old 07-21-2009, 04:52 PM
readthefineprint readthefineprint is offline
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Re: Care One Credit Counseling....heard of it???

Before enrolling in any program with any company you must first understand the different processes. More people get in trouble by signing on to a program thinking they know what they are signing up for and then finding out it is different. Debt settlement and debt consolidation are two different animals. The first is for people whose only other option is bankruptcy--debt settlement is not an option for anyone who has any reasonable means to repay their debt. Debt consolidation normally requires obtaining a loan (secured by your home in most cases) and using it to pay off all your debt. You still have the debt (obviously) in the form of your new loan, however the interest rate is generally much lower. Credit counseling in most cases offers some form of education helping people better manage their finances...plus some companies will deal with your creditors to negotiate better terms.

So before asking about a specific company (granted it is very important to research companies) you must first find out what your financial situation calls for......the processes are not interchangeable and each has the potential to either get you out of debt or turn into your worst financial nightmare. Reduce the chances of this happening by educating yourself first! Good luck and remember to read the fine print!

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Old 09-21-2009, 07:13 AM
roxyblue roxyblue is offline
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Re: Care One Credit Counseling....heard of it???

I actually have a little experience with this one. I used another service several years ago and they helped me out. I just thought I could use a credit care 'right' this time. Lovely thought but then I lost my job and all of those big payments I was making were gone! And this time I was married so I was also affecting my husbands financial well being also. I tried talking to the credit card companies like they tell you on all of those internet sites that talk money, and I was pretty much told to pack sand. I went with Care One after looking over the BBB and contacting a couple others. I also had one tell me to stop making payments, that was to prove I really needed help. Then I was to pay an attorney every month so they could make my payments. And all of this was so that it would look better on my credit report. Supposedly it would look better to have an attorneys name on my credit report rather than going bankrupt or paying back all that I owed. They would make my debt dissappear in 2 years. When I let them know that I wasn't trying to get out of paying what I had charged up I was told that it wasn't in my best interests to pay all of that money back. I talked to other people in the financial industry, it just didn't sound right to me. I found out that some of what I was told was out and out lies. I went to Careone and they seemed pretty up and up and I investigated them thoroughly. Don't fall for the easy way out. It's not the easy way.

I have determined that I will not do well with credit cards, I am slowly learning how to get along without them. It sucks but somehow my parents and grandparents did it and so can I. I can't blame the credit card companies, they just gave me the cards but they didn't force me to use them. I put myself at thier mercy and it will stop, in about 5 years.


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