What Is the CareOne Debt Management Package?


Quick Answer

The CareOne debt management plan consolidates a borrower's financial obligations into a single monthly payment through a debt management agency. The agency then divides the payment evenly and distributes it to creditors, states CareOne.

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Full Answer

CareOne negotiates with creditors on behalf of a borrower to lower interest rates, waive late fees, reduce monthly payments and establish a payment plan. The borrower gains independence from creditors at the end of the plan, avoiding bankruptcy. CareOne has built a solid reputation with the Better Business Bureau and creditors. Its credit counselors guide borrowers to choose the right plan among the many available. The agency considers all loans and expenses to make a budget so that the borrower is not tempted to add new debt, according to CareOne.

The borrower informs creditors about the payment plan to stop collection activities, monitors future statements carefully and works closely with debt management providers to address any discrepancies. Most debt management plans take about 60 months to complete, whereas a consumer not enrolled in a plan takes an average of 25 years to pay debts off, notes CareOne. The borrower gains knowledge and learns techniques during the plan that can be used to manage finances in the future.

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