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I Have Been with CareOne for 3 Months and I Am Having Difficulty Paying the $594 Monthly Payment. – Jim

“Dear Steve,

I have been with CareOne for 3 months and I am having difficulty paying the $594.00 monthly payment, behind one month on car.

What can I do?

Jim”

Dear Jim,

For those that are not aware, CareOne is a credit counseling company. They probably put you on a debt management plan and organized your debt into one monthly payment. If you are struggling with that payment, you should call CareOne and speak to a counselor about it and see what they can do.

In a credit counseling program the monthly payment is calculated based on what the creditors want, not based on what is realistic or sustainable for you. There are many drawbacks to a debt management plan but tbesides bankruptcy it is a logical approach to eliminating debt in many situations as long as the monthly payment is affordable.

So it might just be that a debt management plan is not affordable for you but before we jump to any conclusions, you must call CareOne and see if they can lower your payment for you at all.

If they can’t, it does not make sense for you to commit yourself to a credit counseling program that might lead to the loss of your car because you can’t afford the car payment after making a payment towards your credit cards. Unless you live next door to where you work, I bet you need the car to get back and forth to income. Don’t lose the car or at least a car. Mobility = income.

You’ve now tried the debt management approach so if CareOne can’t lower your consolidated payment any further then bankruptcy might be in your future or at least the next step to be considered. Click here for bankruptcy information.

Please come back and let me know what happens.

Steve

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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