Should I move from a CareOne Repayment program to a Settlement Program?
Date: Tue, 01/11/2011 - 08:47
I have been in a plan with CareOne for 18 months of a 48 month repayment program. They suggested to me today to try the "settlement program". Pros: 1. cut our total payments by $4886 over the remaining period. Cons: 1. we have to voluntarily not pay the creditors for several months until the attorneys negotiate a lower payoff; 2. 3rd party settlement will further damage our credit score and our perceived ability to pay on future loans. 3. If a creditor does not negotiate, then we are out of our original CareOne program and have to negotiate on our own.
Any advice on what to do? Further pros and cons?:confused: We have been in a CareOne repayment program for 18 months of a 48 month agreement. They suggested to us today to use the "settlement program". Pros: Payoff the creditors with $4886 less out of our pocket. Cons: 1. We have to voluntarily not pay creditors and send our payments in to a CareOne escrow 2. 3rd party involvement for settlement hurts our perceived ability to pay for future creditors. 3. Damage to our credit score during months of negotiation between CareOne attorneys and our creditors.
Advice? Further Pros and Cons? Help! :confused:
I think the biggest con is that you're paying someone else to do
I think the biggest con is that you're paying someone else to do something for you that you can do for yourself for free. Why would you do that? Please share more details with us so that we can give you some more specific advice for your situation.
I recognize that the board focuses on DIY. I recognize that regu
I recognize that the board focuses on DIY.
I recognize that regular posters, readers and moderators have had their own success with DIY.
What I cannot recognize as fair and balanced is referring to any approach that you do not personally embrace as a con.
Is there not a better way for you to get your point across?
Quote: Is there not a better way for you to get your point acro
Quote:
Is there not a better way for you to get your point across? |
No, not really. Because that is my point. Trying to settle and/or manage debt is a process that focusses on relief. Paying someone else to negotiate for you, with no guarantee that it will be effective, to me, is a waste of money and, frankly, pointless. That's my opinion. That's my point.
I understand your passion Ohio. I share it for the most part. I
I understand your passion Ohio. I share it for the most part.
I misread your reply. When you said "biggest con" I failed to read it in the context of the OP asking about "Further Pros and Cons?"
Having reread the OP and your reply again, your initial post is spot on.
Far more people are prone to seek outside assistance than will attempt doing settlement for themselves.
Your point about paying someone else with no guarantee of results was applicable to most companies performing settlement services up until recently. With the exception of a few bad apples, most of the industry now charges only after results are achieved. This has the affect of a guarantee in a way. No results, no fee.
I still agree that consumers should look to settle most, or all of their debt on their own. However, some are not cut out for it and there are instances where a pro is better positioned to achieve better results.
Thanks. I do agree that some people aren't cut out to negotiate
Thanks. I do agree that some people aren't cut out to negotiate. Handling the collection calls and documenting everything can be time consuming, confusing and frustrating. Not everyone can do it. :) Most can, however - and it pains me to see people spending more of what they already don't have to dig themselves out. There are so many dishonest companies out there as well as creditors who simply won't agree to a debt management plan or work with anyone other than the consumer. I don't trust anyone else to do it for me :)