Today I will explain some facts.
Before you even decide to enroll in CareOneCredit’s program, you absolutely HAVE to own your problem. You need to understand what made you get into debt in the first place. Be honest with yourself.
Understand that having more than one credit card is NOT a must! Once you make peace with your situation, make the decision to truly and honestly work at this. One credit card is more than enough. Keep a card for emergency expenses and not to splurge into shopping frenzies, or go to restaurants every week.
Talk with the credit counselors and DO NOT stop making payments to your credit cards, until all the proposals that CareOneCredit will send to your creditors are accepted. There is no reason to panic, or make nasty remarks on their website. I’ve read through the years, posts by many of you that say this program is terrible, that your credit collectors keep calling you.
Credit counseling is NOT your nanny. These services exist for people who are ready to embark in a difficult task to get debt free. If you follow the rules and do what you must, have no doubt that in time you will be debt free.
I am aware that if you had the money you would pay your cards off and this is your reason to ask for help. BUT you can still make the minimum payments to your cards for another month or two. Most credit card companies are happy to accept the proposals, because they are sure that your debts will be paid off.
If a credit card company does not accept a proposal, it is NOT CareOneCredit’s fault. It is usually their policy. This is rare though. I talk from my own experience. I was ready to accept my responsibilities, did all the work and am now debt free.
If you have money to make the monthly payment to CareOneCredit, then you sure have some money to make the minimum payments to your cards. This is no game and you must face the fact that you made some mistakes. We all make mistakes, but we can correct them.
So be a grown up, take the first step and get out of debt as fast as possible.
Another issue I keep hearing that makes me mad, is that a lot of people complain about their credit score taking a dive. Well, when you are up your ears in debt, your credit score is shot anyway. Why do you even care about your credit score when you are in debt? What can you possibly buy when you can barely pay off your debts?
Rest assured that your credit score will be going up in points as you pay your debt off. The credit score is important for loans, car purchases, and home loans. If you tell me that while in debt you want to make any of the above mentioned moves, then I have to say to you that you will NEVER get yourself out of debt. Do not be impulsive. Be honest, be ready to do the work and get rid of this burden once and for all.
My third part will be about people getting right back into debt after paying off their first debt.