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A CareOne Service Provider Has the Leverage Needed for Lowering Your Payments

CareOne CreditOnce our credit card debt gets out of hand, the minimum payments start climbing and fast. In a short time, you have bills due that reflect the minimum plus past due, late fees, and overlimit amounts but you can’t pay them because you don’t have the money. You urgently need some plan for lowering your payments and providers offering the CareOne service are there to meet that need. Let’s look at the leverage a CareOne service provider has in lowering your payments:

Why would a credit card company be interested in lowering your payments? The reality of the matter is because if they don’t create some way for you to pay them back then they will end up getting nothing or not all if you file for bankruptcy. A Chapter 7 bankruptcy will fully release a debtor from paying the credit card company. But because of the Bankruptcy Reform Act of 2005, the debtor will more than likely only qualify for a Chapter 13 which is a repayment plan but in some cases not all of the debt is repaid and whatever remains after the Chapter 13 plan is complete is discharged. No doubt the credit card companies would look at a debt management plan favorably because there is a potential for the debt to be completely satisfied as long as the debtor keeps up with the single monthly payment to providers offering the CareOne Service.

The key to lowering your payments is lowering the interest rate. If you dropped behind on your payments, you more than likely are under the default interest rate with your credit card which is around 30%. Without the help of a debt management program like the one offered by CareOne service providers, it is next to impossible to get that interest rate reduced on your own. You see, credit card companies are not in the habit of lowering your payments just for anyone who says they are having a problem. If they did this, then everyone would be calling them and telling them about their problem. When the negotiations for lowering your payments come through a reputable debt management provider offering the CareOne service, the credit card company knows that a service provider has already confirmed a debtor’s financial situation.

You can be well on the road to financial health with a combination of lowered payments, savings, budgeting, and reduced or no use of credit cards. When you combine lowering your payments with other sound personal finance principles, you will find yourself crawling out of the debt hole. With lowered monthly payments, you can save more. If you are disciplined in following a budget, you can pay more on your debt as well. And, when you save more, you don’t have to use credit cards. Each benefit derived from a CareOne Services debt management plan and lowering monthly payments builds on each other.

To visit the CareOne Credit Counseling Service’s official website click here.

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