About CareOne

Television viewers are inundated with commercials about how to solve their debt woes. The fact is that there is no quick fix for repairing credit issues. Since 2002, CareOne Credit Counseling has provided Americans with debt management resources to repay creditors and restore their financial well-being.

Function

CareOne is the largest credit counseling agency in the United States. They have worked with 4.5 million people to reduce their personal debt load, including debt management and counseling programs. According to its website, CareOne worked with its customers to submit more than 9 million on-time payments totaling $820 million in 2007.

Features

The primary service offered by CareOne are debt management plans. The plan assists people who struggle to make minimum monthly payments to their creditors. Rather than making payments to multiple creditors, the plan accepts payment from a customer and disperses it on their behalf. Debt management programs can negotiate better terms, usually though lower interest rates and removal of late fees. CareOne advertises that its programs can zero out balances within 3 to 5 years, rather than the 25 years it takes if a person pays the minimum payment each month. By reducing the interest rate, more money is applied to the principle, whereas minimum payments to credit card companies cover mostly interest.

Features

Another service provided is settlement. CareOne facilitates settlements between a law firm representing its customer and the credit card companies. The legal settlement determines a mutually acceptable amount for repayment and sets a repayment schedule for the debtor. The period of settlement is usually 3 to 5 years. While the debt is paid off, a customer's credit score is usually affected negatively as a percentage, not the full debt, is paid.

Features

If debt management and settlement are inappropriate for a particular person, CareOne will facilitate a relationship between a customer and a national law firm to proceed with bankruptcy. The last line of debt repayment, bankruptcy is the reorganization of debt that protects a person from foreclosure and seizure by creditors.

Features

Outside of debt repayment, CareOne also provides extensive credit counseling services. Its education program centers on teaching people how to set budgets, make smart spending decisions and use credit wisely. These services are considered vital, as people exiting debt management programs may have difficulty rebuilding their credit. In addition, CareOne has resources for financial planning, including advisement on retirement and savings plans, as well as home buying and car buying information for people in debt management.