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CareOne Debt Consolidation Loan Reviews

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Claire Matthews

Financial Advisor, DCL

CareOne Debt Consolidation Loan Reviews

CareOne Debt Relief Services is located in Columbia, Maryland. The company’s founder struggled with debt in the past and used that experience as inspiration to start this business. According to the site, the company offers a refund guarantee if customers are not satisfied with the results of the chosen service. CareOne also offers debt settlement services, which are handled by lawyers or other negotiation specialists who work directly with creditors to settle debts for lower amounts. These are a few important issues to consider before working with the company.

CareOne Company Reputation

CareOne Debt Consolidation Loan Reviews

This company maintains a decent reputation online. There are a mix of good and bad reviews as is true with any company. CareOne is not accredited with the Better Business Bureau, and there is no information about the company listed on the site. It appears that the company honors its refund policy since there are no negative reviews regarding that.

CareOne Customer Service Reviews

Customer service for this company receives consistently high ratings. There are short hold times in some cases. However, most customers are able to reach an agent quickly. The company is also highly rated for responding to electronic inquiries quickly. Another important aspect of customer service in debt consolidation is keeping customers informed during the process, and most CareOne customers rated communication and updates highly.

Many of us believe that we can deal with out debts on our own, as this is considered the best and even least expensive solution. However, this is not always the case, as most of us suffer from  financial burdens that we cannot get out of. That is why we look around and try to look for options such as outside support. There are those of us who prefer and are more comfortable with this type of support, often deemed as professional assistance to help resolve the financial dilemma.

With the heavy burden of debt, some people may be overwhelmed, and may feel like they have no other choice but to go for another loan. Unknown to them, is that there are actually companies who offer assistance. These are debt relief companies, and there are many out there which can provide the support you may need. There are a number of debt management programs existing and most of them even use online marketing to get people’s attention.

You might say that looking for help, especially from a professional debt service, can be questionable and even costly. However, it is more important to ask is that if it is actually worth pursuing, what will you get by seeking help for your debts?

If you have been watching a lot of television lately, then you might have noticed one company that offers professional debt assistance in the commercial, and that is CareOne Debt Relief Services.

As was stated by CareOne Debt Relief Services, they have reportedly helped more than 4.5 million people settle their debts.

Yet, not everybody with a loan can be a client of CareOne Debt Relief Services, as there are only certain types of loans with which the company will assist. The type of loans welcomed by CareOne Debt Relief Services is an unsecured loan. If you are trying to make ends meet, but somehow fall short when it comes to loan payments, then CareOne may be able to help as a debt service company. Simply, let the company go through your situation and they will then recommend a debt relief plan and even suggest a provider who will assist you to carry out the plan.

CareOne’s Plans

Check out CareOne’s website, and from that you will know that the company is quite comprehensive. Why? They show free resources to support their clients in managing their debts. Apart from that they also present paid services for people who are seeking some extra assistance.

Let us first start with one of their top programs, the CareOne Debt Management Plan or DMP. This debt consolidation program will help substitute all debt payments with another monthly payment that is more convenient to the client. Also, the DMP hopes to generate loan interest rate discounts and to remove fees, which will then lead to savings.

Apart from that the DMP will bring your account current. Many of the creditors who work with CareOne will re-age a customer’s account after receiving three payments. This means that the customer’s accounts, which are past due, will be marked as current.

This program may be helpful, most especially if you are experiencing difficulties with paying the bills monthly. With the CareOne Debt Management Plan, you will then need to dispatch only ONE monthly payment to the CareOne provider. What the provider will do then I that he will distribute the funds you sent to the different creditors. He shall make bargains and arrive at an understanding with these creditors to have the interest rates reduced and for you to stop incurring fees like late fees. The purpose of the DMP is for you to pay off all your liabilities as ably and as fast as you possibly can.

Costs and Benefits of the DMP

Most of the time, it will take at least three months for a customer’s plan and the arrangement made to be in full swing. Three months, because CareOne needs three straight payments to guarantee its customers that the creditors are willing to negotiate. CareOne will then bargain and hopefully will then work out a lesser rate and improved terms, and even adjust fees such as late or missing payment charges.

Remember that creditors are willing to alter the payment schedule and debt responsibilities. But it is not always easy as creditors would need a cooperative environment wherein payments will be made on time, which is something that CareOne will create.

If you do apply with CareOne’s DMP program, then expect to receive an email from CareOne that certain adjustments have been made to you monthly bills. What is good about this is that it may assist with the customer’s credit history. It is best to be proactive and make sure that you make your monthly payments on time, as it pertains to the DMP due dates. However, do bear in mind that not all creditors are flexible. It is best to expect that there might be a number of lenders who may not approve of a reduced interest rate.

Most people who are on the DMP often sees their balance drop by their fourth month. It may take five years for a usual debt management plan to complete. Debt management plans, like the one of CareOne’s, may be suitable and fitting as customers need not worry about making separate payments to different creditors, and instead have a simple monthly payment to one company, which is CareOne.

After all the procedures with the creditors have been made, customers should expect that they will no longer be charged any more late fees. CareOne has been working on building a great relationship with creditors so that they can give you a new plan wherein the loan fees and rate charges will be evidently lessened. CareOne will broker with the customer’s lenders and credit card companies.

Still, it imperative to mention that creditors are treated in different ways and that payment details change with each creditor. One example is when a credit card company may be willing to drop their rate charges by as much as 6%, there are those who will not and charge the client with the usual 12% to 15% APR.

This is where CareOne comes in, as they negotiate to minimize the client’s debt charges. Reportedly, their overall average reduction is 9.9% .

So, if you are normally paying 29% interest on your loans, CareOne may then give you some savings. Nevertheless, there is also a cost when you do decide to get the assistances of a professional debt service.

Other programs that the DMP also offers is its debt counselling from CareOne’s certified counselors.  They also give out incentives so that the customers may keep up with their monthly payments, and these includes quarterly, and even monthly drawing of various prizes.

The Charge of CareOne for their Debt Consolidation Service.

As mostly good things have been said about the CareOne, it is more important to take a look at the numbers. One of which is how much will CareOne bill you for the DMP?

CareOne has been on point when they say that the fees included vary depending on the regulations set forth in the state which you are in. A one-time activation fee should be expected. Apart from that, you will also need to pay a monthly fee that will range from $20 to $50, again this varies per state. Also, another advantage is that CareOne does not ask for a prepayment penalty, which is good when compared to other debt consolidation companies who charge this.  CareOne also vigorously urges their client to meet their debts quicker by hiking the payment sum per month, or as they put it extend some extra cash so that you will finish your debt payments quicker.

Do the math to find out if debt consolidation is worth it

There are many things that you will have to pay if you have a loan. There is the interest charge, the late fees, and other costs. Add this all up for you to see if you will indeed save some money with CareOne’s service.

One prime example is if you have three credit cards and the running balance of which adds up to $3,5000. So, if you reimburse $175 a month on those cards, then choose to go with DMP, the monthly payments will then be lese, as you will need to pay $140 per month. The amount even includes the charges of DMP. Your DMP charge is $30, while you pay the credit card company about $110. You APR will then be lessened by 10%, and it will take you three years to pay off your debt.

Many credit cards have a standard interest rate of 20%. So, if your original $175 per month would take you about two years to pay. The savings you will then receive will vary on the length of time you wish to take to take out your debt, as this will be the basis of the interest rate.

How CareOne’s Consolidation Process Works

CareOne does not offer an actual loan. Their process involves collecting information about the customer’s loans and credit accounts. The company contacts each creditor. There is a legal department that can file certain notices with creditors while the customer pays down debts. Creditors may be paid a certain amount each month, and some may be given priority over others. When CareOne knows how much the monthly payments will be for the combined accounts, they assign one monthly payment to the customer. Also, there is a service fee, which can vary. However, most customers said that the fee was affordable when combined with the monthly debt payment and compared to what it would cost to pay each creditor individually. The customer continues to pay the monthly amount until the debts are paid off. This may take a short time or several years depending on the amount of debt and the chosen monthly payment.

CareOne Consolidation Reviews

One complaint that was posted by several people was that some credit card companies refused to work with CareOne, which was not disclosed to them. This created problems for several people who had significant credit card debt. Most people rated the service highly in the beginning. The first year or few years were usually smooth. However, many people complained about the last several months. Some reported inaccurate amounts being billed or said that they were billed for accounts that had already been paid off. A few other complaints addressed accounts that the customer was being billed for but were not being paid off and were accumulating interest.

Is CareOne The Best Choice?

For those who have a lot of personal loans, medical debts and other accounts, this may be a good solution but so would a Lendingtree debt consolidation loan. It is wise to ask the company if they work with certain credit card companies before signing a contract if most individual debt is from credit cards and store charge cards. CareOne’s fees seem to be less than top competitors and similar to some of the less-popular competitors. When shopping for a consolidation loan or debt relief services, always compare at least five different companies. Be sure to consider prices, benefits, time estimates and company reputation before choosing. Also read how to get a debt consolidation loan with bad credit.

Claire Matthews

Claire Matthews

Financial Advisor, DCL

Claire is a noted financial writer and author of hundreds of articles about personal and business finance. Before getting her MBA, she graduated with a BS in Economics. Her coursework focused on the different ways that debt, debt structure, and debt restructuring affect micro and macro-economic issues.

Upon graduation, she took a job at an investment bank that worked with municipal and county governments to help them reorganize and structure their debt so they could continue to provide essential city services.

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