Question:
Dear Steve,
I have seen you know a little about ClearOne Advantage debt settlement, and I went with them thinking it was the best solution for me. But now, I am a little skeptical and scared.
I have never been late on a single credit card payment in my life, and now I’m one month behind. I have been told to trust the process, and I hope what I’m doing is not a scam.
I am a single mom and make around 75k a year. During the pandemic, my yearly went down to 40k.
I had someone paying half my rent which they moved out at the beginning of the pandemic. Also, I had daycare I paid for on my own at $1,300 a month.
I used my credit card for many things and racked up about $30k in debt. I had some before the pandemic that was manageable, but now it’s a little much, and I thought I would seek help.
I was managing but struggled. Finally, they said the consolidation wouldn’t be worth it and that I should do the settlement.
Did I make the right decision, or should I cancel out now and do something different before it’s too late?
Kimberly
Answer:
Dear Kimberly,
I appreciate your confidence in me regarding ClearOne Advantage, but my knowledge is more about debt relief in general and not any specific company program.
The most important question is not about which company you may hire but about if a debt settlement approach is logical given your situation.
I don’t think people are surprised when they walk into a car dealership, and someone tries to sell them a car. So people should not be shocked when they contact any debt relief company and try to sell their debt relief product.
Let’s look at the different types of debt relief products that are most commonly available.
As you can see from the solution comparison above, not every solution has the same pros or cons.
Although I wrote this some time ago, I think the fundamental factors are still relevant. See The Truth About The Success Rates, Failure Rates and Completion Rates of Credit Counseling, Debt Settlement, Bankruptcy, and Debt Consolidation Loans.
The primary issue that is the most important is not what is going on today but what you want to happen in the future.
Any solution that requires you to repay the debt over time can create a significant deficit in retirement savings. That can leave you broke when you are older. To see some real numbers, read What Repaying Your Debt Will Cost You in Retirement – Calculator.
Honestly, I think people should always embark on a path to get out of debt that is based, in fact, on their goals and includes a thoughtful look at all the options. Only that way can they make an informed decision that is best for them.
I would be shocked if CareOne Advantage discouraged you from getting a second opinion about your financial situation. But, if they did, I would be surprised.
One person you can talk to is my debt coach friend Damon Day. Just have an independent conversation with him about your situation. Think of it as a second opinion, like if you had some medical condition.
You will come away feeling confident you did the right thing or that maybe any debt settlement solution is not suitable for your specific situation. Either way, knowledge will give you confidence, and that will lead to comfort that you’ve done what is in your best interest.
Getting a second opinion is not going behind the back of CareOne Advantage. You are looking out for your best interests. You should not hesitate to tell them you are seeking a second opinion.
You are not alone. I’m here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don’t give up.
