I just finished an online application for CareOne, a debt management program.

Now that Steve is working for the union and has gotten a couple of raises, we are doing better. However, the credit cards were already big and that debt has begun to drown us. A few weeks ago, we had a week without a paycheck, and while we knew that was coming (it’s kinda confusing how they do vacation pay) and had prepared by paying some of the bills earlier in the month than we normally would have, it totally kicked our butts. I can’t figure it out, either, since we had paid those bills already, but we ended up having to use the credit card several times for gas and once for groceries. Because of that, it seems our bill has jumped incredibly. I guess interest is the culprit.

So we figured that was the last straw – we had to do something before we completely drown. I looked at four different companies before finally going with CareOne. They all seem the same to me, but something tells me to try them, so we are. I am currently waiting for my “welcome packet” which will include things for us to sign and fax back. Guess I have to find a place to fax from. My mom’s… or preferrably somewhere closer… :\

Part of the application process asked for montly bills as well as income. The online calculators go to work for you and were very quick to inform me that by default, we should be $200-250 in debt each month. Like I didn’t know that. How do you think the credit cards got so high in the first place? :P But we will be fine, really, if we could just get rid of the credit card payments. Plus, we are expecting another raise this summer sometime. Thankfully.

So I look around us, for ways to stop spending so much money. Cell phone? Under contract. Besides, it’s a necessity and if cancelled really wouldn’t save that much money. Gas, electric, water… can’t cut any of those. Phone bill? It’s already lower than most people’s. Hosting, domains? Doesn’t count – business expense, not included in this program, plus, it’s already all paid for. Blah, blah, blah.

Well. The biggest downside I see to this so far is that they require you to do automatic withdrawl to pay them, and they turn around and pay the creditors. We are not used to automatic withdrawl. I do pay 90% of bills online, but none of the are automatic. I am used to being in control. But we’ll make it work.

According to these guys, we will save oer $17,000 in interest and will be all paid off in 5 years, as opposed to 21 if you pay minimum credit card payments and don’t add to the cards.

Oh, there is one thing I’m afraid of. While on this program you cannot aquire any more debt (duh, of course) but what scares me is if we have a bad week or something and have to have gas for Steve to go to work or something and have no money. I guess we will take it day by day and hope that doesn’t happen, as we are now forced to always live within our means, no backups allowed.

So here goes nothing.