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Financial Hardship: When to Hire a Personal Finance Coach

financial coachAfter completing high school and even four years of college in some situations, it’s amazing how few people go out into the world prepared to properly handle their financial matters. Unless someone finds him or herself on a business track, there is simply no training or education provided on issues such as personal budgeting and dealing with debt. Unfortunately, it doesn’t take a finance major to see where America’s personal debt numbers are going to lead so many consumers.

The Numbers Spell Trouble

In May of 2015, the Federal Reserve issued a follow up report updating data previously released in mid-2014. According to its numbers, the Federal Reserve reported Americans were carrying $11.85 trillion in debt. While $9.85 trillion of that debt is secured, there is still another $2.0 trillion in unsecured debt that stands to be problematic. The biggest issue seems to be the average American household is carrying over $17,000 in credit card debt, which is simply unsustainable for the average American family that has to use 14% of its disposable income paying down credit card debt. The potential for financial hardship is evident by the fact 2.2 million people filed for bankruptcy for the 24-month period ended October 31, 2014 (US Bankruptcy Court).

The Effects of Poor Financial Management

Anyone who has ever encountered financial difficulties has most certainly experienced the way it can negatively impact one’s life. Anytime you live with overriding stress on a day to day basis, it tends to permeate all areas of your life. The mind isn’t able to stop thinking about the end result of debt problems. Will it result in bankruptcy or losing assets? Will you have to move? What about the kids education? These are just some of the questions that will start weighing on your mind. Both your attention span and temper might get shorter, creating problems at work and in your personal relationships. When debt problems become unmanageable, it takes no prisoners.

Preventing Financial Hardship

By the time payments are being missed and creditors are starting to call, you are going to be forced to consider debt relief options such as debt consolidation, debt settlement and bankruptcy as a worst case scenario. It would be a far better idea to put safeguards in place before debt issues reach crisis mode. That demands you learn the kind of debt and financial management skills that will keep you from making poor financial decisions. If you have ever been part of an organized sport, you have been exposed to coaching. A personal finance coach might be the best way to learn the skills necessary to prevent financial hardships.

Benefits of Hiring a Personal Finance Coach

Regardless of your debt situation, it’s never too late to learn how to better manage your finances. That said, it’s far better to hire a personal finance coach before problems become evident. The benefits of hiring a personal finance coach include:

1. Developing Financial Goals - One of the biggest failings of young people is not taking the time to establish short-term and long-term financial goals early in life. Financial goals are necessary to provide you a target for reaching retirement financially solvent.

2. Learning Accounting ConceptsMost people don’t understand basic accounting concepts such as assets, liabilities, cash basis, debt ratios and budgeting. With a crash course in some of these basic accounting concepts, you will get a sense of how important it is to prepare a budget and control your spending.

3. Learning How to Invest and Save - Learning to save money for key purchases (home, car) and retirement is the key to avoiding financial hardship. Personal finance coaches can teach you how to save money, invest it wisely and keep yourself financially stable no matter what occurs during your life.

If you would like more information related to the value of hiring a personal finance coach, you should schedule an appointment with one of our professional debt counselors here at Rescue One Financial. We can hopefully advise you on your financial matters and help you locate the finance training you want or need.

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7 unbelievable things you never knew about student debt

Student loan debt With increased college enrollment and escalating educational costs, the numbers related to student loan debt have risen to record levels. Most experts would say this has happened out of necessity because of the competitive nature of a job market that has been shrinking in recent years. More kids are choosing college enrollment over entering the job market without marketable skills. According to the College Board, 63% of all high school seniors enrolled in college after graduating in 2011. Unfortunately, the unintended consequences of more college enrollment has been more student loan debt.

7 Unbelievable Things You Never Knew About Student Debt

Due to the large increase in student loans over the last 10 years, some rather interesting facts about student loan debt have caught the attention of people everywhere. Before you take on student debt, these are things you should know in order to avoid getting yourself in trouble. No one should ever knock a young adult pursuing additional education. However, all young adults should carefully consider the facts about student loans before they put themselves in a financially stressful situation without an out or plan for recovery.

1. Debt Levels – Based on information provided by the Federal Reserve and College Board in May 2015, Americans were carrying student loan debt to the tune of $1.1 trillion. Based on the number of people carrying this debt, that number works out to be more than $30,000 per person. Amazingly, 14% of those people were carrying in excess of $54,000 in student loan debt. In some states, that’s 40$ of a home loan.

2. Default Rates – To date, there are $85,000,000,000 worth of student loans that are in arrears. Furthermore, 14% of the people with student loan debt were behind on payments with at least one loan. With these kinds of numbers, it should be clear that the potential for an epidemic of debt problems is extremely high at this point in time. All this might explain why Federal and State legislatures are looking for ways to help troubled borrowers.

3. Possibility of Bankruptcy – There are two types of debt that are not eligible for bankruptcy protection. Those are taxes and student loans. Once you have a student loan, you will have to deal with it one way or another from start to finish.

4. Loan Consolidation Comparison Between Private and Federal Lenders – If you decide a student consolidation loan might help you deal with your debt, you need to be aware that Federal Debt Consolidation programs will exclude privately issued loans while some private debt consolidation loans might consider the inclusion of Federal loans.

5. Payment Caps – Regardless of the terms stated in your loan documentation, there are programs that will reduce your monthly payments to a max of 10%-15% of your monthly disposable income no matter how large your principle balance might be.

6. Aggressive Collection Policy – If you should fall behind on your monthly payments, there are very few restrictions as to the tactics lenders can deploy to go after monies owed them. They can resort to impounds on government income and even threaten some types of professional licenses.

7. Late Charges – On some types of student loan debt, lenders are allowed to charge as much as 25% in late fees on past due payment amounts. These charges can escalate your debt to the point of no return in a hurry.

If you would like more information related to student loans, you should contact one of our professional debt counselors here at Rescue One Financial for a consultation. The information they can provide might be timely enough to keep you from incurring unintended consequences.

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3 Most Common Ways American Consumers Waste Money

credit card and dining Receipt“Waste not, want not.” That’s pretty good advice. Unfortunately, it’s a notion that is quite difficult to fulfill. No matter how you view it, America tends to be a nation of excess. If you can’t afford it, credit cards can fill the gap. If you’re going to buy something, buy the best. If someone else has one, you need/want one as well. These seem to be the standing rules for many consumers.

The Problem With Wasting Money

Using a short-sided view, people don’t see the problem with spending money. There always seems to be more cash coming in the future, right? The problem is many consumers have bad saving habits and equally bad spending habits. The combination of these two factors leaves people exposed to potential financial problems in the future. No one is suggesting you not spoil yourself every now and again. However, you should confine the spoiling to those times when you might actually have a little extra money to spend. Spending without having accountability for your future is wasteful

3 Most Common Ways Consumers Waste Money

It’s possible the reason so many people waste money is because they are not aware that’s what they are doing. What might seem like normal spending, ends up being wasteful when they run out of money for the things they really need. By helping people identify the ways they waste money, there is a chance awareness will stop them in their tracks.

  1. Servicing Debt - There is no denying interest expense is top way Americans waste money. According to a Federal Reserve survey released in late 2014, Americans were carrying total credit card debt of $882 billion. The average American household was using 13.9% of their disposable income to service that debt while 14% of those surveyed had credit card debt exceeding 40% of their annual income. When factoring in the historically high interest rates changed on most credit cards, it makes wasting money inevitable. If you buy the latest and greatest gadget with a credit card that carries an APR of 12% or higher (about 75% of the credit cards), you are going to end up spending significantly more for the item than its original cost. That’s a waste of hard earned cash. Low to mid-income families are particularly vulnerable to wasting money while trying to manage credit card debt.
  2. Transportation - America is a transient nation. People seldom work close to where they live and they need reliable transportation. The problem is Americans have been led to believe new cars are more reliable. They might be, but they are also very expensive. There was a time when cars closing in on 100,000 miles were susceptible to breaking down and/or needing new engines. With regular maintenance intervals, that’s simply not true anymore. Cars, especially foreign cars, are made to last for years. If you have a decent car, spend money maintaining it and avoid the temptation to buy a new one. If you need a replacement, you should consider buying a used, reliable name brand with under 100,000 miles. By doing do, you can avoid wasting you money buying a major asset that loses value on a daily basis.
  3. Dining Out - Over the last twenty years, Americans have made a habit of dining out. They will usually site being too busy as the reason they do so. No matter why they do it, it’s expensive and an abject waste of money. A meal that costs $50 (including tip) for a family of four in a restaurant can usually be prepared at home for about $15. Isn’t 30 minutes of your time worth $35.00?

For more information about ways you might be wasting money, you can schedule a consultation with one of our professional debt counselors here at Rescue One Financial. By taking the time to understand your wasteful spending, you will get the opportunity to replace your bad spending habits with good spending habits while improving your financial situation in the process.

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How to Build Wealth and Avoid Debt

Build Wealth and Avoid Debt From the moment your parents handed you your first allowance payment, you began the process of building wealth. Conversely, the first time you made a charge on your credit card or signed a personal loan document, you violated the most important rule for building wealth, avoid debt. While it is possible to build wealth while dealing with debt issues, it is not recommended for someone with a weak stomach or a sincere desire to have financial security in the future.

The Effects of Debt on Wealth
Obviously, debt detracts from your wealth in most circumstances. However, there are some circumstances where debt is a necessary part of building wealth. For instance, you incur debt in the form of a mortgage when you purchase a home. In most instances, the mortgage is an investment that allows you to hold the property while it appreciates, increasing your wealth. Some people will point to real estate bubbles as a reason why this doesn’t always work. However, real estates trends dating back hundreds of years show real estate always appreciates over time and selling in a losing position is often a choice, a bad one at that. Bad forms (credit cards, personal loans) of debt are nothing more than detraction from your wealth. Interestingly enough, the purchase of an automobile with debt starts as with a negative impact on wealth as the car depreciates lower than the debt balance. After making payments for a certain amount of time, the trend reverses and the car becomes a wealth-building asset.

How to Build Wealth and Avoid Debt
Without getting too complicated, the average Joe needs to avoid debt in order to build wealth. There are certain basic things that can be done to help achieve both these goals at the same time.

1. Don’t Use Credit Cards – Credit cards are like kryptonite to wealth. If you are using credit cards for normal expenditures, you are agreeing to pay more than the goods/services are worth if you don’t pay off the debt before interest is charged. If you use credit cards to purchase assets, you continually diminish the value of those assets until the debt is paid. In both cases, you are decreasing your wealth.

2. Planning – People who don’t plan and develop budgets are destined to become careless impulse buyers. Disciplined spending is the best way to avoid using consumer debt, which in turns helps to mitigate the use of wealth to make purchases.

3. Set Wealth Building As a Primary Goal – As much as people would like to accumulate wealth, far too few people actually make it a goal. When you set wealth-building as a primary goal above all else, the financial decisions you make in the future will trend towards being fiscally responsible.

4. Saving – Saving money always results in wealth building. It also serves as a security blanket against emergencies. While you may have to sacrifice some of your wealth to pay the costs related to an emergency, you are also able to avoid the future impact of debt on wealth by using the cash.

5. Increase Your Income – You should always be on the lookout for opportunities to increase your monthly income. More income is the fastest way to increase wealth and the most effective avoid the need to incur debt. A part-time job or home business are great ways to increase income.

If you are interested in more information about building wealth and avoiding debt, you should contact us here at Rescue One Financial. Our professional debt counselors are prepared to evaluate your financial situation and offer guidance on how to achieve both of the goals at the same time.

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Debt Consolidation for People With Bad Credit

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For people with bad credit, the fight against debt issues must seem like a never-ending battle. No matter what they do, they get to feeling like they will never get a break. This can be particularly tough on people who are making a real effort to fulfill their financial obligations. The good news is there may still be hope found with debt consolidation.

Debt Consolidation for People With Bad Credit

Debt Consolidation Loans
A debt consolidation loan is one of the better debt solutions offered in the financial marketplace. It is really designed for individuals who are besieged by mounds of consumer debt, usually credit card debt and personal loans. They may have the means to pay the debt off within a reasonable amount of time, but find it difficult trying to deal with so many bills and creditors at the same time. A debt consolidation loan affords the borrower an opportunity to roll several if not all of their bills into one loan with one monthly loan payment. In the process, they might save money by securing a lower aggregate interest rate in place of their high-rate credit cards. It also gives them a chance to start repairing their credit score.

Debt Consolidation for People With Bad Credit
The question remains; Is debt consolidation a viable option for someone with bad credit? The short answer is yes, it’s a possible solution. However, it’s not going to be an easy process to find a lender and may ultimately lead to rejection. If you have bad credit, but are determined to pay it off, here are some things for you to consider.

Finding the Right Lender – It should come as no surprise that conventional lenders such as banks and credit unions are probably outside the realm of possibility. These types of institutions are risk-adverse and have strict lending standards that eliminate people with bad credit. However, there are many debt consolidation companies with programs that cater to people who are in financial trouble. It’s not that they are more liberal with lending practices, it has more to do with having a better understanding of the situation and more flexibility when evaluating potential borrowers.

Risk-based Pricing – If you are fortunate enough to find a lender willing to take the risk of lending to you in your current situation, you need to be prepared for “risk-based pricing.” This is a term used by lenders to indicate that the inherent risk is going to be assessed and the interest rate will be used to reflect the level of risk being taken. The more risk the debt consolidation company is willing to take, the higher the interest rate is going to be. This assessment is also going to determine the amount of your existing debt they are willing to absorb.

Review Your Credit Score – Before you begin your search for a lender, you should take some time to review your credit report. You might find some errors that will improve the overall score if corrected. It’s worth the effort if it translates to a lower interest rate and/or a higher probability of a yes.

If you are stuck with bad credit, but want to explore debt consolidation as an option, you should schedule an appoint with one of our professional debt counselors here at Rescue One Financial. We will be happy to take some time to review your situation in order to help you find the right solution for your debt problems.

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Credit Card Debt Settlement – Fact or Fiction?

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rescue one financial credit card debt settlementIf you are one of the unfortunate individuals who have been struggling to meet your consumer debt obligations, there is a good chance you have been seeking solutions to your financial problems. If so, you have undoubtedly discovered the worse the debt situation gets, the more difficult it is to find relief.

Solutions for Desperate Situations
According to the US Bankruptcy Court system, 2.2 million individuals filed for bankruptcy over the two-year period ended October 31, 2014. Bankruptcy is the ultimate solution for severe consumer debt issues. If you have an average American household, you might be carrying $15,611 in credit card debt (Federal Reserve Survey, 2014), mortgage debt, a car loan and student loans. Depending on your income, you might also be getting close to seeking desperate measures to solve your problems. Before you start thinking about bankruptcy, you might want to consider the consequences, including 7-10 years of bad credit. As an alternative, you might have heard the term “debt settlement” and be wondering if it’s a viable option for relieving severe consumer debt issues.

Credit Card Debt Settlement – Fact or Fiction?
If you are curious about debt settlement, here is some information you might find interesting. Credit card debt settlement is a real and viable solution for people who find themselves stuck behind the eight-ball with unmanageable debt. It’s a fact, not fiction. However, the debt settlement process does come with consequences to go along with the benefits derived.

What is Debt Settlement
When a credit card borrower is no longer able to maintain regular payments, it is possible to approach your credit card companies about the possibility of renegotiating the debt balance as well as some of the key terms. You can initiate this process on your own, but it’s a far better option to work through a licensed debt management company that has experience dealing with such sensitive matters. If the negotiations are successful, there’s a strong possibility your debt will be deeply discounted, your effective interest rates lowered and lower monthly payments established. All of these adjustments would be based on your promise to resume regular payments on a timely basis. As mentioned, there are consequences. The biggest one would be the damage done to your credit score. It won’t be as severe as the damage caused by bankruptcy, but you best be prepared for 2-3 years of bad credit.

What About the Lenders?
It goes without saying lenders are never pleased about the debt settlement process. However, most lenders are run by astute business people who are able to understand the realities of the situation. If they refuse to negotiate, it might lead you to bankruptcy. Through the bankruptcy process, they might stand to get nothing in the settlement unless they are willing to incur excessive legal expenses for a fight. From a business standpoint, it makes sense to settle for what they can reasonably get through the debt settlement process.

Complicated debt settlement negotiations are best handled by professional debt counselors with the requisite experience. If you would like to discuss these or other matters with our counselors here at Rescue One Financial, they would be glad guide you through the process, which will help give you a new start and a chance to rebuild your credit score.

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3 Qualifying Factors For A Debt Consolidation Loan

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Debt Consolidation Loan QualificationAs debt and bills accumulate, there is a real possibility you will someday be confronted with debt issues that could put a material strain on your life and financial well-being. In America, people have gotten used to carrying high levels of consumer debt, more than they can justify based on their income. According to a Dec 2014 Federal Reserve study, the average American household has credit card debt of roughly $16,000 spread over an average of almost four credit cards. That represents a lot of debt and extra bills to be paid on a monthly basis.

Addressing Debt Issues
As the pressure builds, it makes sense for you to start looking for solutions. Before you start dealing with your current debt issues, you might want to consider lifestyle changes in order to prevent incurring more debt in the future. A good debt management strategy could be helpful with that endeavor. Once you feel your fiscal behavior has been adequately modified, you can start looking at your options for paying off existing debt. If you qualify, a debt consolidation loan is a great way to eliminate most of your bills while structuring your debt in a way that enables you to pay it off as quickly as possible.

3 Qualifying Factors For A Debt Consolidation Loan
Before considering what you need to do to qualify for a debt consolidation loan, it’s important for you to determine whether or not you can realistically handle your current debt levels. If not, there are more aggressive solutions available for eliminating debt. If you are serious about handling your responsibilities and saving your credit score, here are three important factors that will be used to determine whether or not you can qualify for this type of loan.

Steady Income – Whether you approach a conventional lender (bank, credit union) or a debt consolidation company, they are going to require proof of income. If you don’t have a steady stream of monthly income, you are going to find it very difficult if not impossible to find a company willing to take that kind of risk. Many of these lenders will also request some type of monthly budget showing income versus expenses.

Collateral – While collateral is not absolutely necessary, it serves to make qualifying for the loan an easier task. Qualifying collateral usually includes free and clear assets like a car or boat, household furnishings or personal assets like jewelry and stocks. If you offer up good collateral, you can keep your effective interest rate to a minimum. Without it, your interest rate will reflect the additional risk being taken by the lender.

Credit Score – When trying to qualify for a debt consolidation loan, most lenders are aware your credit score is probably not perfect. It doesn’t mean they are going to ignore it. Most lenders want to see a credit score in the “good” range or better. A few lenders might take the risk with an “average” credit score, but the effective interest rate is going to reflect the risk. With “bad” credit, you’re pretty much out of luck.

If you have questions or concerns about qualifying for a debt consolidation loan, our professional debt counselors here at Rescue One Financial can act as reliable resource for your questions. By working with our company, there is good chance a viable solution can be crafted that saves your credit score and enables you to reestablish financial security.

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How To Deal With Debt Relief Discouragement

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How To Deal With Debt Relief DiscouragementWith your back against a wall of debt, it must feel like the weight of the world is on your shoulders. It doesn’t matter how you got yourself into this position, it only matters that you find a way out. The truth is that it’s far too common for Americans to find themselves facing issues related to debt, particularly credit card debt.

Those facts are supported by the data recently provided by the Federal Reserve. By the end of 2014, Americans had total personal debt of $11.7 trillion. Of that number, there was credit card debt of $882.0 billion, approximately $16K per household. For 14.7% of those families, that number represented at least 40% of their annual income. Numbers like these are unsustainable, leaving too many people praying for a way out.

The Way Out
Depending on the severity of your own situation, there are ways to get the debt relief you need. If you need actual debt relief, debt management would only be useful in helping you learn how to better handle your finances. Debt consolidation might help if you have the means to make debt payments, but have too many bills with too much cash going out the door on a monthly basis. If your problems are reaching unmanageable status, you need to consider debt settlement as the next best solution. Of course, there are no guarantees your creditors will cooperate, so you need to be prepared to deal with the process.

How To Deal With Debt Relief Discouragement
By the time you start looking at debt settlement or even bankruptcy as an option, you might be feeling a bit discouraged. In fact, the debt settlement process stands to perpetuate those feelings of disappointment, leaving you more discouraged. In order to deal with escalating debt problems, you need to stay focused and motivated. Here are some tips on how to keep from feeling discouraged about the debt relief process.

Take Responsibility – If you debt problems were brought on by personal emergencies or tragedies, it’s not you fault and there’s no sense in languishing. If it was due to irresponsible spending behavior, take responsibility for you actions, make improvements and move forward.

Don’t Take Rejection Personally – This is hard to do, but lenders that say no to debt settlement are making business decisions, not proclaiming you a bad person.

There’s Help Available – Debt management companies and credit counselors are available to help you right your financial ship. Don’t be too proud to seek help.

Prepare for the Worse – In most cases, bankruptcy is the worse case scenario. If that’s where you end up, your credit will be damaged, but your debt slate will be clean, allowing you to move forward and start rebuilding.

Understand Consequences Are Not Permanent – None of the consequences of having debt issues are permanent. As long as you use debt management techniques to avoid future problems, everything will be fine at some point in the future.

Here at Rescue One Financial, our professional debt counselors specialize in helping people face and deal with personal debt issues. If you want or need assistance, please schedule an appointment as soon as possible. Working together, there’s a good chance we can find the right solution and put an end to those feelings of discouragement.

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Solve Money Woes with A Debt Consolidation Loan

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Rescue One Financial debt consolidationWhen you have a problem, it’s only a problem until you find the right solution and fix it. Excessive consumer and credit card debt is a problem for many people. It causes people to live with unbearable stress, which makes for an unsatisfying life. How many times do people say; “If only I could find a solution to my money problems?” Money woes are temporary as long as you understand there are ways to fix the problem.

The Real Story Behind Debt in America
If you are wondering why so many Americans have money woes, all you have to do is read about the facts as presented by the Federal Reserve in late 2014. Did you know that the average family was carrying $15,611 in credit card debt? For 14.7% of those families, that number represented at least 40% of their annual income. Furthermore, it seems to be debt that just doesn’t go away as 56% of those questioned stated that they had been carrying credit card balances for at least 12 months prior to that date. These numbers show you are not alone if you have money woes.

The Best Option for Problem Debt
With the average family using an average of 3.75 credit cards, the fact is they spend too much time worrying about debt. As the credit card balances rise and the ability to pay on time diminishes, the stress has nowhere to go but up. If you are standing in your boat and feel like you are taking on water, there is a viable solution that has helped many Americans set aside their financial worries. It is called Debt Consolidation.

Solving Money Woes with a Debt Consolidation Loan
First, you might want to consider contacting a debt management company that has experience with helping borrowers secure debt consolidation loans. There are four components related to credit cards bills that cause a majority of the problems and stress. They are:

  • High credit card balances
  • Too many monthly payments
  • High interest rates
  • High monthly payment requirements

In order to change the first component, you would have to consider more drastic options such as debt settlement or bankruptcy. Both are viable solutions, but each of them comes with uncomfortable consequences. Before taking such drastic measures, you should try a debt consolidation loan. If you are able to secure one, it offers the following benefits, which addresses the other three components.

  • Your number of monthly payments will be reduced to a single lender.
  • Your effective aggregate interest rate will most likely be lower than that being charged on your credit cards.
  • Lower interest rates should translate into a lower monthly payment, which puts more cash in your pocket for savings.

Here at Rescue One Financial, our professional debt counselors have a good deal of experience with helping clients secure debt consolidation loans. If you would like the opportunity to investigate whether or not it is a viable solution for your situation, you should schedule a consultation at your earliest convenience. The only thing you have to lose by doing so would be you stress and money worries.

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3 Common Credit Score Errors

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common credit score errorsFor better or worse, the most important number in your life aside from your social security number is your credit score. From the moment you make your first credit transaction, your credit score follows you wherever you go for the rest of your life. It gives major credit reporting agencies (Equifax, Experian and TransUnion) a lot of influence over you finances and ultimately, your life.

The Importance of Your Credit Score and Overall Rating
Your credit score is going to dictate whether or not creditors are willing to offer you credit. Without a good credit score, it’s virtually impossible to buy a home. You might be able to buy a car or qualify for a credit card, but a bad credit score might result in high interest rates and strict payment guidelines. Also, employers are now using credit information to determine whether or not applicants are worthy of the trust that would be bestowed on them. There is no escaping the reach of your credit rating.

The Role of Credit Reporting Agencies
You must keep in mind that credit reporting agencies have no vested interest in your situation one way or another. They simply provide a service that requires them to report financial facts about you as they know them. If there are problems or errors on your credit report, the source of the issues could result from faulty information provided by creditors or through input errors committed by the agencies. Either way, it’s ultimately your responsibility to make sure that all information on your credit report is accurate and factual.

3 Common Credit Score Errors
Credit reporting agencies are run by people and people make errors. Because of this inconvenient fact, it is important for you to review your credit report at least once a year. If errors appear, it’s easier to catch and correct them soon after they occur. The three most common errors to look for are:

1. Identity Errors – These types of errors range from nuisance to serious. The most common identity errors include name misspellings, wrong addresses and phone numbers, an incorrect birth date and an erroneous social security number. In a worst case scenario, some of these errors might cause someone else’s information to be reported as yours.

2. Account Information Errors – Most of these types of errors cause credit rating problems. Common account errors include wrong account numbers, incorrect credit limits, incorrect account status and erroneous account balances.

3. Fraud – This one is serious and often involves criminal activity on the part of someone who has stolen your identity. These criminals will use your personal information to secure credit, run up balances and disappear, leaving you and your creditor holding the bag. They require a lot of work to fix and often create adverse credit ratings that impair your ability to borrow on a temporary basis.

If you would like more information about protecting your credit score, you can contact one of our professional debt counselors here at Rescue One Financial. We can provide you with a list of common errors to watch for and assist you in getting them corrected. You don’t want to let credit reporting errors define your life any longer than necessary.