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Will Debt Consolidation Help Me?

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rescue one financial debt consolidation helpAs many people in America continue to slip slowly into debt, ordinary consumers have to be wary of experiencing a similar fate. According to Federal Reserve findings (July 2014), American households have an average of 3.75 credit cards with a combined average of $19,000 of approved credit limit. With an average salary of $52,000 (US Census Bureau) per household, many consumers have the potential of running their consumer debt to over 36% of annual income. After factoring in mortgages, auto loans and student loans, the potential for financial disaster seems far too high.

What Should You Do If Debt Becomes a Problem?
The best thing you can do prevent financial hardship is to stay aware of your financial situation. If debt starts to accumulate to uncomfortable levels, there are several ways to head off impending disaster. One such way is by consolidating your debt. Debt consolidation loans are available for qualified borrowers who need the opportunity to reorganize their debt in order to properly facilitate honoring of said debt.

Will Debt Consolidation Help Me?
In order to determine the feasibility of a debt consolidation loan, there are several things you will need to consider. These types of loans are not particularly easy to get and they are not always appropriate for every situation where debt problems exist. With that in mind, there are several situations that might make this a good solution.

1. Too Many Creditors – If you are paying too many bills on a monthly basis, you are probably feeling overwhelmed when it comes time to pull out the checkbook. This really becomes a factor if late payments start to pile up, which prompts creditors to start calling. A debt consolidation loan is a great way to roll all these payments into a single payment with a single lender.

2. Paying too Much in Interest – If much of your debt, especially credit card debt, carries high interest rates, a debt consolidation loan may afford you the opportunity to significantly lower your aggregate effective interest rate. By doing so, you can save yourself a lot of money and slow down the accumulation of debt related to interest charges. It might also in the lowering of your overall payment, making your monthly cash outflow a little easier to handle.

3. The Risk of Credit Score Issues – As you start to experience late payments, you run the risk of hurting your credit score, which diminishes your future access to credit in case of emergencies. A debt consolidation loan can be used to payoff problem accounts before they adversely affect your credit score.

If you can qualify for the loan and resolve one or more of these situations, then yes, a debt consolidation loan can help you. If you would like more information or assistance on securing this type of loan, you can contact one of our professional debt counselors here at Rescue One Financial. They are ready to serve you and offer the best possible advice when you are looking to find financial stability.

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Reduce Credit Card Debt To Lighten Financial Burden

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reduce financial burdenIf you find yourself overwhelmed by credit card debt, you can consider yourself the rule, not the exception. The Federal Reserve recently reported that Americans were holding as much as $793 billion in credit card debt. The average American family was also servicing $15,799 in credit card balances and was using up to 14% of their disposable income to do so. Faced with these kinds of numbers, it would be safe to assume that many borrowers are left feeling the effects of financial burden.

Lightening The Burden
If you’re feeling the pinches of this burden, it might be a good time to address the problem and looks for ways to reduce your credit card debt. As you begin the process, you must keep in mind that you didn’t get into debt overnight. It probably occurred over several years and you can anticipate that it’s going to take some time and effort to rectify the situation. However, it’s worth the investment because it will help you eliminate the associated stress and give you a chance to handle your future responsibilities in a more efficient manner.

Reducing Credit Card Debt
There are several things that you can do to start reducing you credit card debt now. As the saying goes; “A journey of a thousand miles begins with one step.”

1. Stop Using Credit Cards – If you can’t commit to cutting up your credit cards and using cash as your only source of purchasing power, your efforts may prove feudal. The cycle of accumulating debt has to stop before you can effectively reduce your balances.

2. Making More Than Minimum Payments – If you have been experiencing recent problems servicing your credit card debt, you may be making nothing more than the minimum required payments. Calculations show that this isn’t going to help. You must make an effort to pay as much as possible in order to relieve your burden.

3. Debt Management – The best way to control your debt and start reducing credit card balances is by instituting solid debt management procedures. This should entail making and abiding by a strict cash budget and developing an effective debt repayment program. If you are unsure how to proceed, you might consider consulting with a debt management company.

4. Debt Consolidation – Once the storm has settled, you might want to secure a debt consolidation loan. If you can roll all your problem credit card debt into one loan with one lender, you can greatly reduce the burden of facing all those bills on a monthly basis. A debt consolidation loan will usually help lower your monthly cash outflow and reduce your aggregate interest rate, which figures to save you a lot of money in interest costs.

At Rescue One Financial, one of our professional debt counselors is prepared to give you information or assistance with reducing you credit card debt and the associated financial burden. Together, we can come up with the best possible solution that will be designed to reduce your stress and offer you financial security.

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How Do You Know If You Should Seek Professional Debt Help

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Seek Professional Debt HelpDealing with debt issues is a complicated task. When a person finds themselves getting into debt over their head, the mental and emotional strain tends to build up to the point where clear thinking and good decision-making become a real chore. With the average American family carrying $15,799 in credit card debt as well as car loans, mortgages and student loans, it’s amazing how many individuals are able to survive.

How Debt Unexpectedly Builds
In general, most people who end up with financial problems, because of unmanageable consumer debt. It starts out innocently enough with a small credit card or two and some selective buying. Overtime, circumstances change the financial landscape. With a generous credit limit, a little impulse buying and a couple of small emergencies, a credit card balance can inflate in a hurry. If the borrower starts making only minimum payments and using the card for normal expenditures, debt has nowhere to go but up. Sooner or later, a debt crisis appears on the horizon.

What is the Best Way to Deal With Debt Issues?
According the Federal Reserve (2014 report), the average American household uses 13.9% of their disposable income on consumer debt servicing. With the presence of other debt, that number can become unsustainable over time. Once you find yourself in over your head, the options for fixing the problem become limited. Depending on one’s circumstances, the options include changing your spending habits and getting a second job, debt consolidation, debt settlement or bankruptcy. While it’s possible to handle these matters on your own, it might be a good idea to consult with a professional debt counselor who has more experience in dealing with serious financial matters.

How Do You Know If You Should Seek Professional Debt Help?
Before you consider bankruptcy and put yourself in “credit prison” for 7-10 years, you should consider the other less intrusive methods of solving your debt issues. Since debt consolidation and debt settlement are going to require properly assessing your situation and working with lenders, it’s highly recommended that you seek professional debt help. You’ll want to enlist this kind of help if:

  • The debt situation is taking a significant toll on your ability to make decisions.
  • You are constantly being bombarded with calls from creditors.
  • You feel intimidated and unsure of how to deal with creditors.
  • You have serious time constraints related to the time you can invest in pursuing relief.
  • You are in direct danger of losing your job, home, apartment and/or significant assets.

If two or more of these factors describe your current situation, you should consider yourself a prime candidate for the help of professional who has been trained to effectively deal with these types of sensitive matters.

At Rescue One Financial, our professional debt counselors have years of experience in helping people who are wading in uncharted debt waters. If you would like more information or assistance on dealing with your own personal debt situation, you should contact us as soon as possible. We stand at the ready to help you sort out your debt issues and remove the unwanted stress that stands in the way of serenity.

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Are Debt Consolidation Loans The Answer To Mounting Bills And Debts

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Mounting Bills And DebtsAccording to statistics released by the Federal Reserve as of December 2014, Americans carry aggregate debt to the tune of $11.74 trillion and climbing. That number represents almost $37,000 for every man, woman and child in America. Of that number, as much as $800 billion is related to consumer debt from credit cards.

Danger Ahead
As credit card debt continues to escalate, more individuals are reaching a point of debt crisis. The most telling number is that 14.7% of American households are carrying credit card balances that exceed 40% of their annual income. For many, that number is getting close to the tipping point of financial disaster. Before anyone hits the panic button, there is a way to manage oneself out of debt trouble.

Are Debt Consolidation Loans The Answer To Mounting Bills And Debts?
The short answer to the question posed is yes. For many people, it might be a viable solution. Typically, debtors who might benefit from a debt consolidation loan have many of the following debt characteristics:

  • Multiple credit card bills that take up a great deal of time to manage and pay.
  • Credit card debt that carries high interest rates.
  • The resources necessary to meet “reasonable” debt payments.
  • A credit profile that is still good enough to qualify for a debt consolidation loan.

How To Go About Securing a Debt Consolidation Loan
If the characteristics listed above seem to be describing your very own debt situation, the time might be right to begin the process of securing a debt consolidation loan. While it might be something you can initiate on your own, you should be aware there are professional debt management services available that can help you with the process. They may be better prepared to locate lenders that lend to borrowers in your current situation. The most important thing is securing the loan before the debt becomes unmanageable and begins to adversely affect your credit rating and life.

The Benefits of a Debt Consolidation Loan
If properly negotiated and used, a debt consolidation loan can offer you relief from the stress related to dealing with too many bills and too much debt. These types of loans can help you in four different ways.

  1. It can help you secure an aggregate interest rate that reduces your interest expenses and slows down the accumulation of additional debt.
  2. It reduces the number of bills you have to manage from many to a single loan payment. In doing so, you will have fewer creditors to deal with and fewer checks to cut at the end of each month.
  3. It often leads to a lower aggregate monthly payment. If this is the case, you might choose to make payments in excess of the required amount as a means to pay your debt off sooner.
  4. It helps you keep your credit score from becoming a liability.

If you would like more information regarding the viability of a debt consolidation loan given your own circumstances, our professional debt counselors here at Rescue One Financial are ready to help you make the sensible choice. While debt consolidation might not be right for everyone, the possible benefits might be worth your time and effort to pursue.

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Five Benefits Of Debt Consolidation Loans

Benefits Of Debt Consolidation LoansFor the most part, people don’t intend to get themselves into debt trouble. Some people have to borrow due to emergencies while others lose track of their spending or fall on hard items due to lost income or other personal disasters. Regardless of the circumstances, debt issues can create a tremendous amount of stress for well-meaning people.

America’s Credit Card Debt
Statistics provided by the Federal Reserve indicate that as many as 15% of all American households carry at least $10,000 in credit card debt. The average credit card debt per household that owns at least one credit card stands at $15,799 per family. That’s a lot of money. With Median household income in the US standing at $51,939 (US Census Bureau), the average family owes just over 30% of their annual income. It doesn’t take an economist to figure out that those numbers translate to major debt problems across the country.

The Need for Debt Consolidation
American’s own an average of 3.75 credit cards per household. That translates to a lot of debt spread over a lot of cards that all require minimum payments. That’s how debt issues begin to snowball. There comes a time when the minimum payments exceed what many people can afford. Debtors always have the option of filing for bankruptcy or debt settlement, but there are unwanted consequences. The best way to handle excessive debt spread amongst multiple creditors is through a debt consolidation loan.

Benefits of Debt Consolidation Loans
Debt consolidation loans are a necessary tool that helps give debtors an opportunity to completely fulfill their debt obligations in a more manageable way, eliminating stress and distress. The five primary benefits of a debt consolidation loan are:

  1. Time Savings Debt consolidation loans allow you to deal with just one creditor. That means issuing one check, instead of several, to one central payment center with one central contact.
  2. Lower Interest Rates – Generally, debt consolidation loan companies offer interest rates that are significantly lower that those charged by credit card companies. Those lower rates translate to significant savings for borrowers.
  3. Lower Monthly Payment – One payment with a lower interest rate usually means less cash flow required to service debt. The extra money can be saved or used to accelerate the pay-down of debt.
  4. Elimination of Stress – Once debt consolidation loans are in place, creditors will back-off on collection calls and give you the opportunity to make good on your debt without further hassle and stress.
  5. Improved Credit Rating When making payments on your debt consolidation loan, you get credit for resuming payments on all associated debt. When the consolidation loan is paid off, the lender will usually negotiate with your prior creditors to have derogatory remarks removed from your credit profile.

If you are interested in pursuing a debt consolidation loan, you can contact one of our professional debt counselors at Rescue One Financial. They have the expertise to help secure an appropriate debt consolidation loan, which should give you some breathing room and a chance to regain financial security.

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Options for Debt Consolidation With Bad Credit

rescue one financial debt consolidationIf you are considering debt consolidation as an option for dealing with your consumer debt issues, the chances are that your credit rating and debt/income ratio are sitting at less than ideal levels. In fact, you might be considered to have bad credit. If this circumstance sounds familiar, you are probably wondering how you could possibly secure a debt consolidation load with such poor credit.

Finding Debt Consolidation Options With Bad Credit
There is no point in kidding yourself. Trying to secure any type of loan is going to be difficult with bad credit, especially since the recent recession created so much financial instability, causing lenders to tighten requirements. With that said, there are some options you might want to consider. The challenge is to become as creative as possible and investigate every possible alternative.

Options for Debt Consolidation With Bad Credit
Given your current credit status, you are going to have to accept the fact you may have to accept loan terms that are less than ideal on certain types of loans. The following options are listed in order of preference.

  • Home Equity Loan – If you have built-up equity in your home, you may be able to secure an equity loan even with bad credit. The catch is that lenders are going to require you to have significant equity to the tune of 20%-40% of the current appraised value. Given the recent depletion of home values caused by the recession, this might be a difficult number to make.
  • 401K and IRA Loans – If you have a 401K plan with your employer or a personal IRA account, there are provisions that will allow you to take out loans against you account balance. The interest you pay is paid to your account and the amount borrowed in only taxable if unpaid within the terms of the loan agreement.
  • Secured Personal Loan – If you have other assets such as jewelry, a car with equity, a boat, expensive furniture, stocks/bonds or other financial instruments, you may be able to obtain a personal loan from a finance company. You need to be aware that they will most likely require security in excess of the loan amount and the interest rates may be on the high side.
  • Payday Loan In an absolute emergency, you can usually get a payday loan if you have stable employment. Contrary to belief, there are payday loans with terms ranging from 6-12 months. However, these loans carry insane interest rates and the collection process for delinquent loans is very aggressive.

If you would like more information regarding certain types of debt consolidation loans that are available for persons with bad credit, you can contact one of our professional debt counselors at Rescue 1 Financial. They have been trained to assist clients with consumer debt issues and help them secure financial stability.

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How Debt Consolidation Can Help You Be Debt Free

rescue one financial debt consolidationIt doesn’t take much effort to sit down and evaluate your debt status. The higher your consumers debt, the more stress you are probably experiencing. You shouldn’t feel bad because you are not alone. As a 2014 Federal Reserve survey points out, Americans owe $793.1 in credit card debt. That averages out to $15,799 per household. For 14.7% of those households, that number represents 40% of their annual income.

The Elusive Manageability of Consumer Debt
For many individuals, the worse part of carrying such troubling consumer debt is the stress and aggravation that comes with trying to cope and deal with creditors and the worry that comes with trying to find a way out. If you find yourself in this situation, you have most likely wasted hours opening mail, writing checks and dealing with credit collection personnel. Maybe you have even reached the point where you have shut off your cell phone, refuse to open your mail and obsess with finding money to pay off your debt. Either way, there are viable solutions to your problems.

Debt Consolidation
If you want to alleviate debt fast, you always have the option of bankruptcy and debt settlement. However, both of these options come with some rather stiff side-affects, including long-term damage to your credit rating. The most responsible and least damaging option is securing a debt consolidation loan. With this type of loan, you will be able to get relief from creditors while paying off all of your consumer debt in a more manageable way.

How Debt Consolidation Can Help You Be Debt Free
The advantages of choosing a debt consolidation loan are more than enough to bring you peace of mind. They include:

  • Securing a lower interest on all or most of your outstanding debt. The interest rates on debt consolidation loans are usually significantly lower than those charged by credit card companies. By lowering the overall rate, you will experience significant savings and halt the expansion of your debt.
  • Reducing the paperwork and need for communication with aggressive credit collectors. With only one bill to open and pay, the time savings figures to be significant.
  • Elimination of late fees and penalty, which can add up in a hurry.
  • Save your credit rating by the resumption of regular monthly payments and paying off all your debt in a responsible manner.

If you abide by the terms of your debt consolidation loan, you will find yourself reaching the end of the debt rainbow where you are debt free and reaching financial security.

At Rescue One Financial, our professional debt counselors are available to provide you with information about debt consolidation or assist you in securing a debt consolidation loan. You will find it very rewarding and satisfying to relieve your stress while honoring your financial commitments and saving your credit profile.

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Common Mistakes To Avoid In Medical Bill Debt

The healthcare industry has been under fire for years now because of the escalating costs being charged to patients and insurance companies. Insurance companies simply pass the costs along to customers while patients are left heading to bankruptcy courts all over the US, trying to find a way to cope with both medical bills and rising health insurance rates.

Avoid In Medical Bill Debt

The Impact on Patients
According to information released by The American Journal of Medicine in early 2011, 60% of all bankruptcies were caused by unmanageable medical bills. Even more shocking is the fact that as many as 75% of those people had health insurance. With medical expense advocates estimating that 90% of all hospital bills contain “gross overcharges”, there seems to be little recourse for patients who are left with the choice of paying the bills or destroying their credit.

Common Mistakes To Avoid In Medical Bill Debt
While the options for dealing with excessive medical expenses are limited, there is a list of things you should avoid that stand to only make your predicament worse.

  1. Don’t Run and Hide Medical bills are usually larger than a standard credit card bill and the fervor at which hospitals and collection agencies pursue delinquent accounts is astounding. They can create a lot of stress in your life. The more you avoid them, the more they escalate their efforts because they aren’t going away. Honest communication is the best way to defuse the situation. When they understand your situation, they become much more willing to negotiate and work with you.
  2. Don’t Run to the Bankruptcy Courts Right Away – Bankruptcy should only be considered as a last resort because of the lasting damage it does to your credit profile and rating. You still have options such as some type of debt settlement. Whether you choose to initiate this yourself or enlist the services of a debt settlement company, you may be able to save your credit through negotiations with your provider.
  3. Don’t Refuse to Make a Payment In some jurisdictions, you are afforded protection from collectors and lawsuits as long as you are making monthly payments on time. In some cases, these payments can be as small as $5 per month.
  4. Don’t Accept Bills and Insurance Payments at Face Value – As a patient and insurance holder, you have a right to detailed explanations regarding what is being billed and what is being paid by the insurance company. If things seem unreasonable, they most likely are unreasonable. You can contact advocate groups that will help you battle your providers and insurance company. If people start questioning the process, some providers and insurance companies will take note and offer concessions.
  5. Before you make mistakes dealing with your medical bills, you might want to consider contacting one of our professional debt counselors at Rescue One Financial. They can offer information or assistance in working with hospital and insurance providers to get your bills reduced to a manageable level, giving you peace of mind.

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Is it Time to Shift From Debt Management to Debt Settlement?

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switch from debt settlement to debt managementIt’s a harsh reality that far too many people find themselves facing a debt crisis without fully understanding how they got there. Over the past 20 years, credit cards have become so easily accessible that an estimated 60% of all Americans had a least one of the estimated 1.1 billion active credit cards that had been issued by the end of 2012.

According to Federal Reserve Statistics issued in mid 2014, almost 15% of American households have consumer debt that equals 40% or more of their annual income. As one could expect, this fact is leading to a debt crisis for a large number of households. As these debts are turning into hardships, people are looking for ways to solve their debt problems.

Choosing the Debt Management Option
Many people who find themselves overwhelmed by debt will choose to enter into some type of debt management program. This type of program might come in the form of an informal attempt to manage one’s debt on their own or more likely, the individual might choose to enlist the services of a debt management company. In this type of arrangement, professional debt counselors are assigned to help debtors analyze their financial situation and come up with a plan to combat excessive debt problems. The debt management process includes budgeting and working with creditors to get penalties waved, interest rates lowered and payment amounts decreased. The intent is to help the debtor create a plan that allows them an opportunity to reasonably and responsibly pay off all their debt while removing the stress related to dealing with creditors. If you are one of the people experiencing severe debt problems, this is certainly an approach you should consider.

When Is It Time to Change Strategies?
You should be aware that a debt management program is the best alternative to dealing with consumer debt problems. It has the least amount of impact on your credit rating and affords you the opportunity to meet your obligations in a responsible manner. That said, there may come a time when your debt management program is no longer giving you the protection you need. Factors that could affect the viability of a debt management program are:

  • A change in life circumstance such as loss of employment or injury
  • Continued harassment from some creditors
  • Unintended increase in overall debt or decreased income

If your debt management program in no longer viable, it may be time to take the next logical step and start pursuing a debt settlement process. This process is best handled through your debt counselor. Their new responsibility will be to contact your creditor, explain the situation and attempt to negotiate lower debt amounts and interest rates that are more manageable.

If your debt situation has become unmanageable and you need help, you can contact Rescue One Financial. We would like to match you with one of our professional debt managers who will help you identify the best strategy for dealing with you problem debt in a responsible manner that allows your to find financial stability.

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How Debt Management Companies Negotiate Terms With Debt Collectors

For individuals who are struggling with debt issues, the time they devote to dealing with their problems can become a hardship on their lives. Many people, who find themselves in this situation, are usually at a loss as how to alleviate these problems. For those who are considering the services offered by a debt management company, it might be beneficial for them to understand the process of how debt management companies negotiate terms with debt collectors.

how to negotiate credit card debt

Are Creditors Motivated to Negotiate?
The short answer is YES, very much so. While credit card and consumer loan companies expect to be paid, they are realistic about the prospects of being repaid by individuals who are suffering debt hardship. In many cases, creditors are aware that the costs associated with collection efforts and the filing of lawsuits are often best avoided from a fiscal standpoint if they can in fact get some portion of the amount owed.

How Does A Debt Management Company Proceed?
In order to understand how a debt counselor deals with creditors on behalf of a client, a step-by-step process provides the easiest explanation. Note: If a consolidation loan is the best solution, no negotiating is necessary as the creditor will be repaid in full. The purpose of the negotiations is to make an effort to avoid bankruptcy.

  • The first step, and most important one in the process, is to sit down with the debtor and complete an honest review of the individual’s financial situation. It is necessary for the debt counselor to understand the amount of debt owed, the sources of income available to repay debt and the extent to which debt issues are affecting the debtor’s life.
  • Armed with this information, the debt counselor proceeds to contact the appropriate creditors through the creditor’s designated company official to layout the situation.
  • At this point, the creditor will most likely give a clear indication of whether or not they are open to negotiations. Remember, creditors are not obligated to do anything.
  • As as professional debt counselor, they do have a certain bit of credibility with creditors. Therefore, the debt counselor will usually discuss what he feels the borrower is capable of handling in the form of a recommendation. That recommendation might include as little as interest rate reductions only and as much as interest rate reductions plus debt reduction, lower payments and forgiveness of late fees.
  • The creditor then makes a demand and the two parties begin negotiating down to a final resolution when each party feels they have secured the best possible resolution for their respective sides.

At Rescue One Financial, we understand the negotiating process and have an abundance of experience dealing with creditors. Our debt counselors are interested in helping you to create a repayment plan that allows adequate debt relief and gives you ample opportunity to reestablish financial security without the stress related to dealing with ongoing credit issues.

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