Consumer debt can be crushing. Late and overlimit fees can rapidly cause the amount of debt to skyrocket, making it nearly impossible to afford even the minimum monthly payments. Eventually, this vicious cycle can make debt repayment an insurmountable obstacle. Despite the best intentions, many consumers give up on repaying their debt when repayment seems unattainable.
The consequences of failing to make payments are significant. Credit scores will often plummet, affecting the ability to obtain additional credit. A poor credit score can complicate the ability to obtain housing, utilities and even employment. Depending on the creditor, it is possible to be taken to court or have wages garnished. Some items could potentially be repossessed. The inevitable endless calls from harassing creditors and threatening letters in the mailbox can cause substantial stress.
At this point, things often seem hopeless. Debt settlement may be the best solution to resolve the problem. Debt settlement offers many benefits to cash-strapped individuals in debt.
Debt settlement can reduce the total amount of debt repaid.
Debt settlement offers should represent a significantly reduced payoff. The first offer may be too high. Individuals should hold out to an offer of 50 percent or lower. Keep in mind that the creditor will be including late fees and accumulated interest in their total amount. Individuals must insist on a settlement offer of no higher than 50 percent. It is possible to pay as little as 30 percent of the total bill.
Debt settlement can reduce or eliminate harassing collection calls.
Once enrolled in a debt settlement plan, calls eventually taper down. It may take some time, so exercise patience.
Debt settlement can break the payoff amount into manageable payments.
The inability to pay huge monthly payments is what gets most individuals into this situation. Debt settlement allows individuals to make several smaller payments.
Debt settlement can improve credit history.
Request that the credit report is marked that the account is paid. Typically, the report will state that the account was paid for a reduced amount.
Debt settlement can prevent further collection activity.
Once payments are being made, no further actions will be taken against the debtor.
Debt settlement can help those in debt avoid bankruptcy.
Paying off in a manageable way lets debtors avoid the ultimate credit nightmare of bankruptcy. Debt settlement is a viable option for reducing the stress of indebted individuals.
Learn more about our debt settlement services by contacting, Rescue One Financial, we have helped thousands of people settle their debts and we can help you. We have a reputable reputation in our industry learn how we can help reduce the amount you owe.
When carrying a lot of credit card debt, many people feel they will hurt their credit score. However, other people think there is no harm carrying debt as long as they can pay it off with ease. With that being said, here is a quick guide explaining why credit card debt hurts the score of a consumer.
Ability to pay off: When a person has a few hundred dollars in debt, they will not hurt their credit score much, if at all. Since a consumer will have little trouble paying off such a small amount, they should not worry so much about hurting their score drastically. However, when carrying multiple thousands of dollars in debt, a consumer will have a difficult time in paying off his or her debts. One must remember that lending institutions fear this problem since a person with heavy debts is one major problem away from insolvency. In reality, a person who pays off a massive debt or more will see a serious rise in his or her credit score.
Debt ratio: Of course, it is not so simple to measure debt levels. Some people have multiple credit cards and spend thousands of dollars every month and end up carrying some debt occasionally. This should not cause a drop in the credit score when a person has tens of thousands of dollars in available credit. In fact, this ratio is more important than most realize as it is a telling sign about repayment ability.
Debt to income: More importantly, when earning a lot of money, some people naturally carry a lot of debt for their business or other ventures. While this might look bad on paper, a person with a high income and the ability to repay bills will not see much of a drop in his or her credit score. Remember, payment ability is the most important thing and the credit bureaus look at this to calculate the score.
Without a doubt, too much credit card debt will hurt a person’s credit score and can hurt it drastically in some situations. While it is not as drastic as most people fear, it is something to worry about and fully understand. However, there are other important factors to look at and consider such as payment history and how long they have an established credit profile. If you’re drowning in debt and your monthly credit card payments are stacking up contact, Rescue One Financial, we will work with your creditors to reduce the amount you owe and help your settle your debt.
Unlike the debts a person already owes, debt management is not legally binding. The debt management plan costs nothing and it is voluntary. No laws require anyone to pay their debts off with debt management. They can quit using it anytime they like. Instead, debt management is a tool people can use to solve their problems.
Debt is a Real Problem
To deal with debt problems can be depressing and lonely, and without the help of a debt management service, matters can become worse. Problems on the horizon include court actions including garnishments, destroyed credit and relational problems with financial institutions. When you have serious debt problems, you need objective, compassionate and experienced advice. People need to understand critical things, such as:
- Does debt management amount to a loan to pay off my debt?
- Will bad credit affect my application to set up a debt management plan?
- What kind of income is required to enroll in debt management?
While people have every right to a fair and equitable financial solution, they must never lose sight of the goal of resolving a bad debt problem. A solution means:
- A return to solvency
- The Prospects for a brighter future
Let Debt Management Work for You
Debt management programs are in force until all the debts are paid off. When financial institutions agree to a debt management plan, they often raise the interest rates. In addition, the amount the debtor has to pay is often low, so payments are stretched out over a long period.
- Responsibility – putting the onus for the debt on the creditor is important. Debt management is not another loan to pay off the debt.
- Level of income – Earning a level of income is an important factor in enrolling people in a debt management.
After people pay basic living expenses of rent and food, anything beyond is available to pay off debt. With the right level of income, debtors can become eligible to start a debt management program.
When a person is in debt, it is important to find solutions to the problem. Your credits score improves the moment you move forward and take the steps to solve your problem. Debt management looks for a fair and equitable way to pay back debt. It is a legitimate way to solve the problems that debt causes. Let Rescue One Financial assist you with our proven and reputable debt management services.
Most entrepreneurs, at some point, need to borrow money to fund their business operations. This is difficult to avoid as a loan can help a person build market share and make more money in the long-term. However, plenty of new business owners do not have pristine credit and must work harder to find the required funds for their businesses. Here is a quick guide on how to get small business loans with bad credit.
Merchant cash advance: An established business can borrow money via a merchant cash advance. This short-term loan is paid in a lump sum to the account owner who can then do anything with the money he or she pleases. Of course, the merchant services company will, in exchange for the loan, receive part the company’s credit card sales in the future. The downside with this loan type is a person will receive a high interest rate. However, when looking for a quick turnaround, one should consider a merchant cash advance as they will, generally, receive the funds within 48 hours.
Business credit cards: Most entrepreneurs have at least one or two credit cards. When a person has established credit and open lines, they can buy supplies or invest in the organization in other ways. This is an excellent short-term solution for a business with temporary cash flow problems. On the other hand, when looking for a long-term fix, a company should seek other borrowing options.
Private loan: A person with no options should consider getting a private loan from a friend, family member or business associate. Now, this is not a wise first choice as it can lead to problems in the future if they have difficulty in repaying the loan. On the other hand, this is a great option for an individual who has friends with some extra money.
Improve credit: A business owner who does not need money immediately should consider cleaning up his or her credit report. When paying off old debts and fixing any credit report issues, a business owner can see his or her credit score rise quickly. This has two benefits as a business owner will not only qualify for more loans, but he or she will get a lower interest rate than they would have in the past.
While it is not impossible to get a loan with bad credit, a business owner will have to try harder than his or her counterparts who have excellent credit or end up using their credit card. At Rescue One Financial, we work with all of our clients to ensure they can meet their financial deadlines and prevent them from using their credit card to meet payroll or any other outstanding invoices. When you choose us for a business loan, we eliminate the hassle of dealing with lenders, since we have relationships with many lenders an we’ll provide you with a loan at low interest rates.
Living with debt can quickly become a stressful lifestyle. The idea of overdue bills, random debt collector calls, and a lack of income can cause serious anxiety. However, when considering ways to get out of debt, there are some legitimate options available. The first step to becoming debt free is to understand your specific situation. The next step is to understand the difference between debt consolidation and debt management. For those that are severely in debt, it is beneficial to understand this difference. This can help anyone in debt realize which option is more suitable for their particular situation. Furthermore, this can help them get out of debt a lot quicker.
Debt Management Company or Consider Debt Consolidation
The main difference between these two options is debt consolidation requires obtaining a loan and using the loan money to repay your creditors. On the other hand, a debt management company provides a contract and a debt management plan (or DMP) to help eliminate debt.
The option to use a debt management company, such as Rescue One Financial, depends solely on the individual situation. This type of company helps to “manage” the debt by collecting a monthly payment from the debtor and dispensing the payment among several creditors. In most cases, the company has arranged for the debtor to receive lower payments and lower interest rates. This is an ideal option for someone in debt that can afford the company’s initial fee and another additional monthly payment. It is important to note that, unlike debt consolidation, this does not require a loan. Ultimately, the company provides a contract and a DMP that states explicitly how the debtor will become debt free.
After a DMP is accepted, it is important to ensure that the debt management company is making consistent and timely payments. The length of time for the plan can vary significantly but regularly reviewing the monthly statements can guarantee that you are debt free on schedule. When using a debt management company, it is vital that creditors are being paid based on the timetable of the DMP.
Hiring a debt management company is an ideal option for living a debt free lifestyle. However, it is not an option for everyone. It is important to understand the details of the debt situation and choose an option that is most appropriate. If receiving a loan is an easier solution, then debt consolidation is probably more suitable. If paying a monthly fee to a company works better, than debt management seems preferable.
Debt management companies give help to people who can barely help themselves. Programs are designed to reduce interest, stop collection calls and get rid of major credit accounts. There are legitimate companies who fulfill the goals of any personalized financial plan. First, people should know the pros and cons of using reputable debt relief companies. They are ways that they can receive the most benefits from these programs.
- Know the Exact Route to Take
- Change Money Habits
- Know How It Will Affect Credit
There are different types of debt relief programs available. Every company has different programs with different terms and conditions. Some companies handle consolidations while others handle settlements. Some companies settle accounts at a percentage of the money owed. Debtors and creditors can agree to negotiate payments that remove debt over several years. People must know the exact course of action to take if they want long-term debt relief.
Relying on a debt relief company is a wise choice, but results do not come overnight. The real solution lies in the actions of customers. They have to improve their saving and spending habits. A debt relief company requires a series of payments made on time. Late payments are unacceptable and include hefty fees. Debtors must get used to following schedules if they want to reverse bad financial decisions. They can no longer skip payments or make partial submissions. They are at constant risk of having their credit accounts closed and not being able to use the cards. To stay debt-free, it is important to save more and spend less.
Debt relief programs can have poor effects on credit ratings. It may be necessary to shut down an account, which shows up on the credit report. Sometimes, changes to the payment terms are reported by the credit card provider. A report may or may not improve after the completion of a program. Some people have problems that cannot be solved by debt relief. For people on the program, they must continue making payments and not do anything that jeopardizes the results.
The most effective debt relief program does not come in one size for everyone. Some people end up regretting that they got involved. Even so, there are numerous benefits associated with every debt relief program. Many people keep their interest rates down and pay what they can afford. Interested people should contact a debt provider who will provide a long list of options.
Rescue One Financial’s LinkedIn Company Page
Living with crippling debt can be limiting, discouraging and frustrating. Your credit score affects everything from your ability to get a car loan to the chances of landing your dream job. Some people check their partner’s credit before deciding to get married. Because of the negative effects of debt, many people try to eliminate debt. Unfortunately, many of them fall short of their goals and fail. By examining the top mistakes people make when trying to pay off debt, you can avoid them and enjoy a debt-free life.
Failing to Change Damaging Behavior
Some people get an unexpected lump sum of money and decide to pay off debt once and for all. Many of these people will end up struggling with debt again in just a few years. Rescue One Financial, one of the premier debt management companies in the United States, sees many consumers who fall into this category. Unless you change the behaviors that caused the debt in the first place, you will find yourself repeating the same mistakes again and again. Rescue One Financial’s LinkedIn page offers helpful tips for identifying and changing behaviors that lead to debt.
Going it Alone
Many consumers try to clear massive debt on their own. It can be a full-time endeavor to track down all of the debts owed, contact creditors and create a plan of action. Rescue One Financial has a team of experts who are skilled in creditor negotiations. In many cases, they can decrease your debt by up to 60% or more. By enlisting the help of the professionals, you can save thousands of dollars in interest and late fees. Rescue One Financials LinkedIn page has profiles of its skilled financial experts that you can review.
Not Rebuilding Credit
One of the mistakes that many people make when trying to get out of debt is not rebuilding credit. Start to slowly obtain new sources of credit while repaying debt and watch your credit score soar. Rescue One’s debt management program will teach you the ins and outs of responsible credit management. Check the Rescue One Financial LinkedIn page for more resources about rebuilding credit while repaying debt.
Ignoring outstanding debt is not going to make it go away. By ignoring it, you will only make things worse. Face your debt and break it into manageable pieces to make it easier for you to handle. The experts at Rescue One Financial have seen many cases and are experienced in treating you with the dignity you deserve. Get out of debt today with Rescue One Financial.
Irvine Based, Rescue One Financial
Millions of Americans are trying to tackle their debts. Many have encountered the unscrupulous practices of debt collectors in the process. Legislators are working hard to eliminate and enforce certain practices. Many consumers are unaware of the many unlawful practices many of these debt relief agencies engage in when it comes to attempting to enforce a debt.
What the worst offenders do
Lawmakers and watchdog groups are looking at ways to eliminate multiple calls made to a person within one day without verifying that the debt is owed. Debt collectors are actually required to confirm the debt beforehand.
Debt collectors should not contact the person multiple times in any given day. Many people are unable to receive personal calls at their place of business. Doing so may put their jobs in jeopardy or interfere with their work performance.
Use of intimidation tactics is also being reviewed. People are often harassed repeatedly and abused during the course of collecting a debt. The goal is to promote best practices among debt collectors and prohibit the use of abusive, intimidating tactics.
Continuing to contact a person after receiving information about a debt is another common problem. It has been found that many collectors continue to contact a person repeatedly after there has been a refusal to repay the debt. Contacting the customer after he or she requests no further contact is another concern.
Contacting other parties about a debt is another common practice. In some cases, the debt collector will contact an independent third party to discuss the matter at hand. Legislators want to ensure that individuals are protected from this particular practice.
How it becomes overwhelming
Abusive, oppressive debt collection activities can make debt really stressful for the average person. Additionally, the average person with a busy life doesn’t have time to research their rights or work one-one-one with company to resolve their debt. Additionally, the average person doesn’t have the time to negotiate the perfect settlement for their individual scenario. The person then encounters barriers to obtaining affordable financing and often continues to fall further behind on their bills due to accumulating interest.
Many consumers are finding that it is often easier to work with a reputable debt management firm. Companies like Rescue One Financial work closely with their customers to find solutions for resolving outstanding debt. Trained counselors provide free consultations and develop repayment strategies to get the person out of debt quickly. These licensed professionals have worked with clients for years, helping them resolve medical, unsecured loan, student loan, collections and other forms of personal debt.
Rescue One Financial Debt Management
Debt has become a way of life for many people who owe student loans or credit card bills. A debt management plan (DMP) is an effective solution that is offered by top-notch financial experts. Its efficiency depends on the complexity of the debts and a person’s willingness to participate in the plan. People can erase years of debts within a few years as long as they follow the rules. Debtors should learn more about the Rescue One Financial debt management plan, and decide if it is right for them.
An effective DMP comes with several advantages. People no longer pay the creditors directly and pay through the debt planner instead. For a low monthly cost, the planner sends the right payment to the right creditor. Many debtors have trouble keeping up with their lists of creditors. Instead of paying several creditors, they make a single payment to the debt manager. Also, a manager is specially trained to negotiate more affordable interest rates and payments. Many people who have followed the plan exactly will avoid major problems like bankruptcy. Almost all types of debts can be erased with the exception of taxes, child support and court-ordered bills. Overall, the managers end the harassing calls and letters made by creditors.
Rescue One Financial Debt Management Services
A debt planner starts by making the client list all of the secured and unsecured debts. The monthly payments and late fees are included. First priority is usually given to the largest debt. Then, a client works with the planner to create a monthly budget. The client learns how to balance earning with spending. The least important expenses are cut out and spent on bills. After cutting out certain expenses, a planner may recommend that the client find a greater source of income.
When you put all your personal matters into one debt management company, trust that the professional will do the job right. Some companies leave a trail of errors or negotiate the wrong payment amounts. Other companies charge a collection of heavy fees, which does not help a debtor. Also, creditors are not obligated by law to follow a debt management program. That makes it even more important to choose the most experienced and persuasive debt management provider. All debtors should trust in the proven efficiency of a Rescue One Financial debt management plan and have their debts erased right away.