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How Debt Settlement Can Help Pay Off Large Credit Card Debt

Many consumers today are struggling with credit card debt. Since these cards are widely available, many people make the mistake of taking out several of them and maxing them out without being able to pay them back. It is not uncommon for consumers to be more than $20,000 in credit card debt with interest rates as high as 23%. This can make for very high payments each month that consumers simply will never be able to pay. Rather than declaring bankruptcy, consumers can consider settling the debt. Below is an overview of some advantages of settling credit card debt.

howdebtsettlementcanhelppayofflargecreditcarddebtAvoid Bankruptcy
Bankruptcy can be a traumatic process that can make it difficult to get loans in the future. Rather than spending thousands of dollars to declare bankruptcy, consumers can hire a debt settlement company, like Rescue One Financial to guide them through the process of settling their debt. When credit card debts are settled, Rescue One Financial works directly with the credit card company to reduce payments to an amount that the client can afford. If possible, credit card companies would like to avoid the expenses associated with bankruptcy as well.

Maintain the Right to Declare Bankruptcy
Another big advantage of avoiding bankruptcy protection for credit card debt is the ability to exercise the right in the future. Individuals who choose to declare bankruptcy will be unable to do so again for another seven years. In the event that more debt is accumulated, consumers will have no protections available to them for nearly a decade. This could be much more costly than even a higher monthly payment related to credit card debt.

More Affordable Payments
Consumers who settle their credit card debts can usually get more manageable monthly payments that they can afford. This can more than justify the expenses of going through the process since interest rates can be reduced and amounts owed can be cut down. Rather than dealing with wage garnishments or collections agents, consumers can make affordable payments and gradually pay down the debt.

Improved Credit Score
Once the credit card debt has been settled and consumers are able to make their payments on time, their credit scores may gradually improve. Many people struggling with credit card debt have poor credit scores which can make their lives difficult. Consumers can benefit in the long run by making these payments on time and thereby increasing their credit scores. By doing this, consumers can avoid these issues repeating themselves later and can look forward to a bright financial future.

If you’re unsure of where to start, seek help with the experts at Rescue 1 Financial who are always standing by.

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How to Qualify for Debt Settlement

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Debt settlement is a process in which a creditor agrees to settle a debt for a portion of the balance. In other words, the debtor only has to pay back a certain percent of the balance on an account, and the creditor will forgive such an account. Debt settlement is different from debt management because a consumer pays the credit assistance company and that person then pays all the creditors. In a debt settlement situation, the debtor pays the creditors, and the debt settlement company charges the debtor for its services. The fees may be a certain portion of the saved debt amount.

Come to a mutually satisfactory agreement and settle debt

Come to a mutually satisfactory agreement and settle debt

How to Qualify for Debt Settlement
To qualify for debt settlement, a debtor must have enough funds to pay back the debts once the counselor negotiates for the reduction. The debtor should have a separate bank account for all funds that he or she intends to submit to creditors for the debt settlement amounts.

A person who wishes to qualify for debt settlement should have at least $7,500 in total debt. Anyone who has less than that amount of debt can try alternative options such as negotiating with the creditors alone.

The applicant must have unsecured debt. Unsecured debt is any credit account that is not secured by an asset such as a car or home. Examples of unsecured debt are credit cards, medical bills, utility bills and personal loans. Student loans and tax debts do not qualify for this program.

A debt settlement is only available in certain states in the United States. Additionally, the debt settlement can differ greatly from one American state to another. For example, a consumer can apply for debt settlement in Florida. The state of Florida also has many laws in place that protect the debtor against wage garnishment, harassment and bank account seizure.

Getting Help with Debt Settlement
If you feel as though you qualify for debt settlement, then you can have a reliable company, such as Rescue One Financial, help you with the process. Rescue One Financial will explain the process in a manner that you can fully understand. A representative will offer to negotiate with the creditors for you. Negotiation is something that you can do yourself. However, debt settlement companies have personal relationships and experience with the creditors. Therefore, they have more leeway for negotiations. Contact Rescue 1 Financial today to learn whether debt settlement is an option for your financial situation.


How Do I Apply For A Small Business Loan?

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A small business loan can provide the financial boost you need to excel in life and achieve your goals. As long as you have a sound business plan in mind and are willing to exercise hard work and effort to achieve your goals, a small business loan will provide the leverage required to build your very own business empire. It is recommended to include loan repayment in the planning phase of your business. Depending on the nature of business, you can determine the optimal amount of financing that you need to embark on your business venture. Professional consultation, offered at Rescue One Financial, may also be sought for these matters.

Be organized with your financial documents and business plan!

Be organized with your financial documents and business plan!

Applying for a Small Business Loan

  1. Get a copy of your credit report from some of the major credit reporting companies. This is usually the first requirement laid down by most financial institutions.
  2. Gather the essential financial statements. Generally, the financial documents required by a lender include balance sheets, income-statements and net worth reconciliation for the past 2 to 3 years. The financial statement submitted to the bank or other financial institution should generally be current and not more than 2 to 3 months old. If you are setting up your business for the first time, you must provide your balance sheet and income statement.
  3. Project your future business operations. Cite industry standards to project positive cash flows yielding from your planned business activities as well as the time required to achieve those landmarks. You can search for samples of profit and loss projection on the Internet. Pre-formatted spreadsheets can be of great help.
  4. Show your own equity invested in the business. Banks need to know that their money is safe and it will be repaid to them in the stipulated time. By seeing your own equity invested, they will feel more secure about offering you a loan.
  5. Select the financial institution to which you want to apply for a loan. Find out the specific documents that the institution needs.
  6. Create your executive summary and business profile. The summary can include a short description of your business, the purpose of loan and how you intend to pay back the money. It won’t hurt if you provide the resumes of business owners as well. Write a strong business profile that reflects your history, strengths, product features and the business industry.
  7. Request an appointment with a consultant, such as Rescue 1 Financial, for small business loans and financial institutions. Go through the necessary documents with the consultant to make sure that you haven’t missed anything.
  8. Submit your application, along with all relevant documents, to the correct person and address of your financial institution. Be patient and wait for a response!


Obtaining Business Credit

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Insufficient start-up capital can hinder the progress of a new business, and a lack of ongoing working capital can doom any business no matter how old. Access to business credit is critical, but obtaining a business loan is easier said than done. Here are key things Rescue 1 Financial believes you should remember as you seek credit for your business.

Banks and other lenders carefully analyze your capacity for repayment. To do this, they review personal and business financial records that help them understand your cash flow, both past and future. The most common documents used include:

Create an updated balance sheet listing assets and liabilities

Create an updated balance sheet listing assets and liabilities

  • Financial statements outlining your assets, liabilities and net worth
  • Income statements and tax returns detailing income, expenses and cash flow
  • Records relating to inventory and accounts receivable that reflect critical issues specific to your business
  • Future projections including reasonable assumptions that support your ability to pay going forward

Detailed, accurate financial reports are critical, and you should file tax returns on-time whenever possible.

Lenders also want to understand your character or willingness to repay even if times get tough. To do this, they review personal credit bureau reports along with business credit reports, such as Dun and Bradstreet, and credit references from vendors and other credit providers you use. It is important to keep your personal credit history clean, and also to be diligent in meeting all payment due dates associated with your business.

In most cases, to obtain business loans you will need some form of collateral. Collateral provides additional protection for the lender if you become unwilling or unable to repay. This can take many forms (real estate mortgages, liens on accounts receivable or equipment, etc.) but the key is to have equity. If all of your assets are already pledged as collateral on other loans, or if you’ve failed to make cash down payments to build equity in your assets, you may be denied even if your cash flow is great and your credit is clean. Be conservative, live within your means (both personally and in your business) and put significant cash into purchases so you have adequate collateral to qualify for the credit you need.

By understanding and managing your payment capacity, your credit history, and your available collateral, you can obtain the right loans to support your business today and into the future.

If these steps pose as any concern or perhaps you are still confused as to what to do, rather than risk a damaging mistake, look to professionals for assistance. Representative’s at Rescue One Financial are standing by to help.


How Do Small Business Loans Work?

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One of the ways banks and credit unions serve the community is by loaning money to businesses. This money is used to finance business expansion, capital acquisition, and indirectly helps boost the economy when businesses have to hire more employees to meet demand.

Financing a business and getting it started properly is something small businesses must to do. Often, there’s a learning curve involved, but it is not excessively steep. Rescue 1 Financial has compiled some basic rules to attaining your own small business loan.

How The Lender Makes Money

A business lender lends you money and expects you to pay it back with interest. Business loan interest rates are usually lower than personal loans, but with longer terms. Many businesses use rotating lines of credit with their business lenders.

Just remember that for a lender, a longer lending term at a lower interest rate usually makes them more money (and you end up paying more over the term of the loan, albeit in smaller chunks).

Cash flow and Loans

There are two common time points where businesses fail: Within the first year of operation, and at around the three year anniversary mark, when the business, if successful, has to fund an expansion. The general rule of thumb is that you should start the business off with modest financing, and try to run it for the first eighteen months on a cash flow basis (money coming in is used to pay bills as they come in), just to see how your cash flow compares to your expenses. Many businesses are afraid to take on debt when they need to make an expansion, don’t get enough financing, and choke themselves just as the business starts to grow.

Opening your own business doesn't have to be scary!

Opening your own business doesn’t have to be scary!

Sources of Capital

Most small businesses, such as family restaurants, are funded by loans from family members, rather than a standard commercial business. Medium sized businesses, businesses with high initial capital investment requirements, and franchise businesses, usually require that the prospective owner get outside capital arranged to take off, with banks and credit unions being the primary lenders. The Small Business Association, and parallel State and County level loan programs also provide loans to small businesses, with competitive terms.


Regardless of the source of your loan, be sure to get an agreement in writing, specifying the amount borrowed, the interest rate, and the payment schedule. The purpose of a written contract is to protect you if something goes wrong. While you are at it, be sure to file the paperwork with your state to form a Limited Liability Company, so that if the business does fail, you’re not personally liable for the debts.

Financing your business, and getting through the steps of the learning curve can be greatly aided by talking to a professional. Feel free to contact Rescue One Financial if you need help.


How to Get a Loan to Start a Business

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For many entrepreneurs, obtaining loans is necessary to accomplish business goals. Not all loans come with the same types of lenders, interest rates or payment requirements. Also, there are specific types of loans made for minorities, small business owners and people with bad credit. Rescue 1 Financial believes people should learn about the options available before they apply. There are certain steps involved in the process of getting a business loan.

Getting a business loan is a process similar to applying to a school. Lenders want to work with businesses that are serious and determined to use the funds appropriately. The banks and lenders have to verify the applicants’ words. When lenders review applications, they look for several factors:

Implement a well thought out business plan

  • A well-developed business plan
  • Steady employment
  • Good credit

Most banks and financial institutions want to see a realistic business plan. This plan is more detailed and important than the loan application. It provides an overview of the company’s goals for the present and future. The lenders know exactly how the funds will be spent. They also know the exact amount needed and the predicted return on investment. In addition, the marketing plan shows how the company wants to retain old customers and reach out to new ones. Without customers, the business does not make sales or earn profits. The lenders may request changes to the plan so that it suits their requirements. Overall, lenders want to see long-term goals and details in a well-developed business plan.

The lenders want to know exactly how business owners plan to use the funds and make repayments. One of the most important factors is credit. Getting a good loan is done only by having good credit. Lenders want to see a history of borrowing responsibly and paying on time. They lose money if payments are not made on time. They want to see a high credit score that indicates a stable history. Whether the borrowers want to become partners or sole proprietors, they must build good spending and borrowing habits.

A few steps are required to prepare and apply for a business loan. The first step involves reviewing the credit and ensuring that the loan obligations can be made. Then, it is important to create a well-thought-out business plan. After the borrower puts the details on paper, they should find the right lender that provides the specific loan that they want. Any professional who needs more information about the process should contact Rescue One Financial for assistance.



How Much Credit Card Debt Is Too Much?

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When paychecks don’t seem to fill all financial needs, consumers often turn to credit cards to close the gap. From frequenthow much credit card debt is too much flyer miles to department store perks, creditors make their cards look and feel appealing for almost any buyer. However, Rescue 1 Financial wants to remind you that credit needs to be managed wisely to benefit credit histories and scores. There are several signs that tell consumers that they have too much credit debt.

Only Affording The Minimum Payment

When consumers aren’t paying attention to their credit card balance, they may be surprised by the monthly bill. If consumers find themselves only affording the minimum payment each month, the debt amount is too high. Each creditor requires a certain percentage of the balance to be paid each month, along with interest. A high balance equals a high minimum payment, however. Credit card use needs to stop at this point to pay down the balance.

Considering Credit Utilization Ratios

According to, consumers should only use between 10 and 20 percent of their maximum credit card limit. Referred to as credit utilization ratios, a low balance compared to a high credit limit looks good to creditors, effectively raising credit scores. For example, consumers are only using 15 percent of their card’s limit if they have a balance of $1,500 on a $10,000 limit. Going above 20 or 30 percent is too much debt.

Relying On Credit For Everyday Purchases

Consumers that don’t have enough funds to pay their groceries at month-end will often turn to credit cards. When they rely on cards just to make ends meet, too much debt is typically the end result. They are spending more than they make at that point, so they won’t catch up to pay the card down.

Skipping Payments

One of the most obvious times that debt is out of control is skipping payments on bills. Consumers may skip paying the electrical bill to pay the credit card one month, while skipping the second credit card next month to catch up on the overdue electric bill. At the very least, no other charges should be placed on the credit card, allowing the consumer to catch up.

Spending less than a person earns is the goal for consumers, leaving the credit cards for special purchases only. If consumers have any questions about their debt or money management, contact Rescue One Financial for expert advice and help. Reducing debt is the best way to keep credit scores high.


Can Consumer Loans Be Consolidated?

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Most people have found themselves with an unmanageable level of debt at some point in their lives. Rescue One Financial knows that when you have multiple outstanding loans at various interest rates, all higher than what you can afford, the thought of ever getting them paid off or even paid down to a reasonable level can be daunting. Just managing the different payments and making sure you get them in before their due dates can be stressful.

If you’re facing a situation that sounds eerily like the above, then Rescue 1 Financial has good news. There are a couple different ways you can consolidate your consumer loans into one and make a single payment, usually at a much lower interest rate than what you’re currently paying on any of your individual loans.

As with any financial decision, what is right for you depends on your individual circumstances and your ultimate goals. The following is a synopsis of two different ways you might be able to consolidate your consumer debt.

Use a Credit Counseling Service: Credit counseling services are intermediaries to which you pay a monthly fee to manage your debt. They will establish themselves as the point of contact for each of your creditors and attempt to negotiate lower interest rates and even reduced principal balances in some cases. Once everything is set up, you begin making a lump sum monthly payment to the service, which then distributes the money to your creditors on your behalf.

The biggest drawback to credit counseling is what it does to your credit report. Most lenders view a customer in credit counseling as if they were in a Chapter 13 bankruptcy. This will possibly prevent you from getting a mortgage, car loan, or even a credit card. But if getting out of debt is your primary goal, how that affects your ability to take on new debt should be secondary.

Consolidate Debt with an Unsecured Loan

Consolidate Debt with an Unsecured Loan

Obtain an Unsecured Debt Consolidation Loan: An unsecured debt consolidation loan is a loan given by a bank or lending institution in an amount sufficient to pay off your outstanding consumer debt in full. At that point, the only company you owe is the lender who gave you the new loan, typically at a much lower interest rate. Now you only have one monthly payment to make, in an amount that is less than the aggregate of your previous payments.

Because unsecured debt consolidation loans usually require decent credit, it is wise to look into obtaining one before you fall behind on any of your current payments.

For more information on consolidating consumer loans, consider scheduling a consultation with a lending expert at Rescue One Financial.


How to Finance A Car When In Debt Management

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How to finance a car when in debt management There are a number of crucial things Rescue One Financial recommends you consider if you are thinking about setting up a debt management plan. A debt management plan does not include all types of debts. Debt management operates by decreasing unaffordable unsecured debt repayments. This includes credit cards, personal loans, etc. This will affect what types of car finance that you can include in a debt management plan. This is because it doesn’t reduce debt repayments.

For instance, an unsecured loan you have taken out for a car could be included. However, any secured loans could not be included. You cannot include a Hire Purchase agreement in a debt management plan. It is considered a secured debt as well. A debt management plan can still help you stay on top of your secure debts as well as other priority living costs. If you are confused about a debt management plan or do not know where to start, professional help with Rescue 1 Financial may be of some assistance.

Types Of Car Finance Included In A Debt Management Plan
If you have taken out an unsecured loan to help you fund the cost of a vehicle, you can include this debt in a debt management plan if you are struggling to make your payments. Secured loans cannot be included as part of the debt management plan. This includes vehicle loans. This occurs if you have agreed that you will lose the car if cannot make the payments.

You cannot include Hire Purchase agreements in the debt management plan. The idea is of HP is that if you cannot afford the payment any longer, then you will have to return the car. You may be allowed to keep your vehicle if you can prove that you need it to get to work. You can continue to do what you have been doing with the HP agreement.

How A Debt Management Plan Works
A debt management plan is an informal repayment plan. You agree to this plan with your unsecured lenders. If you are unable to repay your unsecured debts each month as agreed, this is when debt management can be an alternative. You need to find a way to lower your payments. They need to be lowered to a manageable level.

When you make your payments over a longer period, you will be repaying your debts at a realistic pace. This is the essential of idea of a debt management plan with Rescue One Financial. There are smaller payments that fit around your needs. These needs include food, bills, mortgage, and/or rent. You can repay your debts over longer period of time. And while it is important to keep in mind that the interest will continue to grow, you will also know you are not repaying more than you can afford.


What is Debt Management?

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Rescue One Financial Debt Management

Consumer debt can be compared to a double edge sword. For many people, large amounts of debt causes financial problems. Other people only have a small amount of manageable debt that contributes to the economy. People of various ages suffer from too much debt, ranging from student loans for young adults to medical, home, and credit card debts for older adults.

What is Debt ManagementAccording to The Federal Reserve, the total change of debt for consumers in 2013 had an annual increase rate of 6%, while this rate rose to 6.4% by February 2014. Consumers had $3,099.2 billion in total outstanding debt in 2013. February 2014 had an increase to $3,129.5 billion. Although these are alarmingly high numbers, there are more Americans who are able to handle their outstanding debt, but unfortunately there are still people who struggle. Debt management may be a solution.

By typical definition, debt management is creating a budget and learning how to follow it every day. When it involves a third party company or professional, debt management is a program that helps you create a plan for repayment that fits in your financial limits. The professional creates a customized plan based on immediate and future needs.

A debt management program or plan is not the same thing as a consolidation loan and should not be confused with one. The company creates a program specifically for you and the debts you have. An experienced professional works to reduce monthly payments and interest rates without requiring you to obtain a loan and have another debt to worry about.

Credit scores and histories are not usually a factor in your enrollment into a plan or the conditions of that plan. For many companies, the interest rate on the total amount of debt averages between 6% and 10% depending on the total amount of debt instead of credit. Your credit is used to help create the best plan.

Before debt management plans were offered, people with a substantial amount of debt only had two other main options. They could try to apply for a consolidation or home equity loan or file bankruptcy. Loans are particularly difficult because they rely on your credit history, which is affected by outstanding debt. Changes to bankruptcy laws make it almost impossible to have your debt completely discharged. In fact, many bankruptcy courts now order consumers to enroll in a debt management program.

Credit counseling is generally offered as part of the plan you enroll in. Experienced professionals review your credit history, income, and expenses in addition to creating the repayment plan. The goal is to teach you how to properly manage your credit and keep it good. You will work together to establish and meet specific goals.

Regardless of how much debt you have, you can avoid struggling to pay it all at once. There is help available. To get more information about debt management or if you need any assistance, please ask how debt management professionals at Rescue One Financial can help you.