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3 Reasons Debt Consolidation Loans Are The Simple Solution To Credit Card Debt

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rescue one financial credit card consolidationIf you have inadvertently gotten yourself into debt trouble by relying too heavily on credit cards, you are not alone. The reality is that Americans use credit cards as an everyday form of payment. Unfortunately, they don’t always pay off those credit cards as they had intended. According to the Federal Reserve from a recent survey, 56% of Americans admit to carrying a credit card balance over the prior twelve-month period.

Facts About Credit Card Debt
The Federal Reserve goes on to report that 60% of American households have an outstanding credit card balance of $1,000 or more. Of those households, 25% of them admit to over $10,000 in credit card debt. If almost 14% of their disposable income is being used to service this debt (as reported), it’s hard to imagine why more families aren’t experiencing moderate to severe debt problems. Of course, the longer that debt remains unchecked, the more likely families are to start needing help.

The Debt Consolidation Solution
No matter how bad your debt problems may seem, it’s not something you have to sit by and watch destroy your financial stability. The reality is that you do have options. If your debt situation has not yet reached totally unmanageable levels, you might stand to benefit from a debt consolidation loan. These types of loans are perfectly suited for individuals who seemingly have the means to handle their debt, but they just need a bit of relief from the rigors of dealing with bills and credit card companies. The three most basic reasons why debt consolidation loans provide such a simple solution are:

1. Immediate Relief to Debt Problems – If you qualify for a debt consolidation loan, some or all of your prior lenders are paid off with the proceeds. The late payments, late fees, collection calls and never-ending bills come to an immediate halt. You would be amazed at how fast this begins to relieve your anxiety and associated levels of stress.

2. Immediate Financial Benefits – As part of the debt consolidation process, your effective interest rate and monthly cash outlay will most likely improve rather significantly. As the debt stops accumulating and you stop hemorrhaging cash, your overall financial situation is most likely going to improve. With more available cash, you can avoid using credit cards in the future. Also, you will usually have enough financial flexibility to start accelerating debt payments in an effort to get out of debt sooner rather than later.

3. Minimizes the Effect on Your Credit Rating – The simplest way to save your credit rating when derogatory remarks start appearing is by paying off that associated debt. Once those lenders are satisfied, you can approach them about removing unwanted remarks, which dramatically helps repair your credit score with minimal effort.

At Rescue One Financial, our professional debt counselors stand at the ready to help you with your debt issues. If you would like more information or assistance regarding a debt consolidation loan, we are available to help you through the process and hopefully ease your debt-related stress and concerns.

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3 Reasons Why Medical Bankruptcy May not be A Good Idea

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Medical Bankruptcy May not be A Good Idea
You or a family member have just been through a serious medical situation that required hospitalization. Despite the fact you had medical coverage, your out-of-pocket medical expenses ended up being more than you felt you can handle, causing you immediate stress and threatening your financial stability.

Based on this scenario, you might be surprised to find out that you are one of a large population of people who are faced with a similar situation. According to a recent report filed by the Consumer Financial Protection Bureau, as many as 43,000,000 American families have outstanding medical bills. That number goes a long way in explaining why 62% of bankruptcy filings in 2007 were related to medical expenses. By the way, 80% of those individuals had some type of medical insurance.

The Culprit
When someone ends up in serious debt because of medical expenses, it’s nearly impossible to place blame. The patient didn’t get sick or injured on purpose. The insurance companies are usually clear about what and how much they cover. As for the medical facilities and doctors, it’s no secret that medical costs run very high. Too High? Most likely they are, but there isn’t much a patient can do about it. The truth is that no one is usually to blame for medical debt.

3 Reasons Why Medical Bankruptcy May not be A Good Idea
If your medical expenses are creating serious problems in your life, filing bankruptcy might be something you have or are currently considering. Before you initiate filing procedures, there are three reasons why that might not be a good idea.

1. Severe Damage to Your Credit Score – It is widely understood that bankruptcy severely damages your credit score. More importantly, your credit score becomes an albatross on your financial future for 7-10 years. During this time, you might have great difficulty securing a loan to purchase a home or a car. Ironically, you might also have difficulty securing credit to pay for additional future medical expenses. Another thing to remember is that many prospective employers are starting to use credit reports in evaluating a potential employee’s character and ability to handle responsibility.

2. Legal Fees and Court Fees – While trying to get relief from one kind of debt, you might find yourself incurring new debt in the form of court and legal fees associated with bankruptcy proceedings. You can try to handle everything yourself, but bankruptcy laws have become so complicated that you might need an attorney to protect your rights.

3. Possible Tax Liabilities – There are situations where debt discharged through Chapter 7 proceedings might be subject to income taxes. The IRS refers to this as Cancellation of Debt (COD) income. If applicable, you could be required to claim the amount of discharged debt as part of gross income, creating a tax liability at the effective tax rate.

If you are considering medical bankruptcy, you might want to consider contacting one of our professional debt counselors at Rescue One Financial. We have over 10 years of experience and we may be able to suggest ways to eliminate your medical debt and help you avoid the negative aspects of bankruptcy.

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Does Talking or Thinking About Debt Make You Nervous?

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Thinking About Debt Make You NervousDebt has the capacity to create a full range of emotions in people from all walks of life. In America where debt has become an accepted part of the culture, debt still creates a great deal of both anxiety and stress. At issue is the ability of debt to dictate so many aspects of one’s like. The fact is that debt makes people nervous just talking or thinking about it.

The Importance of Credit
The overall importance of having a good credit score cannot be over-emphasized. How many Americans could afford to pay cash for a home or car? Without a credit card, how would people be able to make purchases over the internet or handle emergencies? The answer to those questions would be “very few.” When you factor in the notion that employers now use credit reports as a tool to evaluate the viability of prospective employees, you can begin to see how credit permeates the fiber of American life.

When Debt Starts Mounting
For the most part, debt problems are created despite the borrower’s best intentions. That said, they usually occur because people have acquired poor consumer spending habits such as impulse buying, lack of discipline and an over reliance on credit cards and consumer debt. Americans had $882 billion in credit card debt based on figures released by the Federal Reserve late last year. The average American household was carrying approximately $16,000 in credit card debt and using 13.9% of their disposable income trying to stay up on payments. Based on this information, it becomes understandable why debt makes some people nervous.

Does Talking or Thinking About Debt Make You Nervous?
You should think of this question in terms of where you and your family’s finances stand at this point in time. If you are an average American family, then it’s reasonable for you to get progressively more nervous about your debt situation, especially if you are experiencing issues such as late payments and/or creditor calls. You are probably in the beginning stages of worrying about how you’re going deal with mounting debt. You might also find yourself thinking and talking about your debt problems a lot more than is necessary, but you can’t seem to get shake the feeling of impending disasters.

Relax
If debt has become a problem for you and your family, you should become proactive about fixing the problems. However, you need to start by pausing, taking a big breath and relaxing. Many times, your level of anxiety and nervousness are disproportionate to the actual seriousness of your situation. Also, you will be better equipped to find solutions with a clear mind. Above all, you need to be aware that help exists and there are viable options for eliminating debt and reestablishing financial stability.

If talking and thinking about your debt makes you nervous, it might be a good time to consult with a professional debt counselor. At Rescue One Financial, our counselors have helped many clients who felt overwhelmed by debt, but soon found themselves back on the road to peace in their financial lives.

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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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