The average debt resolution program lasts 2-4 years. The speed at which you complete the program depends entirely on how much money you apply to your program. You can only pay off debt when you have the money to do so, which makes it essential that you build up your resolution account fund as fast as you can. Missing payments to your debt resolution program will hinder the negotiation process because there will be less funds to negotiate with. The more money you add to your account, the quicker your debts will be resolved.
Do I need to take out a loan to pay off all my debt?
No. Our debt relief plan is not a consolidation loan. Many people have found that simply paying for their debt resolution with one affordable monthly payment is the best option.
What are the tax consequences?
You can expect creditors to report debts – either cancelled or resolved – to the Internal Revenue Service (IRS) if the amount exceeds $600. You are required to report this amount to the IRS in your tax return. However, the IRS will permit you to write off income from your cancelled debts up to the amount by which you were insolvent during that tax period. It is recommended that you consult your tax advisor in order to analyze your specific tax circumstances.
Can I negotiate with my creditors on my own?
Yes, you can. However, know that the debt resolution process is complex and can be time consuming. Most debt-ridden consumers greatly benefit from enlisting the help of experienced debt resolution professionals. Rescue One Financial, alongside our debt servicing partner, have over a decade of experience working with creditors. We have built relationships that help us negotiate your debt down to a fraction of what you owe.
Rescue One Financial debt specialists have the experience necessary to negotiate with creditors on your behalf and successfully obtain reasonable and fair debt resolutions. With the comprehensive, professional debt resolution services available at Rescue One Financial, there’s no need for you to waste time and effort trying to self-negotiate with your creditor for a sufficient debt resolution. Rest assured, your concerns are our concerns. Our knowledge, experience and debt servicing partner, puts us in a strong position to stand up to your credits and fight for the best settlement possible. Learn how Rescue One Financial can help you resolve your debt.
Could a debt relief plan protect my wages from garnishment?
Creditors are often able to garnish wages in the interest of collecting outstanding debt. That doesn’t mean that they’re eager to do so, however.
Wage garnishment is rarely ideal for creditors, as it involves a lengthy process that includes suing, securing judgments, and filing for garnishment action. As such, many creditors are happy to cooperate with debt relief plans if avoiding the time-consuming process of garnishing wages. If you’re worried about suffering garnishment, debt relief could be your best option for protecting your income.
Will the debt resolution program repair my credit?
Letting your enrolled accounts go past due means it’s likely you’ll get creditor calls, and your creditworthiness will be negatively impacted. However, the credit impact is not permanent because each time one your accounts is resolved, the creditor should report it to the credit rating agencies, which could help improve your credit profile over the long term.
Will the calls from my creditors stop coming?
No, Rescue One Financial cannot stop your creditors from contacting you. However there are laws enacted to help with harassment by third by collection agencies. It is important to remember that all collections agencies must adhere to principals laid out by the Fair Debt Collection Practices Act.
Can I be sued?
Yes. Your creditors have the right to sue you to recover their funds. However, lawsuits are usually meant to force a resolution of the debt. It is our experience that most creditors would rather negotiate a resolution than go to court. When you participate in the Rescue One Financial debt resolution program, you will have experienced debt resolution consultants on your side.
Can I still use my credit cards?
No. Financially challenged consumers who participate in the Rescue One Financial debt resolution program can no longer use credit cards. All credit cards that have been included in the program will not be active.
In addition, any credit cards that are not entered into the program should not be used. When implementing your debt resolution program, our consultant’s primary concern is getting you out of debt. Until this process is complete, credit card use will only compound your debt problem.
How will a debt relief plan impact my credit?
It’s only natural to worry about the credit implications of any solution you take on for your debt problem. That being said, the primary goal of debt relief does not involve fixing your credit score but rather addressing large amounts of debt that, without a swift solution, could quickly spiral out of control. Debt resolution’s impact on debt can vary dramatically based on the amount owed, the number of creditors, and your payment history. These are just a few of several factors that can come into play. Before you move forward with debt resolution, weigh your need for financial relief against potential changes to your credit. Keep in mind that, while debt relief can affect your score, the same can be said of bankruptcy, which is often the only other realistic solution available to people who are seriously considering debt resolution. What’s more, many people who seek debt resolution see their credit scores rise rapidly after they complete their respective relief programs.
Who is eligible for debt relief?
Debt relief can provide an excellent solution for many people, but it’s by no means ideal in every situation. In general, debt resolution plans are intended for people who suffer significant financial hardship, making it all but impossible for them to submit required payments on time. Common examples of hardship leading to debt relief include medical emergencies, loss of income, and divorce. Often, bankruptcy represents the only other way out. If debt feels annoying but manageable, settlement may not be the proper approach.
How will Rescue One Financial resolve my debts?
Our Debt Servicing Partner will carefully analyze your financial situation and work with you to determine a monthly amount that is in line with your total debt, income, and expenses. If you qualify, Rescue One Financial will:
– Establish a Special Purpose Account for you (set up for you when you enter into our program)
– Advise you on a recommended savings level for the Special Purpose Account
– Advise you on how to build enough savings in the Special Purpose Account that will allow us to negotiate a resolution with one of your account creditors
-Usually, starting with the smallest balance, then work up
Once your Special Purpose Account has enough funds saved, Rescue One Financial will:
Reach out to your creditors and begin the debt negotiation process
Once your debt resolution is reached with your creditor, Rescue One Financial will:
– Present you with the offer
-Thoroughly discuss it with you
If you approve the resolution offer, we will have your creditor send the agreement to Rescue One Financial and you in writing.
How do I apply?
Contact the Rescue One Financial team of debt resolution professionals to learn if you meet the criteria to participate in our program. Our experienced debt resolution consultants will review your application and information and contact you for a complimentary introductory consultation. 1-855-737-2831.
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