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. Of course you can always decide to obtain a consolidation loan to work alongside the debt resolution program. Many people have found that simply paying for their debt resolution with a monthly payment into their resolution savings account is the best option, while others prefer to speed up the pay off process with a lump sum. The decision is up to you.
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 has had years of experience dealing with creditors and overtime we have built relationships that help us negotiate your debt down to a fraction of what you owe.
Rescue One Financial debt resolution consultants 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. Learn how Rescue One Financial can help you resolve your debt.
Can creditors garnish my wages?
Yes. Even if you are in a debt resolution program, your creditors are able to garnish your wages. However, this can sometimes be a long process for creditors. First, the creditor must sue you, obtain a successful judgment, and then file for a garnishment action. When a person is working with a creditor to resolve their debt, wage garnishments can sometimes be avoided. At Rescue One Financial, we negotiate with each creditor as part of your debt resolution program.
Will the debt resolution program repair my credit?
No, Rescue One Financial does not provide credit repair services. Our goal is to resolve your delinquent accounts. Once you’ve done that, speak to our Financial Consultants for advice about how to best repair your credit.
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 debt resolution affect my credit?
The purpose of debt resolution is to get you out of debt at a substantial settlement, not to improve your credit. There are many factors that need to be considered when assessing credit worthiness, including your total amount of debt, payment history, available credit, number of creditors, etc. For more information on how your credit score is determined visit www.myfico.com.
Is bankruptcy a better option for me?
Debt resolution does not guarantee that you are safe from bankruptcy now or in the future. It is strongly recommended that anyone considering the Rescue One Financial debt resolution program also seek advice from a bankruptcy attorney.
Who is eligible to enroll in the debt resolution program?
If you are currently meeting your monthly debt obligations and are able to continue to do so, then our debt resolution program is NOT for you.
Rescue One Financial debt resolution program is a hardship program. This program is only for people who:
Have a financial hardship
Are late paying their unsecured debts
Have no ability to make payments in the future
Bankruptcy is the only other option
Examples of qualifying hardships are loss of income, medical emergency, death of a member of the household who provided financial assistance, or a divorce
How will Rescue One Financial resolve my debts?
Our Financial Consultants 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 Trust Account for you (set up for you when you enter into our program)
– Advise you on a recommended savings level for the Trust Account
– Advise you on how to build enough savings in the Trust 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 Trust 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 within 24 hours for a complimentary introductory consultation. 1-855-737-2831.
Have a question?
We are here to help.
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