Debt Management

Juggling heavy, unsecured debt with high interest rates and looking to get your financial situation under control? Rescue One Financial can assess your situation and see if debt management is right for you.

Debt management is a tailored repayment program designed by a third-party finance management professional to help consumers, buried by unsecured debt and high interest rates, pay off that debt.

A debt management plan is a hardship program that benefits consumers meeting specific criteria. It is not for everyone. Qualifying consumers must adhere to a strict set of requirements that will be outlined and explained by the finance management professional.

What is unsecured debt? Unsecured debt is unpaid debt in the form of:

  • Credit cards
  • Charge cards
  • Lines of credit
  • Unsecured personal loans
  • Debt that is not tied to an asset, such as a house or vehicle.

Debt Management vs. Debt Resolution Plans – there is a difference.

  • Debt management is a program for consumers struggling with unsecured debt and financial hardships. Not everyone qualifies for this program. It is for consumers who need help when simple budgeting actions fail to help them pay off unsecured debt.
  • Debt management allows third-party finance professionals to negotiate with your creditors on your behalf in an attempt to reduce the interest rates and late fees on your outstanding bills. If successful, a debt management plan can help you solve your financial problems and teach you how to budget and self-manage your finances in the future, after you get out of unsecured debt.
  • Debt resolution—*Helps consumers strapped with unsecured debt reduce their outstanding debt balance by as much as 60 percent of what is owed.
  • Debt resolution gives you the opportunity to get out of debt quickly, without filing for bankruptcy. It does not teach you how to budget or manage finances in the future.

Understanding debt management

When a debt-plagued consumer is qualified to enter the Rescue One Financial debt management program, one of our finance management professionals will work with both you and your creditors in an attempt to meet an agreement that helps get your heavy debt paid while simplifying the repayment of your unsecured debt obligations.

Once enrolled into our debt management program, we work to consolidate your payments and disperse them on time to your creditors on your behalf.

*Please note:* This is a hardship program for which not everyone is eligible. Those eligible to participate benefit by becoming debt-free in 3 to 5 years. They make the same payment each month, on time, at a reduced interest rate set by the creditors. This does not guarantee that your monthly payment will be lower or at a reduced interest rate. Not all creditors will reduce their interest rates.

An overview of How it Works

A debt management plan involves a series of requirements that the consumer must follow:

  • List all your creditors to whom you owe unsecured debt, and the amounts owed to each
  • Secured debt—vehicle loans, home mortgages, student loans — are not eligible
  • $5,000 current unsecured debt minimum and it must offer benefits (i.e., reduced interest rates, old utility bills, debt not in collections)
  • $3000 current unsecured debt minimum accepted for consumers with exceptionally high interest rates and benefits
  • Accounts must be less than 60-days delinquent when you enroll
  • Accounts past 60 days must be set up for creditor payment within 30 days of enrollment date
  • Historically, accounts past 60 days have a high chance of going to collections, offer no benefits to a debt management plan, and are usually rejected from the program
  • All credit card accounts and personal, unsecured loans must be ‘mature’, meaning, open for a minimum of 9 months before a proposal requesting benefits can be sent to creditors
  • Rescue One Financial can act as paying agent on young accounts, until the account is mature enough for the proposal
  • There must be no activity for the past 60 days on all credit accounts in the program, or the proposal for that creditor will be rejected
  • Interest rates must be above 18%
  • Interest rates as low as 15% have been accepted, but none lower
  • Consumer must be able to make minimum payments on all cards
  • Program stipulations and key verification

This is a debt relief and consolidation program. This program is not designed to allow consumers to acquire new unsecured debt while paying off old unsecured debt.

All accounts put into your debt management plan will be closed by your creditors. If you hold more than one credit account with the same creditor, all accounts must be put into your debt mortgage plan and will be closed. You may keep 1 major credit card (Visa, MasterCard, Discover, or American Express) for “Livelihood” (work-related) emergencies only from a creditor that is not in your debt management plan. Refrain from opening new lines of credit or financing for up to 24 months while participating in the program. Current accounts enrolled in your debt management plan must be kept current until Rescue One Financial receives the first full creditor payment, otherwise you will receive late fees, phone calls, and letters, until all negotiations with all of your creditors are finalized.

FICO scores are not affected by your debt management plan
Your creditors do retain the right to state that you are in a debt management plan on your credit report. Upon successful completion, creditors may report your plan is completed or remove footnote. Monthly administrative fees vary from state to state; the amount is dictated by the laws of your state and is built into your monthly payment.

We Have an
Equitable Plan for You.

unsecured debt

Call for immediate assistance and speak to an experience financial counselor.