Have you heard of rescue one? I have $85k in cc debt this is what they offered me:
Underwriting has confirmed you are approved and qualified for a non-credit based consolidation option. This consolidation reduced repayment option complies 100% with the strict rules dictated by the Federal Trade Commission (FTC) and is endorsed by the American Fair Credit Council. As of the most recent quarterly reporting, there are over $7.3 Billion in consumer debt currently under management with over 710,000 consumers assisted.
This plan consolidates debts into one much more affordable monthly payment and upon resolution of an account all future interest is eliminated entirely. Once debts are reduced and the compounding interest is eliminated, debts can be paid off in an average of 3.5 years (versus 30+ years under the clients existing terms).
Most importantly, this program helps consumers avoid the long-term catastrophic effects of more extreme consolidation options such as Consumer Credit Counseling Services and/or Chapter 7 or 13 Bankruptcy filings. The program itself is NOT reported to credit bureaus so all reporting will show you paid the debts and not a 3rd party.
As outstanding balances are paid down and the utilization rate decreases on the client’s credit report, the FICO score and the client’s credit worthiness rapidly improve so that traditional lending is more attainable in the near future.
See attachment for a graphical description of the “numbers”, is this a good option? thanks
Well, I have heard about Rescue One Financial. You might want to click here.
So it sounds like they’ve offered you some sort of debt settlement approach. But the rest of the highlights they sent to you seem incomplete.
If you are in a debt settlement program, typically you will default on the accounts prior to settlement. The negative payment history will be reported to the credit bureaus and can remain for 7.5 years. Once you default you will be at risk of being sued. If you are not insolvent when the debt is settled, you may have to pay income tax on the forgiven debt.
Oh, and the part of the debt that is settled can be reported as a bad debt on your credit report as well.
So if I go just by your description of the program it sounds like what you heard was a program that would eliminate a substantial amount of interest over 3.5 years with no credit, tax, or credit report consequences.
You also said the program you were told about would “avoid the long-term catastrophic effects of more extreme consolidation options such as Consumer Credit Counseling Services and/or Chapter 7 or 13 Bankruptcy filings”
That statement sounds like something a salesperson would say.
Much is missing from the scenario you gave. Feel free to post your answers in the comments section below.
1. Are you having problems making ends meet and that is why you are looking for debt help?
2. If you could eliminate all of your unsecured debt in three months for less than $2,000 with no tax or legal liability and get back to saving money, does that make sense?
3. Have you looked into the other solutions like credit counseling and bankruptcy and talk to say a bankruptcy attorney who is licensed in your state? If not you can find a good local bankruptcy attorney and have a free discussion about what bankruptcy would mean for you. Bankruptcy is the fastest way to get a fresh start for the least amount of money.
4. I would suggest you talk to a credit counseling organization as well. Credit counseling has a place for people who want to dramatically reduce their interest rates, maintain good credit, and can afford the regular monthly payment.
5. Have you given any consideration to the massive amount of retirement savings you can lose by spending years repaying the problem debt? You should use my online calculator here.
My advice at this point is for you to go and gather more information by investigating all your debt relief options and then use all of the facts to make a decision that is best for you.
If you want to compare different options, you can use my online get out of debt calculator.
Let me know what you decide to do by posting an update in the comments.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Do you have a question you'd like to ask me for free? Go ahead and click here.
- Plastic Pandemic: US Credit Card Debt Surges Nearly 20% in Q1 2021! - May 12, 2023
- The IRS Resumes Collections Notices: What You Need to Know Before It’s Too Late - May 12, 2023
- How Can I Deal With Payday Loan Debt? - May 12, 2023
2 thoughts on “Have You Heard of Rescue One? LOL”