Rescue Capital Blog Your Money, Your Way

4Jun/13Off

The value of money in your hands today

Posted by Rescue Capital

There are a bunch of reason why someone would want to have cash in their hands now instead of some future date.  Most people  know that $100 today does not equal $100 years from now.  If it being invested somehow and collecting interest then it may turn into much more years later. In some cases though, your money can more valuable today than it will be in the future. This very  important to understand if you own an annuity or structured settlement today.

Rescue Capital can help you get cash nowWhat your money is worth today is known as the present value. In order to have an equal amount of money in future years as you have today, you have to consider interest rates and inflation rates. These rates or yields change with time. These rates will impact the value of your money either today or in the future as well as what is known as the purchasing power of your money. Purchasing power of a dollar is the amount of goods and services that can be purchased with one dollar. Think about how much value you used to be able to get with one dollar versus what you can get today. Many of us remember when gas was $1.50  a gallon. Over time you need more money to get the same goods. This is an example of why one would need more money in the future to have the same purchasing power today.

By having the cash of  your future payments in your hands  today, you  may lose possible future value but you have an opportunity to use it now where it may be  helpful for your well being.  The result is you will have a lump sum of cash at its present value. One advantage of having a lump sum of present value cash is the purchasing power it holds today. Among many other advantages of having a lump sum of cash, it can be invested differently to earn higher returns than being locked into an annuity for example. You could invest in a business that gets a higher return on your investment than the level it would get in an investment. You may buy a home where, instead of paying rent every month, the money you spend living there builds equity overtime and  the value of the home will increase over that time. You may purchase a car where now you can get a better job, make much more money over time than you would if you had to take the bus or  the subway.

The equivalent value of money for either present values or future values is simply determined by a mathematical equation. The equation takes into consideration interest rates over time and the time period between present and future. Call us today at 866-688-3532 and we can discuss what options are available for you. If you prefer, you can just fill out an online quote request here and we can get back to you when you have more time.



31May/13Off

You are not just a number to us

Posted by Rescue Capital

There are many companies that offer similar services as us. We are not the only guys out there who can turn your future structured settlement payments into a lump sum of cash. There are hundreds, possibly thousands of companies that claim they can do it. More importantly though, please do not be misled that we are all the same. The process of picking the right company is a very important decision that should not be taken lightly.

You will find some structured settlement companies that spend millions of dollars each week on TV, radio and internet ads enticing at rescue capital you are not just a numberyou to call them. Some of them just see you as a number among hundreds of calls they will get this week. They see you on the other end of the phone as just another opportunity to make a buck. You are just one more sale to get that big bonus. You are just one more deal to help pay for that trip to Hawaii. Some will not have your best interests in mind when they try to talk you into doing things you don’t want to do in their quest for the almighty dollar.

At Rescue Capital, we see things much differently than many of the others. We know that you need a lump sum of cash for a very good reason. You may need money for medical bills for yourself or someone you love. You may need us to help you secure capital to quit renting and move into a home you can call your own in a good, safe neighborhood. You may want to further your education and go to college or a trade school. You may need us to help you get money so you can get a reliable car to get you to and from work. It might even be possible that you need our help because you need money to start a new business, become your own boss and leave the time clock behind you. There are many valid reasons you may need us. It is not about us. We remember that every time we talk to someone. We never forget that you are our top priority. We genuinely care and strive to earn your trust every day.

Call us today and let us see if we can help you 866-688-3532 or request a quote online HERE

 



21Jun/12Off

Bad credit not relevant with structured settlements

Posted by Dawn Anderson

When you’re suffering financially, waiting for payouts from a structured settlement annuity isn’t the most convenient way to get bad credit ok at Rescue Capitalmoney.  Clearly it would help if you can have access to your money sooner perhaps in a lump sum payment. Maybe you thought about looking into it before but delayed calling because you have bad credit and were afraid you wouldn’t be approved. The good news is that selling your future payments allows you to get the cash you need without borrowing money. It is not a loan it is a transfer of the legal rights to your future payments. So there is no money to pay back or credit approval.

The only way to improve your credit is to pay off your debt and selling your structured settlement could be the key to financial stability. Use the cash lump sum to pay off your credit cards or avoid foreclosure and invest the remaining funds to start earning interest for you. It is time to take control of your finances and reap the benefits of your money.

Working with Rescue Capital to sell your structured settlement for a lump sum has some benefits too. We can custom tailor the package to suit to your needs and goals. They can help you develop a plan to pay off your debts and work with your creditors to pay off the debts immediately. We’re also here to answer your questions without delay. Remember, the money is legally your property so why not use it to suit your needs.

You don’t have to sell you entire settlement. You can sell only part of your settlement, keeping some of your scheduled payments and have an influx of cash for your immediate needs. Cashing out your structured settlements can give you more financial freedom which is something everyone can use.

Don’t delay getting the facts about your financial situation. Call Rescue Capital today to discuss your situation and make your structured settlement to work for you. Call 866.688.3532 for your free no-obligation quote.



13Jun/12Off

Payday loans: Unfortunate trap or necessary evil

Posted by Dawn Anderson

Rescue Capital can save for having to rely on payday loansOnce again payday loans are a trending news topic. Just in the past five days, Pennsylvania and Delaware have introduced legislation to regulate the practice while payday loans from banks are now part of a FDIC probe. Two tribal nations in Oklahoma were cited in a FTC complaint and payday loan lead generation website MoneyMutual.com has also come into fire for its auctioning practices. While some groups and individuals feel that there is a need for these types of businesses, there is a need to protect consumers from themselves as well as predatory, deceptive or fraudulent lenders.

Pennsylvania

The PA house voted to approve an industry backed bill to regulate short-term lending. The bill, which hasn’t been approved by the PA State Senate, would require short-term lenders to obtain state licenses and limit borrowers to a 25% max of their gross monthly income or $1,000, whichever is less. Lenders could charge only 12.5% interest plus a $5 fee for each loan. For example, a $300 loan would cost $42.50 if it was repaid at the end of two weeks. However, consumer groups argue that the interest and fees would equal to 369% when calculated as an APR. PA currently has a maximum APR of 24% that can be charged by licensed lenders. [i]

One short-term lender stated that a 24% APR on a $100 loan is not economically feasible because only $.92 cents would be generated by the end of 2 weeks. If one person defaults, it requires 108 successful loans to recover the lost principal.[ii]

Delaware

State lawmakers in Delaware have taken a different approach. Under House Bill 289, borrowers would be limited to 5 payday loans in any 12 month period including loan rollovers and refinancing. In addition, they could only borrow $1,000 or less and the state would establish a database to track the number of loans a person has taken. The Bill was established in order to prevent the number of defaults within the state. Currently there are 70 licenses lenders with approximately 200 locations throughout the state. The bill is waiting for the signature of Gov. Jack Markell.[iii]

Detractors of both bills believe that these restrictions will force individuals to go out of state or online where there are fewer restrictions. Currently 13 states prohibit payday loans, while another 21 state prohibit rollovers. Only 13 states have statewide databases that track these short-term loans.[iv]

Bank Payday Loans

In response to a February petition signed by consumer rights advocates, the FDIC announced it will investigate payday loans from banks. According to the petition, several banks including Wells Fargo were called out for their lending practices. In addition, the petition cites Fiserv’s lending software, which promises to increase fee income, as a contributor to the problem.

Oklahoma

The Federal Trade Commission (FTC) complaint states that two American Indian tribes in Oklahoma are allegedly operation payday loan companies that add hidden fees, violate lending laws and threaten customers will false arrest for defaulting. In the complaint, the tribes are citing tribal immunity but the FTC states that tribal affiliation does not exempt them from federal law, in this case the Truth in Lending Act.  On a $300 loan borrowers were told they would pay $90 in interest. But the lender automatically renewed the loan at the end of two weeks resulting in fees of $975. The FTC stated that they have received 7,500 complaints about the defendants over the past 5 years.[v]

MoneyMutual.com

You may have seen their commercials on TV featuring former talk show host Montel Williams as their pitchman, but Money Mutual isn’t actually a lender. They are a lead generation website that auctions off prospects’ information to the highest bidder. Sometimes it is a legitimate lender but other times it could be a fraudster who has enough information to make unauthorized withdrawals from unsuspecting consumers’ accounts. While the company claims to take “extraordinary” steps to protect their information, others might disagree. The Director of the Consumer Financial Protection Bureau is reviewing how the sites treat data and the FTC has received numerous consumer complaints about the firm.[vi]

The parent company of Money Mutual doesn’t believe that government regulation of the industry is necessary because the industry is policing itself. Consumer advocates believe that it is a huge risk to consumers. In one case, information collected by an unnamed lead generation website was used by call centers in India to badger consumers into paying debts they didn’t owe.[vii]

Thoughts and considerations

Payday loans are a tricky business. Some individuals believe that people without access to traditional forms of credit have a legitimate need for these services. Consumer advocates believe these types of products prey on the poor and cause them to become deeper in debt. The industry believes it doesn’t need government regulation but at the same time current regulation has caused individuals to seek riskier internet based alternatives. So in those instances is the regulation really helping?

One of the biggest issues is the lack of authority over the tribal nations; the government needs to get that issue under control. But there needs to be a balance. Obviously states will have a hard time finding legitimate lenders if the interest rate caps are so low that the lenders won’t make money. Consumers need access to cash in a hurry but they also need to some sort of regulation that will prevent them from financial disaster. While it is difficult to regulate the Internet, there needs to be a way of protecting users from fraud and harassment.

If you look at other industries such as structured settlement factoring, government regulation has helped the consumer. While not logistically possible for payday loans, each structured settlement factoring transaction requires court approval to determine if the sale is in the best interest of the seller. Perhaps a nationwide database used by lenders to limit the number of transactions an individual could take in a 12-month period we could prevent some issues. A cap in the loan amount could also help. There also needs to be uniform laws nationwide regarding this type of lending that applies to online as well as offline lenders.

Sources:

[i] http://www.cbsnews.com/8301-505245_162-57448930/pa-house-approves-payday-lending-bill/

[ii] http://www.cbsnews.com/8301-505245_162-57448930/pa-house-approves-payday-lending-bill/

[iii] http://www.newsworks.org/index.php?option=com_flexicontent&view=items&id=39697:delaware-payday-loan-bill-heads-to-governors-desk

[iv] http://www.newsworks.org/index.php?option=com_flexicontent&view=items&id=39697:delaware-payday-loan-bill-heads-to-governors-desk

[v] http://www.loansafe.org/two-oklahoma-tribes-payday-loan-operations-cited-in-ftc-complaint

[vi] http://www.businessweek.com/news/2012-06-08/data-from-payday-loan-applicants-sold-in-online-auctions#p2

[vii] http://www.businessweek.com/news/2012-06-08/data-from-payday-loan-applicants-sold-in-online-auctions#p2