Debt Negotiation Frequently Asked Questions

How does your program work?
What are the fees to join?
Is my credit report affected in any way?
Will I still receive harassing phone calls?
How does this compare to consumer credit counseling services?




Q. Will I have to take out another loan, to cover my current debts? Top
NO! Our program is not a traditional "consolidation" program. Instead, we actually negotiate with your existing creditors, to reduce your debt with them. For clients with high debt to income ratio and thus a lower credit score, this is the best solution. You probably would not qualify for most consolidation loans and a loan will just put you deeper and deeper into debt. Our program is not a conventional way to meet your debt obligations but is a responsible way to pay off lingering debts.



Q. Will I be totally debt-free when I'm done? Top
Our program will clear your unsecured debt when you are through. However, we cannot help you with secured debt that you may have incurred. If you follow all the necessary steps of our program, you can expect to be debt-free with all contracted accounts at the conclusion of your program.



Q. Who controls the savings fund allocation to creditors? Top
We do, as the account is maintained and set up by us in our own bank. You will need to discipline yourself to pay the required funds in a timely manner into this account during each month of the program. This amount will be far less than your total monthly minimum payments on your credit cards, allowing you more cash for other things. Once you have achieved the dollar amount needed to settle an outstanding balance of a given account, we will notify you when we begin the settlement negotiation process. Once the settlement of the account is negotiated, you will receive a letter from the account holder indicating the dollar amount needed to settle your balance. We use the funds from your savings account to send them a certified check for the payment. Further instructions will be provided upon entering the program.



Q. Can I shorten the scheduled time frame for the settlement of my accounts? Top
Yes, the pace of the settlement is based on the availability of the funds needed to settle. If you receive additional funds from other income sources, you can use them to settle your debts over a shorter timeframe. It is to your advantage to do so. You can also shorten your time in the program by disciplining yourself to add more money to your monthly savings.



Q. How is the service fee paid? Top
We have a one time non-refundable setup fee of $125-00 and a $29.95 monthly maintenance fee which is included in your monthly payments. We sometimes, depending with the Creditor, get a 15% fair share, after settlement.



Q. Who will have access to the information I give you? Top
All information is held strictly confidential. Only the RDX specialists who personally manage your account will have access to your personal information. Your information will never be given to a third party company without your written authorization.



Q. Is my Credit affected in any way? Top
This depends to some extent on the state of your credit at this time. If your credit is current and you have no history of late payments, then your credit may experience an adverse effect. Our program, explains how you challenge any credit notation previously associated with your now settled and paid accounts. Your settlement letter reflecting a zero balance & the cancelled check as documentation, allows you the opportunity to challenge and remove adverse notations from your credit history, because they do not reflect the current status of the account. The positive effect on your credit is you will have low debt to income ratio, which is a major key to good credit, since it is a major portion of your credit score. Experience has shown that once you take care of the significant amount of unsecured debt, your credit will take care of itself. It is our goal to get you debt free.



Q. Should I put all my credit cards in the program? Top
The best solution would be to put most of your credit cards in the program, and maybe keep one or two just for a rainy day.



Q. Compared to Attorneys how much more expensive is this? Top
Our fees only consist of the initial $125.00 setup fees and the $29.95 monthly service fees included in your monthly payments. Again, depending with the Creditor, we sometimes get paid a 15% fair share, and this does not happen often. There are no other hidden fees. The monthly cost quote for the program you receive will contain our fee, as well as your monthly saving allocation you set aside. We do not collect nor hold any portion of the saving funds used for settlement. In fact, if we settle an account for less than the projected allocation, say 30% instead of 40% of the balance, you retain the difference in your savings, thereby lowering the total overall cost to you on the program. Once you have considered the amount of money we can save you by lowering your debt and interest charges, we feel sure you will find us quite affordable.



Q. Could I negotiate on my own? Top
In order to obtain the long-term interest rate concessions, minimum payment reductions and other concessions, you need to use a company with a non-profit negotiation team. We Rapid DebtX Inc. are that team to help you with your debt consolidation and debt settlement programs. Our team has over 10 years of experience working with creditors and clients with a customer service second to none.



Q. How does your program work? Top
In your initial, free consultation, your Debt Consultant will see if the debt management or the debt settlement program will best solve your needs. We contact each creditor on your behalf and make arrangements for them to accept reduced monthly payments. Your creditors are asked to stop all collection activity and to deal directly with us. In some cases, creditors will stop or reduce finance charges to our clients. Payment to your creditors is handled through us. Each month, you pay a specified amount, which is deposited into a Escrow Account and distributed to each of your creditors until all of your debts have been paid.



Q. What are the fees to join? Top
There is an initial $125.00 one time non-refundable administration fee/contribution and a $29.95 monthly contribution to cover account maintenance, processing, and the monthly mailing of statements. Now, the consultation and custom plan is a free community service to you.



Q. Is my credit report be affected in any way? Top
Rapid DebtX Inc. does not report any of your information to the credit bureaus. This responsibility lies with your creditors, and most companies have favorable credit reporting policies. If you are currently behind on your payments, you have probably already been reported as late. Once on a debt management program, many companies will re-age your account within 90 days, meaning they will report your account as current on your credit report. Many companies will also report your participation in a debt management program. Showing that you are working through a credit counseling service. This may show future creditors that you needed help but wanted to pay off your debts in full.



Q. Will I still receive harassing phone calls? Top
Rapid DebtX Inc. serves as the contact for creditors and provides you with instructions on what to say in the interim time that your account is being established with creditors.



Q. How does this compare to consumer credit counseling services? Top
Most consumer counseling services only provide debt management plans. By providing both debt settlement and debt consolidation plans, We can evaluate your situation and select the option that is best for you. Additionally, studies show that over 60% of people who start a debt management plans drop off before completing the plan. In many cases, we can migrate a client who is unable to make the new payment on the debt management plan to a debt settlement plan where he/she can eliminate the debt for a lower monthly payment. With these added benefits, you are assured to reach your goal of debt freedom without filing for bankruptcy.