Responsible Debt Relief

Mission Statement

Responsible Debt Relief Institute is a 501 (c)(6) non-profit organization whose mission is to promote the revolutionary RDR algorithmic software and related programs. For financially distressed families, RDR guides consumer and creditors to the most practical financial solutions based on an objective and statistically precise grading system.

CONSUMER DEBT RELIEF PROGRAMS

Responsible Debt Relief (RDR) Institute offers a FREE RDR Debt Assessment to those individuals and families who are facing financial hardship. We provide guidance and support to direct consumers into the most appropriate debt resolution program based on specific needs.
RDR does not handle the servicing of the debt programs. Rather, our carefully chosen affiliates administer the debt relief programs, such as:

(A) Debt Management Plan (administered by Consumer Credit Counseling Service Providers)
(B) Responsible Choice Plan (administered by RDR certified Partial Payment Providers)
(C) Bankruptcy (least preferred option, but if your ability to repay creditors is very minimal, then bankruptcy may be your only option)

Consumer Credit Counseling –according to your RDR score you have the ability to repay your creditors in full and maintain a good credit rating. This service will help you lower your interest rates, organize your bills, give you helpful advice on making payments, and potentially enroll you in a Debt Management Plan.

What is a Debt Management Plan?

A Debt Management Program (DMP) enables you to consolidate your debt payments into one manageable monthly amount. The Consumer Credit Counseling Service provider will work with your creditors to lower your interest rates and put together a plan to pay down your debts in a much shorter period of time than you are now facing. The credit counselor reviews your financial information and then works with your creditors to arrange reduced monthly payments, interest charges and fees for your unsecured debt. You make a single monthly payment to CCCS and those funds are then disbursed to all creditors on a monthly basis. This plan is ideal for an individual or household that has multiple credit cards (typically 3 or more) with debts above $10,000, and has sufficient income to repay 100% of their debts plus interest.

Here is a list of links that have additional information on Consumer Credit Counseling
National Foundation of Consumer Counseling: http://www.nfcc.org/
Federal Trade Commission:
Choosing a Credit Counselor: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm
A must-do list for a DMP: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre38.shtm

"Responsible Choice" Plan – if your score indicates that you can repay some, but not all of your bills, then one of our registered partial payment providers can help you repay a portion of the money you owe by contacting your creditors. They will handle all the paperwork necessary to help you maintain a good credit rating.
What is the partial payment Responsible Choice Plan?

RDR Partial Payment: The “Responsible Choice” plan is a three-year, 36-month debt repayment plan that is based on the RDR client assessment and features pro-rata payments to all creditors included in the "Responsible Choice" plan. Consumers must verify income and submit a signed affidavit that affirms the accuracy of their financial situation. All monthly payments are directly sent by clients to their creditors and all program management expenses are paid to the plan administrator by the client. Only debt resolution companies that adhere to the RDR "best practices" code of conduct are affiliated with the RDR system. This plan is ideal for an individual or household that has multiple credit cards (typically 3 or more) with debts above $10,000, and does NOT have sufficient income to qualify for a Debt Mgmt. Plan (This program is for those consumers who are bankruptcy eligible, but want to evade the effects of bankruptcy by repaying debt to their highest ability)

Bankruptcy – If your score indicates that you cannot in all likelihood repay your creditors you will be advised to seek legal counsel from a bankruptcy attorney.
What is bankruptcy?
Personal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far reaching. People who follow the bankruptcy rules receive a discharge — a court order that says they don't have to repay certain debts. However, bankruptcy information (both the date of your filing and the later date of discharge) stay on your credit report for 10 years, and can make it difficult to obtain credit, buy a home, get life insurance, or sometimes get a job. Still, bankruptcy is a legal procedure that offers a fresh start for people who have gotten into financial difficulty and can't satisfy their debts.
For more information about bankruptcy, click this link for information from the Federal Trade Commission: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre19.shtm

:Why Responsible Debt Relief is NOT a Debt Settlement Program?

1. Patent-pending RDR algorithm provides an arithmetic estimate of consumer debt capacity that identifies the most appropriate debt resolution plan: full, partial, bankruptcy.
2. In 2008, RDR assessments recommended about 35% to CCCSs, 45% to partial payment, and 20% to bankruptcy. Consumers that can repay at least 70% of their unsecured debts are referred to CCCS programs.
3. Responsible Debt Relief includes national and local Consumer Credit Counseling Companies (CCCSs) that offers the only full- and partial-payment coordinated system.
4. RDR actively promotes rather than restricts communication between consumers and creditors. Clients are actively counseled NOT to extend their account delinquencies to charge-off status.
5. Responsible Debt Relief calculates the percentage of outstanding household debt that can be repaid in a specified partial payment plan. The agreed repayment plan offers creditors a net payment that ranges from 15%-90% over 3 years.
6. Client repayment plans are based on household financial capability rather than higher amounts that are proposed to creditors in order to earn settlement fees. Similarly, consumers that can afford over 70% repayment plans are referred to CCCS programs.
7. All creditors are treated equally with pro rata monthly payments in the Responsible Debt Relief program. In contrast, Debt Settlement programs only execute sequential, single settlement payments (typically 40%-50% of outstanding balance) to creditors after the consumers’ debts have been “charged-off.”
8. RDR clients’ payments to creditors are NOT escrowed by partial payment service providers (Responsible Choice Plan). Instead, consumers authorize electronic payments directly to creditors from their checking or savings accounts.
9. RDR does not promote the partial-payment Responsible Choice Plan through aggressive mass marketing campaigns which reduces client participation fees. Instead, consumers are referred to partial payment providers based on RDR financial assessments.
10. Initial income and expense verification documentation fees are modest and, unlike traditional Debt Settlement plans, are submitted to ALL participating creditors. Clients can request program fee reimbursement if they decide not to continue in the Responsible Choice Plan due to lack of creditor agreements.
11. The RDR debt concession programs may qualify unsecured creditors to reduce the mandated write-down of their consumer debt portfolios as well as increase their loan loss reserves as required by banking regulators.