Latest Posts
Home > Ask The Get Out of Debt Experts > Should I Go With Fast Track Debt Relief? I’m Scared. – Crystal

Should I Go With Fast Track Debt Relief? I’m Scared. – Crystal

“Dear Steve,

My name is Crystal. I accidentally find your website, and feel it offer very helpful information about debts. I have five credit cards, Chase-19%, Macy’s Visa and Revolving-24.50%, two American Express were 12.24% and 16.24%. I am been paying for three years, but interests get higher and higher each year. After three years, my balances still the same. I was trying to pay more than minimum which about $700-$1,000 totally each month. However, this left me no cash for rest of month.

Macy’s is behind the payment for three months now. I tried to talk to my creditors for better advise and low interest. American Express dropped 1% interest rate. Chase didn’t give me any chance to talk to them and Macy’s give option to close the account.

I calculated all the debt. I owe about $20,000 credit card debts. If I only pay minimum, I have to pay 16 years, and interest will be $16,000. If I double my payment each month, I don’t have such money.

I found “Fast Track Debt Relief” company online. They said they only charge one fee is 15% of my total debt. They help me reduce 45% of amount. I only have to pay less than $500 each month for all my credit card payments. Still, I will debt free in three years. They also tell me all my money will go to a trust fund. However, first three payments will consider as service fee in the trust fund. There are so many scams. Even though, I read many article about how to find a good settlement company, I still worry I would put myself in a worse situation.

For my situation, What should I do better to get rid of my debts? Should I ask help from settlement company to put all my payment into one?How do I find a good company or agency to help me? Is “Fast Track Debt Relief” company reliable? What kind of questions should I ask them? What document should I ask them to sent to me? Is fine to let them sent documents through Email, or request for mail documents?

I am sorry to ask you so many questions. After I read many pro and con article about these companies, I am very scare the company I choose would put me into a worse place.
Thank you so much for your help.

Sincerely,

Crystal”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

Dear Crystal,

Thank you for contacting me.

It seems we have several issues going on here so let me tackle them each individually.

You appear to be frustrated and anxious to resolve your financial situation. Sometimes this anxiousness can lead to impulsive decisions that are not in your best interest. You are wise to look around for information on different options in order to help you make the best decision for you.

It appears to me that your primary goal is to find a way to get your debt under control and eventually eliminate it. Debt settlement is one approach but it is not as easy as you may have been told.

Fast Track Debt Relief

I’m concerned that the message you heard from Fast Track Debt Relief is that your payment will only be $500, your debt will be reduced 45% and your debt will be eliminated in three years. I am however encouraged that they seem to have clearly explained to you the fee for their services will be 15% of your total debt and the fee will be paid up-front.

On the home page of their site the message seems to be celebratory. – Source

Should I Go With Fast Track Debt Relief? Im Scared.   Crystal

But the path to a potential debt reduction is not without it’s risks and hurdles. The success rate or failure rate of debt settlement clients is huge. It is said that 65% of consumers drop out of debt settlement programs after paying fees but never settling a debt. The industry says 34% of consumers settle debts, but research has found that only about 10% of people actually settle all their debts.

It might be hard to find but in this disclosure statement on the Fast Track Debt Relief site it says:

Your creditors may continue collection efforts on delinquent accounts while you are enrolled in a Debt Settlement Program. Such collection efforts can include phone calls and letters to you, charging off the account, sending accounts to collection agencies or attorneys, lawsuits and even garnishments of your wages if a judgment has been obtained Fast Track Debt Relief, Inc. no claim that it will be able to stop these collection activities. These activities may continue while Fast Track Debt Relief, Inc. is making its best efforts to negotiate your debt.

If you do not make required minimum payments to your creditors you may be breaking the terms of your agreements with them and your actions will probably be reported to consumer reporting agencies as late, delinquent, charged-off or past due balances. Your creditor may also raise the interest rate on your account and impose other penalties. Your account balance may continue to grow as your creditor adds accrued interest, late fees, over- limit fees and penalties. Your balance may continue to grow until a settlement is reached with your creditor; and, if negotiations are unsuccessful, you could be called upon to pay the entire balance. After settlement your creditor may comment that the account was “settled for less than the full amount” on your credit report. A Debt Settlement Program may have an adverse effect on your credit report and credit score.

Outside of the hard to find disclosure link the Fast Track Debt Relief site seems to be light on warnings of the possible consequences of enrolling. The consequences can be severe and very stressful.

Is Debt Stress What You Really Want?

From reading your question I am under the opinion that more debt stress is not what you are really going for here. And debt settlement can significantly add to your stress level unless you are prepared to get continual collection calls, risk being sued, want a bad credit report and face possible tax consequences from the forgiven debt.

It just seems like this situation has been stressful enough on you already. maybe we need to look at some other options and see if they might be better suited for you.

Is Credit Counseling the Answer?

In a traditional non-profit credit counseling program your creditors would reduce your interest and you would make continued monthly payments till the debt was gone. Typically this takes five years. In the debt management plan your monthly payment would be about the same as what you are paying now. You would not get collection calls as long as you continue to make the payment.

If your issue is the interest rates alone and you can afford the minimum monthly payment then a traditional credit counseling program might be a good solution for you. You can click here for credit counseling information.

Is Bankruptcy Right for You?

The Fast Track Debt Relief web site says it is a “Better alternative to Bankruptcy” but I don’t see how.

In bankruptcy most people eliminate their debts within months, your creditors and collectors could not call you, you can’t be sued, your wages can’t be garnished, and while your credit takes a hit, it can be easily rebuilt.

Bankruptcy makes sense if you simply can’t afford your current debt and you are finding it tough to get by. In that case you should click here to find a local bankruptcy attorney and go talk to them.

My Suggestion

Crystal I think you need to do some more research first and talk to a credit counseling agency and a bankruptcy attorney before you leap into any solution. More information only gives you a better ability to make a decision that is right for you.

If after talking to the credit counseling group and bankruptcy attorney you feel debt settlement is still the path you want to follow then I suggest you contact Damon Day for an independent consultation so he can potentially guide you to a debt settlement company that might charge you far less.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

Should I Go With Fast Track Debt Relief? Im Scared.   Crystal
Get Out of Debt Guy – Twitter, G+, Facebook

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Should I Go With Fast Track Debt Relief? I'm Scared. - Crystal by

Share This and Spread the Word

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • E

    Just so you know that when they settle on your debt its counted as income on your taxes next the following year that you have to pay taxes on, after my debt was settled I ended up paying $3500 in taxes to the IRS with that total and the total I payed to Fast Track I ended up paying more then what the settlement total was. so I ask myself was it worth it. I say NO

  • carolyn

    please do not get involved with these people

  • Tina

    I have been with this company since May 2011 and they have collected $300 a month from me and have done nothing. I have two credits cards with them and one of them served with legal documents to get a judgement last Saturday. I am now filing bankruptcy now that my credit score is 387. They do not do anything until they have enough money to offer to the company to settle. Since I am scheduled to be in the program for 30 months, that is how long it will show on my credit report that I did not pay. I was in a program where my interest rate was reduced and I made monthly payments and my credit rating stayed at least 600. Do not get involved with these people. Now no one will tell me if they will give me back the money I paid into the program. My bankruptcy attorney said that they may not.

  • Misslady0401

    Steve,

    This information was very helpful to me also. I actually talked to Representative at Fast Track Debt Relief. It was very weird but the Rep started to get angry and fraustrated as I asked her so many questions. She actually told me that she wasnt going to go back and forth with me and maybe I dont need to deal with debt settlement right now. She was rude. That was a clear sign that I SHOULDNT go with fast track debt relief. This is a new to me and I accrued so much debt because I was laid off after I couldnt work due to a vehicle accident I was in last year. I really Love this website and Im happy it was helpful.

    • http://GetOutOfDebt.org Steve Rhode

      Keep coming back and comment on other posts. A lot of people can benefit from what you learn along the way.

      Thanks for the info.

      • http://www.priormilitaryproductions.com/ Joanne

        Hi Steve,
        So I spent over an hour on the phone today with a very nice rep from Fast track and went along with everything he was saying. he said no (cash) upfront fees (its worked into my monthly), that they could get my 27,000 debt total down to $15,000 and that I would do a monthly payment of about $429.  he said it wont necessarily be a negative on my credit report and that it would be 48 month plan but more likely 32 and I could pay more if I wanted. I asked how they make money. he mentioned the 15% of total debt.  i agreed to apply.  We went over all my creditors/credit cards and that’s where he got my total.  he then advised me to cancel all those cards , which is ok with me as i really didnt want to accrue any more debt (ie by using them, not on late fees etc). I did cancel them all today except for a couple. I explained  to fast track rep (Bruce) that I had inquired a few years ago about debt settlement somewhere (can’t remember- some commercial i heard on the radio) and the advisor told me if I have been able to make the monthly payments then I shouldnt’ really go this way.  He didnt seem to agree. Thought it better I get my whole debt down and I agreed, it sounded pretty good.  I was under the impression that their company (who he said is a law firm) would be negotiating with my creditors sooner than later- not after I go into collections and look like a delinquent non payer. He did ask me if I’d be able to refrain from paying minimal payments and be ok if some creditors started to call and that if i was harassed, to tell him.  I guess I didn’t really realize what he was saying.  I mentioned to him that last year or year before , someone helped me get my interest rates lowered- they 3 way called each credit card on my behalf and negotiated something. Bruce asked how that worked out for me. well I’m still in debt.  Sorry for the long ramble, but after I got a copy of the contract I got a little freaked and wrote and told him so.  It was after his offfice hours so haven’t heard back, but luckily my appt they made me to meet with their paralegal is not tomorrow, but day after.  They seem to be quick to have you sign right away. I am having second thoughts and wanted to share with your forum. I wonder how it worked out for Tara above in 2010?  Anyway I did send Bruce all the cc last statements and have closed the accounts but at least I have not signed contract.  All the talk about possible suing and dropping you if no payment leaves me overwhelmed. My credit score didnt really have too many delinquent flags as much as just too many open credit cards with large amounts of debt. I’m not really in the mood to make myself look worse.  And I”m hoping if I get my large tax return (was able to make a lot of deductions as I started two production companies with no profit yet) so maybe I can pay a lump of my debt without their help.  Thanks for reading. If you ever want to read their contract, I’d be happy to share. 
        thanks again.
        Joanne

      • Mrjaguar86
  • Marcus Smith

    Steve,
    You as most people that dont really understand the new credit formula and the way that credit card companies have divisions/departments to deal with debt. Of course are going to discourage anyone from doing anything that doesn’t fall into your realm of limited understanding. Let consumers make up their own mind, when the Federal goverment makes a claim, the credit card lenders make a stink because according to you Fast Track is not only taking money from consumers but from them as well…..then that would make sense. What are your accredations as a financial advisor, put that on your site and I will make my due diligence from there.

    • Debtman

      Hi Marcus,

      Help a dude out here; what is the new credit formula? Whats new about card companies having different departments?

      While you are asking Steve about his qualifications, I am curious about yours. What are they?
      I ask because the first sentence of your post, to me, makes you come off as a dufus.

    • http://GetOutOfDebt.org Steve Rhode

      Marcus,

      I’ve read your comment several times now and I’m still left with the same reaction. What?

      I don’t understand your statement “when the Federal goverment makes a claim, the credit card lenders make a stink…” What are you specifically referring to?

      What are the “new credit formulas” you are talking about? 

      And I’m stuck trying to understand what your statement means when you say, “Of course are going to discourage anyone from doing anything that doesn’t fall into your realm of limited understanding.” Apparently my “limited understanding” includes your statement as well.

      Please try again to clarify and I’ll be happy to address your concerns.

  • Fast Credit Card

    I’ll post the same information to my blog, thanks for ideas and great article.

  • Mimi

    So, you haven’t had any issues paying off you’re creditors or debt using Fast Track Debt Relief?

  • Tony

    Hey Crystal, Tara and Steve,

    I’m in the same boat looking at fast track also thinking about trying them. I’ve been paying on my debt for over 2 years now and I’m just getting to the breaking point where I cant swim anymore. Through researching different solutions that might be possible to give a me a bit of light at the end of the tunnel, I ran across your question. Thank you Steve for you answer to Crystal, this will definitly help me as well as others that are reading this very same article. I felt very comfortable after reading Tara’s Statement and Your article. Tara Said it best Keep your chin up I’m doing the same, there are alot more out there then we can imagine that are in the same situation. I’ll keep people posted as well of which way I choose to go and how its working out. There is a solution out there and I’m eager to find it that best fits my needs. On a side note I’m 20k in credit debt also some creditors are working with me some are only temporary and about to go back to 29.99%. Doesnt seem alot but when the money flow is tight, the percentage is raising, the Stress does build. So Crystal Hang in there, I’m with you on this.

  • Tara

    Hi Crystal,
    I wanted to let you know that I signed up for Fast Track Debt Relief back in December and so far I have not had any problems.. I paid my fees the first couple of months and I sent letters to my creditors and they only called me in the beginning but once the letters were sent out I haven’t received any calls. Fast Track Debt checks in monthly and I can email or call my contact person any time with questions I may have. I was in the same boat as you and felt like I kept drowning since rates kept rising and I could not keep up. Keep you chin up..

    • Mimi

      So, you haven’t had any issues paying off you’re creditors or debt using Fast Track Debt Relief?

    • Katie

      Hi Tara, I was wondering if you could update us on your experience with Fast Track Debt Relief since I am supposed to meet with them for paper signing tomorrow. I have about $10,000 in debt and one card account past due already (American Express) Did they truly help or did it make it worse?

  • Crystal

    Thank you so much, Steve. I did some research after I sent email to you. And I decide to try Cura Debt. Of course, I haven’t make final decision yet, but I am looking for an easier way to get out the debt. I am a student. It’s very hard for me to pay almost $900 each month. Last couple years, my life was so stressful. I need a settlement company to help me to low my monthly payment and reduce the years of debt.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.