- 1 New Era Debt Solutions Reputation
- 2 How much does it cost?
- 3 How much could I save with New Era Debt Solutions?
- 4 How do New Era Debt Solutions’ settlements work?
- 5 What are the benefits and drawbacks of New Era Debt Solutions?
- 6 What exactly is New Era Debt Solutions?
- 7 I’ve signed up. What happens next?
- 8 3 tips for making New Era Debt Solutions a smart move
- 9 Bottom Line
New Era Debt Solutions wants to turn the tables on debt by offering a more transparent and personalized experience. The company has been rated highly for its commitment to customer care, which means you can expect quick responses from its support staff if needed. It’s not guaranteed to work, however, and you won’t be able to get help with medical bills or credit union debts.
New Era Debt Solutions Reputation
The debt relief industry is a tricky business and many companies that promise relief turns out to be less than reputable. If you want the security of knowing your money will go towards an established firm with good reviews from customers who have been burned before then do some research upfront. New Era Debt Solutions doesn’t have any registered complaints with the Federal Trade Commission or the Consumer Financial Protection Bureau.
How much does it cost?
New Era Debt Solutions understands the challenges service members and veterans face when trying to pay off their debt. They charge a fee that ranges from 16% up to 20%, depending on how much-enrolled debts you have as well as what can be afforded by your budget or financial stability needs in order for the services provided at no cost whatsoever.
New Era doesn’t charge more than 20% of your debt, however. And fees only apply after it reaches a settlement.
How much could I save with New Era Debt Solutions?
New Era Debt Solutions offers its clients the chance to see an average savings rate of 56.27%, but when you factor in fees and other costs, this jumps down between 36%-40%.
Say you enroll $10,000 in credit card debt with New Era Debt Solutions which grows to $14,489.89 by the end of the program. You might expect to save around $8,114.33 or between $5,216.36 and $5,795.96 after fees, effectively reducing your originally enrolled debt by more than 50%.
Keep in mind that the IRS treats settled debts of $600 or more as taxable income.
How do New Era Debt Solutions’ settlements work?
Debt settlement is a great option for people with credit problems. However, it may not lead to as many savings as you expected because your debts will continue growing while in the program and if they stop paying off creditors altogether after entering this type of agreement with them- then how much money can be saved might just go downhill.
New Era is different from most debt settlement companies in that it starts negotiations earlier. This means your debts might not grow as much while you’re enrolled with them, and they will begin talks on reducing those balances before 50% of what’s owed has been paid off yet.
What are the benefits and drawbacks of New Era Debt Solutions?
- High rate of completion: Only 18.28% of New Era Debt Solutions clients drop out of the program before completion. For perspective, the average was somewhere around 90% before the Federal Trade Commission’s (FTC) 2010 crackdown on the industry.
- Discounts for military personnel and veterans: Servicemembers may see a fee discount of some 4%, depending on how much debt they enroll in.
- Available in most states: New Era’s site lists 43 states served with debt settlement, with major hubs in New York, San Diego, and other metro areas.
- Restrictions on debt types: New Era offers many payment plans for unsecured debts, but you’re limited to settling medical or credit union debts with them.
- Success isn’t guaranteed: It’s not unique to New Era, but enrolling doesn’t mean that debt settlement will work for you. You won’t pay fees if your debts aren’t settled, and you can withdraw at any time if you aren’t satisfied.
- Fees are not transparent: It’s hard to quickly compare specific fees given the lack of info on their site. But customer service is happy to rattle off stats if you call them.
What exactly is New Era Debt Solutions?
Founded in 1999, New Era Debt Solutions is a pioneer in its industry and claims to have settled more than $200 million worth of debts for its clients.
The transparency and reach of this program are what sets it apart from other programs. You can easily find all the information you need to know about how much money will be saved, as well as why clients drop out often before reaching their goals.
It’s also one of the few debt settlement companies that serve more than a handful of states. New Era sends clients from states where debt settlement is restricted to Customer First Legal Network (CFLN), a law firm that specializes in debt settlement while following the FTC’s debt settlement regulations. With CFLN clients, New Era takes on some of the work, including negotiations and customer service.
New Era Debt Solutions can help you with any unsecured debts, but they turn away certain types of enrollments. These include:
- Credit union debts
- Federal student loans
- Medical or hospital bills
- Car loans
- Other secured debts
What does the Internet say about New Era Debt Solutions?
In December 2018, this company had no customer complaints and its BBB rating is A+. Even though there are a few negative reviews about how helpful or unprofessional the staff was when dealing with them; most customers were happy, even surprised- at just how much money they saved.
It’s clear that New Era has paid attention to what customers are saying about them on other forums. They’ve made an effort to write personal responses and provide detailed answers, which is something we haven’t seen before from any other business in this situation.
Is it safe to use New Era Debt Solutions?
When you visit the New Era Debt Solutions’ website, your personal and financial information is encrypted using SSL technology. They are a certified member of the International Association of Professional Debt Arbitrators (IAPDA), which sets industry standards for arbitration services; they also have been accredited by BBB since 2001.
How do I get started?
Think New Era Debt Solutions might be able to help you? Follow these steps to begin the process:
- Go to the New Era Debt Solutions website.
- Enter your name, the amount of debt you’d like to enroll in, your state, and contact information before hitting.
- Check your email for a note from New Era Debt Solutions asking you to get together a list of your creditors and debts that you’d like to enroll while you wait for a representative to get in touch. You also have the option of emailing New Era that information so your representative is better prepared for your conversation.
- A representative calls you to discuss your options and whether you’ll benefit from debt settlement.
- If all’s a go, your rep guides you through the process of enrolling your debt, determining how long your program should last and how much you’ll deposit into your settlement fund each month.
I’ve signed up. What happens next?
In New Era’s debt settlement program, you can expect to go through the following steps:
- Get set up with a team: New Era Debt Solutions offers you the opportunity to work with a knowledgeable and dedicated team throughout your debt settlement program. You’ll receive information on how they can help, as well as contacts in case any questions arise.
- Start saving funds: First, you’ll set up an escrow account, a third-party account, for your monthly contributions to your settlement fund. At this point, most people stop paying their creditors.
- Keep New Era in the loop: New Era needs monthly statements on your escrow to ensure that all payments are made.
- New Era negotiates: New Era will work with you to reach an agreement on how much of your debt should be paid off in order for it not to affect future payments.
- New Era pays off your creditors. New Era will work with you to negotiate your structured settlement or monthly payments of the settled amount, plus interest on top of it. You’ll be charged a fee at this point too.
If you’re having trouble reaching a decision, contact your New Era representative or another person in the directory. You can also log into our client dashboard for help with basic questions.
3 tips for making New Era Debt Solutions a smart move
The following are a few pointers to help you make the most of your debt settlement program:
- Don’t miss payments: Settling a case can be an emotional and difficult process. The longer you wait to contribute, the more interest accrues — which might make it hard for your family financially in years down the road.
- Reach out for help: New Era has been providing customers with exceptional service for decades. If you ever need help, their knowledgeable staff will assist in any way possible.
- Get used to budgeting: The key to financial freedom is getting out of debt. But if you want a mastered plan for staying above water, make budgeting your new habit.
New Era Debt Solutions has a surprisingly high completion rate and doesn’t enforce minimum debt requirements. They also have rave ratings from creditors, so if you’re looking for someone who will work hard on your behalf this is definitely worth checking out. Make sure your debts are eligible before you apply, however.
Enrolling doesn’t guarantee that its services will work, and debt settlement can dig you into a deeper hole if your creditors aren’t willing to budge.