Start New Financial is a company that offers debt relief services, claiming to have helped thousands of people get out of debt over the past eight years. With such claims, it’s natural to wonder whether Start New Financial is a scam or a legitimate service provider. In this article, we will take a closer look at their services, pros and cons, and customer reviews to help you make an informed decision.
- BBB A+ Rating & Accredited
- $500 Million Debt Resolved
- $7,500 Minimum Debt
Understanding Start New Financial’s Services
Start New Financial primarily offers debt settlement services, which involve negotiating with your creditors to accept less than the full amount of your debt. If successful, you make payments to Start New Financial, who will then pay your creditors on your behalf. It’s important to note that not all debts are eligible for enrollment, and the company does not guarantee specific reductions or a specific timeframe for becoming debt-free. Additionally, their services may not be available in all states.
Pros and Cons of Start New Financial
Before considering enrolling in a debt settlement program, it’s essential to weigh the pros and cons associated with their services. Here’s an overview:
Pros:
- Offers debt settlement services: Start New Financial specializes in negotiating with creditors to potentially reduce your debt burden.
- A rating on the Better Business Bureau (BBB): The company has an A rating with the BBB, which indicates a level of trust and credibility.
Cons:
- Not all debts are eligible for enrollment: Certain types of debt may not qualify for Start New Financial’s debt settlement program.
- Limited availability: Its services may not be accessible in all states.
- Debt settlement is not suitable for everyone: It’s important to evaluate whether debt settlement is the right option for your specific financial situation.
- Potential credit damage: Debt settlement can have a negative impact on your credit score and your ability to obtain new lines of credit.
- 105 complaints on the BBB: It has received 105 complaints in the last three years, indicating potential issues with its service.
- No guarantees: The company does not guarantee specific reductions or a timeframe for becoming debt-free.
Understanding Start New Financial
Start New Financial is a company that has been operating since 2013, headquartered in Grand Rapids, Michigan. They offer debt settlement services and debt consolidation loans, aiming to help individuals overcome their debt burdens. The company also provides credit counseling services to assist customers in improving their overall financial situations. With an A rating from the BBB, Start New Financial has garnered some level of recognition in the industry.
The Working Process of Start New Financial
To begin the process with Start New Financial, you need to schedule a free consultation with their team. During this consultation, they will assess your financial situation and create a personalized plan to address your debt. Depending on your circumstances, they may recommend a debt settlement plan, where negotiations with creditors aim to settle your debts for less than the full amount owed.
It’s important to note that Start New Financial does not assume consumer debt, provide tax or legal advice, or offer credit repair services. Their primary focus is debt settlement and debt reduction programs.
Qualifications for Start New Financial
To qualify for Start New Financial’s debt settlement plan, there are certain requirements you must meet:
- Minimum $10,000 in unsecured debt: This includes credit card debt, medical bills, personal loans, and other types of unsecured debt.
- Debts from U.S.-based creditors: Start New Financial cannot settle debts with foreign creditors.
- Ability to make monthly payments of at least $250: These payments go into a savings account to be used for debt settlement.
Meeting these qualifications makes you eligible. However, it’s crucial to contact a representative to learn more about the program and determine if it aligns with your specific needs. Other basic requirements include being older than 18, residing in the United States, not currently being bankrupt, and having a verifiable source of income.
Understanding Start New Financial’s Fees
Start New Financial charges an approximate 25% fee for the debt enrolled in your program. This fee is classified as a performance fee, meaning it’s charged only when they successfully perform debt settlement services. However, this fee can present a challenge for individuals already struggling with debt, as it can further impede their ability to become debt-free.
Additional fees associated with the program include check-by-phone banking fees for settlements scheduled with creditors. It also offers an optional third-party legal insurance program, which charges a $30 monthly fee. It’s important to compare these fees with other options and consider them carefully before making a decision.
Impact on Credit Score
It’s important to understand that debt settlement can negatively impact your credit score for up to seven years. During this period, your credit score may drop by as much as 100 points. Moreover, creditors generally consider debt settlement only after a debtor is delinquent or already in default. This means your credit score could drop by as much as 110 points before negotiations even begin.
Cancelling Start New Financial
If you find yourself dissatisfied with Start New Financial’s debt settlement program and wish to cancel your enrollment, follow these steps:
- Call Start New Financial’s customer service number to request cancellation.
- Send a written cancellation notice, including your name, address, phone number, and account number. Keep a copy of the notice for your records.
- Stop making payments and begin making payments directly to your creditors. Contact your bank to stop any payment authorization to the company.
If you have any questions or require assistance, consider reaching out to a debt settlement attorney for guidance.
Start New Financial BBB Reviews
To gain insight into Start New Financial’s reputation and credibility, it’s advisable to review its standing on the Better Business Bureau (BBB) website. Start New Financial has been accredited since 2017 and holds an A rating. Over the past three years, they have resolved 105 complaints, with 33 complaints being closed in the last 12 months.
The BBB is a trusted source for financial reviews, making it an important resource to consult when evaluating a company’s legitimacy. Therefore, if you are considering using Start New Financial’s services, it is wise to read their BBB reviews to gain further information.
FAQs
1: How long has Start New Financial been providing debt relief services?
Answer: It has been in the business of offering debt relief services for over eight years. Since its establishment in 2013, they have been assisting individuals in getting out of debt.
2: What types of debts are eligible for enrollment in Start New Financial’s debt settlement program?
Answer: Start New Financial debt settlement program that considers various types of unsecured debts, including credit card debt, medical bills, personal loans, and other similar types of debt. It’s important to consult with their representatives to determine if your specific debts qualify for enrollment.
3: Are Start New Financial’s services available nationwide?
Answer: While it provides debt relief services, it’s important to note that its services may not be available in all states. The availability of their services varies, and it’s advisable to check with their representatives to confirm whether they operate in your state.
4: How does debt settlement affect one’s credit score?
Answer: Debt settlement can have a negative impact on your credit score for up to seven years. During this period, your credit score may decrease by as much as 100 points. It’s crucial to be aware of this potential consequence before opting for debt settlement.
5: Can Start New Financial guarantee specific reductions in debt amounts or a specific timeframe for becoming debt-free?
Answer: No, it does not guarantee specific reductions in debt amounts or a particular timeframe for achieving debt-free status. Each individual’s debt settlement results may vary depending on their specific circumstances and negotiations with creditors.
6: What fees does Start New Financial charge for their services?
Answer: It charges an approximate 25% fee for the debt enrolled in your program. This fee, classified as a performance fee, is only charged when they successfully perform debt settlement services. Additional fees may include check-by-phone banking fees for settlements scheduled with creditors, and there is also an optional third-party legal insurance program with a $30 monthly fee.
7: How can one cancel their enrollment with Start New Financial?
Answer: To cancel your enrollment, you need to call their customer service number and request cancellation. Additionally, you should send a written cancellation notice including your name, address, phone number, and account number to their provided address. Remember to keep a copy of the notice for your records. After cancellation, make payments directly to your creditors instead of Start New Financial.
8: Does Start New Financial has a good reputation with the Better Business Bureau (BBB)?
Answer: Yes, Start New Financial holds an A rating with the Better Business Bureau (BBB). This rating indicates a level of trust and credibility. However, it’s important to review their BBB profile, including any complaints and customer reviews, to gain a comprehensive understanding of their reputation.
9: Can Start New Financial assist with bankruptcy proceedings?
Answer: No, Start New Financial does not provide bankruptcy services. Their focus is primarily on debt settlement and debt reduction programs. If you require assistance with bankruptcy, it’s advisable to consult with a bankruptcy attorney or seek guidance from a legal professional specializing in bankruptcy law.
10: Is Start New Financial the right choice for everyone struggling with debt?
Answer: Debt settlement, including Start New Financial’s services, is not suitable for everyone. It’s essential to evaluate your financial situation, consider alternative options, and consult with a financial advisor to determine the best course of action. Every individual’s circumstances are unique, and personalized guidance can help you make an informed decision about your debt relief journey.
Is Start New Financial Legit or a Scam?
While Start New Financial is a legitimate company that offers debt settlement services, it’s essential to be aware of the potential risks involved and the complaints raised by consumers. Complaints include accusations of being a scam, poor customer service, and unethical business practices.
To protect yourself, it’s crucial to conduct thorough research, read reviews from other consumers, and carefully consider the risks associated with debt settlement services before making any decisions.
In conclusion, Start New Financial offers debt relief services that have the potential to help individuals overcome their debt burdens. However, it’s important to approach their services with caution, considering the pros and cons, understanding the qualifications, and being aware of the potential impact on your credit score. Ultimately, seeking advice from a financial advisor can provide valuable guidance in determining whether Start New Financial is the right choice for your specific financial needs.
Start New Financial
Start New Financial Review
In conclusion, Start New Financial offers debt relief services that have the potential to help individuals overcome their debt burdens. However, it’s important to approach their services with caution, considering the pros and cons, understanding the qualifications, and being aware of the potential impact on your credit score. Ultimately, seeking advice from a financial advisor can provide valuable guidance in determining whether Start New Financial is the right choice for your specific financial needs
