With over two decades of experience, New Era Data Solutions can help settle your unsecured debt. The process is flexible and transparent, and you can get started with a free consultation.
New Era Debt Solutions Review 2022: Is It Right for You?
New Era Debt Solutions provides debt settlement services for customers struggling with unsecured debt they cannot afford to repay. This company does not provide loans, but instead negotiates with creditors on your behalf to lower your loan balances.
The process starts with a free consultation with an agent who explains how settlement works and reviews your eligibility. The company says its program can help you get out of debt within two to three years. However, settlement impacts your credit score as you stop payments from your creditors and instead make one payment toward your debt to New Era Debt Solutions.
While debt settlement doesn’t have the best reputation, New Era Debt Solutions claims to bring transparency to the process. The company has earned accreditation from the American Fair Credit Council and has no complaints with the Consumer Financial Protection Bureau or open investigations with the Federal Trade Commission.
Products & Services
New Era Debt Solutions can help you settle your unsecured debts. Examples of eligible types of debt include:
- Private student loans in default
- Old legal judgments
- Old repossessions
- Personal lines of credit
- Bank and department store credit card debt
- Signature loans
This company does not settle federal student loan debt, credit union debt, auto loans, mortgages, tax debt, or medical bills.
If you decide to enroll in the New Era Debt Solutions program after your initial consultation, you will make one monthly debt payment that the company will hold in an escrow account. Funds held in escrow are in custody of a third party, typically the bank. The larger your monthly payment, the sooner you can complete the debt settlement process.
When you save a percentage of your debt in the escrow account, the company begins negotiating with your creditors to settle your outstanding balance for a lump sum. New Era is one of the few debt settlement companies with attorneys on staff to facilitate negotiation.
Keep in mind that you will continue to accrue interest and late fees on your debts while enrolled in the program. In addition, your creditors can pursue collections for the outstanding debt, which may include placing a lien on your personal property or garnishing your wages. New Era says that about 6% of its clients experience legal action from creditors during the settlement process.
Creditors can also continue to contact you. However, you can divert these calls to your team at New Era Debt Solutions so they can attempt to negotiate for you.
It is important to consider the tax impact of a debt settlement program. If creditors forgive more than $600 in debt during the tax year, you must report the settled amount as income. In other words, if you have $50,000 in debt and you get a $30,000 settlement, you would owe income tax on an additional $20,000.
New Era Debt Solutions stresses that you remain in control of your funds throughout the debt settlement process. They also report that they have a team of expert negotiators who have close relationships with creditors, which may improve the likelihood that they will successfully lower your debt load.
Rates and Terms
New Era Debt Solutions charges 14% to 23% of your total settled debt for its services. Eligible veterans and members of the military can receive a discount of about 4%. While these fees are high, the industry average is 15% to 25% for debt settlement services. In addition, you do not have to pay if the company fails to reach a debt settlement agreement with your creditors.
Before enrolling in debt settlement, make sure you actually save money under the terms of the program. Between the fee for debt settlement and accrued interest and fees on your accounts, you may benefit less than expected from enrolling with this company. New Era Debt Solutions reports that the average client settles their debt for about 52% of the total, but this number does not account for fees.
Application Process and Qualifications
To enroll in the New Era Debt Solutions Program, you must demonstrate that you have unsecured debt you cannot repay because of a documented financial hardship, such as job loss, injury, illness, or death in the family. Unlike some competitors, this company does not require you to have a minimum amount of debt to qualify for services.
The company will also review your income and expenses to determine whether you can set aside enough money for debt settlement. Ideally, you should be able to pay 1.5% of your debt each month ($725 on $50,000 in debt, for example). If you cannot afford the proposed payments, your debt settlement program could stretch out for several years.
You can start the application process by visiting the website and selecting the link for a free debt analysis. When you complete this online contact form, you agree that the company can contact you by phone or text message.
After submitting the form, you will receive an automated message with a list of documents to gather, including credit card statements, bank statements, and other details about your debts and finances. A customer service agent will contact you to schedule your debt analysis session.
During this session, a debt settlement representative will review your information and determine whether you could benefit from the New Era Debt Solutions program. If you decide to move forward, this person will guide you through the process of enrolling your debt and setting up your online dashboard.
While New Era Debt Solutions says that some clients make progress toward settling debt within 90 days, most people don’t see results for at least six months. The average time to complete the entire debt settlement program is 28 months.
If you take care of your to-do list on the weekend, take note: New Era Debt Solutions only staffs its service line for existing customers from Monday through Friday, 8 a.m. to 5 p.m. Pacific Standard Time. New customers can reach a debt specialist from 7 a.m. to 8 p.m. PST, Monday through Saturday. The company says you can make an appointment for after-hours help.
Unfortunately, I repeatedly received a busy signal when I tried to call the New Era customer service line. The site also offers a chatbot, which confirmed I had the correct number. I could not find an email address for customer service.
New Era offers resources such as an online debt savings calculator that helps you understand how long it would take to repay your existing debt. It is also one of the few debt settlement companies with dedicated online resources in Spanish as well as English.
If you are in a dire financial situation and currently researching alternatives to bankruptcy for eligible unsecured debts, working with New Era Debt Solutions could be a step in the right direction. If you are current on your bills, debt settlement may reduce your credit score and have a negative impact on your financial security.
Before moving forward with debt settlement, make sure you understand the terms and conditions of the arrangement and consider other options such as debt consolidation. If you decide that settlement is the right financial solution, New Era Debt Solutions is an accredited company with positive overall reviews from current and former clients.
While this company offers generous online resources, connecting with a customer service agent can be difficult. However, the customer dashboard streamlines the process of managing your debt settlement payment plan and understanding your progress.
Frequently Asked Questions
Is New Era Debt Solutions legit?
New Era Debt Solutions is a legitimate debt settlement company. It has accreditation and an A+ rating from the Better Business Bureau and received an award from Trustpilot in 2017. It also has an overall user rating of 4.9 out of 5 stars on Google. This company follows FTC regulations that prohibit debt settlement companies from charging upfront fees.
Will New Era Debt Solutions hurt my credit?
Enrolling in any debt settlement program can decrease your credit score. When you stop making payments on your bills, your creditors will report the delinquency to the credit bureaus. In addition, once you settle your debt, your credit report will indicate that you paid less than owed, which also impacts your score.
How do New Era Debt Solutions settlements work?
New Era Debt Solutions negotiates with your creditors to lower the balances of your debt. In the meantime, you make one monthly payment to an escrow account. The company uses these funds to repay creditors if it can successfully negotiate a deal. Often, creditors agree if they think they can get more money than they would through the collections process.