New Era Debt Settlement Reviews: What You Need to Know
New Era Debt Solutions offers debt settlement services but lacks transparency in fees and guarantees. You can settle debt yourself for less money and more control using professional negotiation tools that guide you through every step.
Settle Your DebtGetting out of debt can feel overwhelming. Should you hire a debt settlement company or handle it yourself? You need answers to critical questions first. How trustworthy is the company? What guarantees do they offer? How much will they charge?
The debt relief industry is crowded with scammers. Finding a reputable company takes work. We’ll help you evaluate New Era Debt Solutions and determine if it fits your needs.
Stop Paying 14-23% to Settlement Companies
New Era and similar companies charge massive fees with no guarantees. Negotiate directly with your creditors and keep more money in your pocket.
Start Negotiating NowNew Era Debt Settlement Program Reviews
New Era Debt Solutions has 4.9 stars on Google. Companies often hire people to leave favorable reviews, so take ratings with caution. Customers praise New Era for specific reasons.
What Customers Like About New Era
- Responsive customer service: Many customers report positive experiences with follow-up and communication. New Era appears to prioritize customer service.
- Client dashboard access: Not all debt relief companies offer online tracking. New Era provides a user-friendly dashboard to monitor your progress.
Our Take on New Era Debt Solutions
We’ve conducted a thorough review of New Era Debt Settlement. Several significant drawbacks deserve your attention before you sign up.
Limited State Availability
New Era doesn’t operate nationwide. Check their website to see if they serve your state. Many consumers can’t access their services.
Unclear Fee Structure
You won’t know exactly how much you’ll pay upfront. According to Investopedia, New Era typically charges between 14% and 23% of your original debt. You can request an estimate, but the final amount changes. Most legitimate debt settlement companies disclose fees upfront. New Era’s lack of transparency raises concerns.
Minimum Debt Requirements
New Era requires a minimum debt amount to enroll. The company doesn’t clearly state this amount on their website. You’ll go through the consultation process only to discover you don’t qualify.
Tax Consequences on Forgiven Debt
Most debt settlement companies won’t warn you about this. The IRS may collect taxes on your forgiven debt amount.
Here’s how it works:
Example: John owed $2,000 on a credit card. The creditor forgave 50% ($1,000). The creditor reported this as a loss. But it’s John’s gain in the IRS’s eyes. John never received warning about this obligation. He was shocked when the IRS sent a notice demanding taxes on the forgiven amount. Any forgiven debt over $600 may count as taxable income.
No Guarantee Your Creditors Will Settle
This might surprise you most. You spend months saving the amount New Era says you need. But no debt settlement company can guarantee creditors will accept their offers. If lenders refuse to settle, you end up worse off than before.
You’ll be several months late with penalties and accrued interest. Your interest rate may increase. You could face debt collection lawsuits.
Here’s what one consumer said on New Era’s BBB page on 05/09/2022:
“I contracted a new era for debt consolidation. They promised around 40% of my debt I would have to pay back in the end. Right now, I’m around 70% and have had my check garnished, paid back the largest creditor on my own in full (100% plus fees and interest accrued for years) had multiple court visits where I was unprepared. I feel like I have been completely scammed in this process, and yet they continue to come up with more fees and less transparency.”
Your Credit Score Will Drop Significantly
You must let all your accounts default while saving for settlements. Missed payments go on your credit report during this time. Even after you pay, creditors report these accounts as “settled” rather than “paid in full.”
Those derogatory marks severely damage your credit score. You’ll struggle to get approved for a car loan, mortgage, or other necessities. Rebuilding your credit takes years of work.
Settle Debt on Your Own With Professional Help
You don’t need to hire an expensive debt settlement company. Our partner Solo helps you negotiate directly with creditors and collectors.
Settling debt yourself offers significant advantages over traditional settlement companies:
- You control the entire negotiation process
- You don’t pay any fees until you reach an agreement
- You can settle debts of any size
- You stay updated throughout every step
- You have legal defense options if you’re being sued
Here’s how it works in practice:
Example: Maria is being sued by The Kaplan Group, a debt collection agency. She responds to the lawsuit before her state’s deadline using our partner Solo. Maria reviews her income and budget to determine what she can afford. She sends an offer to The Kaplan Group through the settlement platform. They respond with a counteroffer. After several rounds of negotiation, Maria settles the debt for 60% of the original amount. Her case is dismissed. Maria feels financially reborn.
Understanding Your Options When Facing Debt
New Era Debt Solutions lacks transparency in critical areas. Their fee structure remains unclear. They don’t guarantee results. Your credit score will suffer during the process.
You have better options available. Taking control of your debt settlement puts you in the driver’s seat. You avoid expensive fees and maintain visibility throughout the process.
Whether you’re dealing with credit card debt, medical bills, or collection agency lawsuits, you can negotiate settlements yourself. Professional tools make the process straightforward and affordable.