In this post:
- New Era Debt Solutions - Company Overview
- Types of Debt
- New Era Debt Solutions: How It Works
- Understanding Credit Card Debt
- Other Debt Relief Services
- How Much Does New Era Debt Solutions Cost?
- How To Get Started with New Era Debt Solutions
- How To Cancel
- Customer Service Contact Info.
- Common Questions
- Is New Era Debt Solutions Right for Me?
High inflation and economic challenges have led to an increase in debt for many Americans. People from different backgrounds are searching for effective ways to tackle their financial burdens. New Era Debt Solutions has gained popularity as a reliable option for those seeking debt relief. The company offer a variety of solutions to help individuals regain control of their finances.
Top Debt Relief Options
New Era Debt Solutions was originally established in 1999 as DTS Financial, a financial consulting firm whose founders quickly realized the need for workable debt management solutions for its clients looking to create healthy financial futures. The name became New Era Debt Solutions in 2007 after debt relief became the company’s number one service.
New Era Debt Solutions – Company Overview
Headquartered in California, New Era Debt Solutions operates in 47 states, including Connecticut, Nevada, and Virginia. On average, the company has helped settle over 57% of the debt enrolled in its debt settlement plans. Additionally, most clients can pay off their enrolled debt in just over 27 months after beginning a program.
Pros
- Offers help for business and personal debt
- Free consultation
- Credit repair services available upon completing a program
- Only $5,000 in debt needed to qualify
Cons
- Not available in 16 states
- Website is a bit clunky to navigate
- Limited weekend customer support hours
Year Founded: 2000
BBB Rating: A+
Areas Served: 34 states
Fees: Up to 20% of settled debt
Customer Service Hours: 9 a.m. to 8 p.m. EST Monday to Friday; 10 a.m. to 3 p.m. EST Saturday
New Era Debt Solutions is one of the most transparent companies in the debt settlement industry, answering many of the questions a client would want to know before enrolling their debt openly on its website. From plan fees to debt solution outcomes, New Era Debt makes it easy for prospective clients to determine how much they might be able to save and how quickly they can expect to pay off their debt.
New Era Debt Solutions has also been accredited with the Better Business Bureau since 2001 and currently has an A+ rating and a nearly 5-star review average.
Types of Debt
New Era Debt Solution helps its clients settle and pay off unsecured debt. Unsecured debt is a type of debt that isn’t attached to collateral. An example of unsecured debt is credit card debt, while an example of secured debt is a home loan. If you don’t pay your mortgage, you could risk losing your home in the process.
Unsecured debt doesn’t come with the same type of risk, although if you fall behind on paying it, you can still end up in legal trouble. This type of debt usually comes with higher interest rates, which can quickly snowball your debt if you miss a payment or only pay the minimum payment each month.
Here are a few examples of unsecured debt that you can enroll in a New Era Debt Solutions plan:
- Credit Card Debt
- Personal Loans
- Private Student Loans
- Medical Bill Debt
- Personal Lines of Credit
đź’ł Credit Card Debt
Credit card debt is among the most common debt to include in a debt settlement program because it’s one of the easiest to spiral out of control. Many creditors charge massive interest rates for their credit cards, sometimes reaching as high as 30%, which can quickly make a small balance turn into a large balance, especially if you pay just a minimum monthly payment.
đź’µ Personal Loans
Personal loans come from a bank or lender and can be used for various purposes. Many borrowers use them for debt consolidation to bundle other debts, like an auto loan or credit card debt. However, this often results in moving debt from one place to another rather than solving the problem. Personal loans usually have lower interest rates than credit cards, but they can still have relatively high rates for people who have average or fair credit.
🎓 Private Student Loans
Student loans help cover tuition, books, and fees for college classes. New Era Debt Solutions doesn’t handle federal student loans in its debt management programs. However, private student loans from a private bank or lender may qualify.
đź©ş Medical Bill Debt
Medical care costs can quickly escalate for people who are uninsured or underinsured or those who need a lot of medical care. Medical bill debt can come from doctors, hospitals, pharmacies, or specialists.
đź’¸ Personal Lines of Credit
Personal lines of credit are similar to personal loans in that they can be used to pay for almost anything. However, unlike a loan, lines of credit are open, allowing you to borrow only what you need up to your allowed amount.
New Era Debt Solutions: How It Works
New Era Debt Solutions makes sure that anyone interested in its debt negotiation services is a good candidate for assistance. The company does this through an initial consultation to get a better idea of the type of debt and debt amount you have and your overall financial situation.
During this free consultation over the phone, New Era Debt Solutions will ask you about your unsecured debt to ensure that it can be settled. For example, credit card debt is usually among the most negotiable, so having your unsecured debt come from credit cards can often lead to the most significant settlement.
New Era Debt will also check that your monthly income can reasonably support the monthly payment you’ll have for your plan, preventing you from getting into further debt as you pay off your agreements.
If you qualify and sign up with New Era Debt Solutions, the company will work on settling and negotiating your debts with creditors, whether it’s reducing your totals, lowering an interest rate, or wiping away some personal debt through settlements. You’ll get notified before any agreement is finalized for your stamp of approval.
Understanding Credit Card Debt
New Era Debt Solutions will take on various types of unsecured debt for your enrolled debt. However, the most common type to enroll is credit card debt, as the company believes that most people can have the most success at wiping away debt from a credit card while enrolled in the program.
Credit card debt is usually the easiest to negotiate with creditors. Not only can New Era Debt Solutions work with creditors to reduce your interest rate, but the company may also be able to negotiate a lower balance in exchange for a lump sum payment. In some cases, New Era may be able to settle your credit card debt for as much as an 80% reduction in the amount you actually owe.
Even if a credit card company doesn’t accept a settlement agreement, it might agree to stop charging interest or late fees as long as you meet the requirements of a payment plan set in place.
Although you can use New Era Debt Solutions with other types of debt, know that the company is highly skilled in helping consumers with credit card debt and that you may see the most success if the majority of your enrolled debt is from credit cards.
Other Debt Relief Services
New Era Debt Solutions works with customers during their initial consultation to find the right type of debt settlement for them. If the company deems that a customer’s situation is right for a debt management plan, it will introduce them to the steps needed to enroll.
If the customer’s financial situation doesn’t fit the criteria for a debt management plan, New Era Debt Solutions may suggest one of the following alternatives:
- Credit Counseling: Credit counseling can help people learn to manage the debt they have, apply for and maintain credit, and build their credit score through educational resources and guidance.
- Debt Consolidation: Debt consolidation is the process of combining multiple types of debt into another type of debt, like using a personal loan to pay off credit card debt.
- Bankruptcy: Bankruptcy is usually a last resort for people struggling to pay off their debt, but it may be necessary when debt becomes unattainable to pay off.
How Much Does New Era Debt Solutions Cost?
New Era Debt Solutions charges a service fee when it helps a customer settle their debt. The fee usually ranges from 14% to 23% of the debt that was settled, but you won’t need to pay the fee until your settlement occurs.
New Era Debt Solutions will deduct this fee from your dedicated bank account that you use to send monthly payments, so it’s not an additional payment.
How To Get Started with New Era Debt Solutions
You can start your free debt analysis online by clicking the button on New Era Debt Solutions’ website. After signing up for your free consultation, you’ll receive a call – usually within one business day – from a debt specialist who will ask you additional questions about your debt and explain the debt management process.
If you’d like to speak with someone right away, you can call the New Era Debt Solutions customer service number. Have information ready about the debts you’d like to enroll, such as the creditor information, interest rate, and amount of each debt.
How To Cancel
You can cancel your New Era Debt Solutions plan at any time if you’d prefer to manage your debt obligation on your own. Simply contact the debt relief company to request the closure of your account. You’ll receive any money stored in your dedicated account back, minus any service fees you might owe for debts that have already been settled.
Customer Service Contact Info.
Prospective customers who would like to learn about New Era Debt Solutions debt relief service options or to begin their initial consultation can call 866-536-8992. Specialists are available at this number Monday through Saturday from 7 AM to 8 PM PST, although you can also make an appointment after hours if needed.
If you’re a current customer of New Era Debt Solutions, call 800-988-4387 instead. This number is available Monday through Friday from 8 AM to 5 PM PST.
You can also start the free debt analysis process online or use the website’s contact form to fill in your contact information for a debt specialist to reach out to you.
Common Questions
Is New Era Debt Solutions legit?
Yes. New Era Debt Solutions is a legitimate business whose owners have nearly three decades of experience in the financial management industry. The debt settlement company provides personalized debt solutions to help customers pay off their debt to improve bad credit and become more financially sound. If a customer’s financial situation isn’t well suited for a debt management plan, New Era Debt Solutions will offer additional suggestions for them to take care of their debt.
Will New Era Debt Solutions hurt my credit score?
Signing up for a debt management plan with any company, including New Era Debt Solutions, may temporarily affect your credit. That’s because you’ll need to stop paying your debts while the company works on settling them with creditors. When this happens, your non-payments can be reported to credit bureaus, negatively affecting your score. However, as you pay off your debts through your plan, you should see your credit score improve.
How many customers finish their debt management program with New Era Debt Solutions?
Most customers who begin a debt management program with New Era Debt Solutions ultimately finish their program. New Era Debt Solutions currently has a dropout rate of just 18.28%, meaning that just over 18% of people do not finish their programs. Most often, this is because clients have decided to file for bankruptcy instead, which is the case for about 10% of dropouts.
How much can I expect to settle through New Era Debt Solutions?
New Era Debt Solutions’ average settlement is just 42.87% of the original debt, meaning that the company has successfully settled more than 57% of its clients’ debt. Your settlement may be less or more than this amount, depending on your creditors and how much you enrolled.
Will I still get calls from creditors while enrolled?
Yes, you could still get calls from creditors when you’re enrolled in a New Era Debt Solutions plan. Your creditors may continue to call you about your debt until a successful negotiation has been reached.
Can I still use my credit cards while I’m enrolled?
No, you should not use your credit cards while enrolled in a New Era Debt Solutions plan. Doing so could affect the company’s ability to negotiate your debts on your behalf.
Does New Era Debt Solutions help with credit counseling?
New Era Debt Solutions is not a credit counseling program. However, its debt specialists may provide a small amount of credit counseling to help you understand your debt and what you’ll need to do to be successful in paying off your debt through your debt management program.
Will all creditors agree to negotiate my debt?
Creditors have no obligation to agree to negotiate your debt, and some may not be open to working with New Era Debt Solutions. However, New Era Debt Solutions will take all reasonable steps necessary to negotiate your debt.
Is New Era Debt Solutions Right for Me?
New Era Debt Solutions is touted as one of the best debt relief companies with years of experience in the financial industry. With its debt management plans, it can help you wipe away your debt without leaving you wondering how to get out of debt on your own.
Still, several debt management companies exist for a similar reason: to assist consumers in getting away from their bad credit and debt from personal loans and credit cards to reach a healthier financial future. Before working with New Era Debt Solutions, make sure it’s the right fit for your needs. You can do this by calling for your free initial consultation to speak with a debt specialist, talk about your debt, and learn how the company can help you become debt-free.
