New Era Debt Solutions Review: Are They Legit?

New Era Debt Solution is a debt settlement company that has been in business for over 20 years and has settled over $250,000,000 in debt as part of its services. The company advertises its services on the website neweradebtsolutions.com.

A brief overview of New Era Debt Solutions:

You may have heard of New Era Debt Solutions when it comes to debt relief. However, what exactly does this company do? To find out, we conducted some research.

An investigation of their website and terms and conditions revealed some startling information.

These are just a few of the things that caught our attention.

• Depending on the individual’s ability to save funds and complete all program requirements, the results of this program may vary.
• Neither the program assumes nor pays any debts, nor does it provide tax or legal advice.
• There are some states where it is not available.
• Performance-based fees are charged by the company.
• Additionally, the company provides debt relief referral services.

New Era Debt Solutions: What are they?

You can get out of debt by settling your debts with New Era Debt Solutions. They will work with you to reduce your debt and help you get back on track with the help of financial experts, attorneys, and support staff. Since 1999, they have been operating at 330 Wood Road in Camarillo, CA. They can be reached at (805) 532-9000.

The Better Business Bureau gives New Era Debt Solutions an A+ rating. Since 2001, they have been accredited and have received an average of 100 reviews from customers. In the last three years, they have also resolved four complaints.

Exactly how does New Era Debt Solutions work?

Using the New Era Debt Settlement program, you can negotiate with your creditors to settle your debts for less than the full amount owed. In contrast to Credit Counseling or Consolidation Loans, which do not reduce the total amount you owe, this process reduces your interest rate.

It is possible to settle your debt more quickly through debt settlement than other methods. Rather than lose the entire amount in bankruptcy, creditors may be willing to accept payments that are less than the amount you owe.

What are the requirements for New Era Debt Solutions?

To determine whether you qualify for New Era Debt Solutions’ debt settlement program, you need to consider a few key indicators. These signs will help you get financial relief if you keep an eye out for them.

• It is important to note that debt settlement is not a “free lunch” for those who do not wish to pay their bills. It can, however, provide an honest and ethical alternative to declaring bankruptcy for those who are experiencing hardship circumstances and would prefer to work things out with creditors rather than declare bankruptcy.

• There is no doubt that debt settlement can be a challenge, but it is often the quickest and most affordable solution to financial difficulties. Staying committed to your goals, even when things get challenging, is imperative to your success. Debt settlement can be an effective method of getting back on your feet as quickly as possible for those who are dedicated to seeing it through.

• When you have a lot of unsecured debt, like credit card debt, lines of credit, signature loans, repossession deficiencies, and more, debt settlement can be a great option. If you’re struggling with credit card debt, you might want to consider debt settlement because you can usually get deeper discounts.

• Regarding settling debts, most experts recommend setting aside a certain percentage of the total owed. In particular, 1.5% of the amount should be set aside each month for repayment purposes. Therefore, for example, someone who owes $30,000 in unsecured debts could allocate around $450 per month with a repayment plan expected to last approximately three years.

BBB Rating of New Era Debt Solutions

There has been an A+ rating from the Better Business Bureau for the company and the BBB has accredited it since 2001. During the last three years, they have received an average of 100 reviews from customers and have resolved four complaints.

FAQs about New Era Debt Solutions

Can you tell me how much the New Era Debt Settlement program costs?

The cost of becoming debt-free will depend on some factors. Several factors must be taken into consideration, including your credit balances, your ability to make monthly payment escrows into your debt resolution program, the amount that can be negotiated from your outstanding balance and how quickly this can be accomplished, as well as any fees charged by New Era Debt Solutions.

The only fees charged by New Era Debt Solutions are performance-based. Their website doesn’t reveal their percentage of fees because they don’t charge any upfront fees.

What are the benefits of Debt Settlement?

While debt resolution can be an excellent alternative to bankruptcy, it is not appropriate for everyone. While it will assist you in getting out of debt and back on track financially, it will not be able to solve all your financial problems.

How does debt settlement affect taxes?

The amount of debt forgiven by creditors may be subject to taxation, but this is unlikely. Financial institutions must report any canceled debts exceeding $600 to the IRS, and the debtor must also report this income.

It is possible to offset the tax consequences of canceling debt by taking advantage of certain strategies. When you are insolvent at the time of the cancellation of your debts, the IRS allows you to deduct the amount of the cancellation from your income. The definition of insolvency is having a negative net worth or owning more than you own.

Those with a high net worth are more likely to incur taxes on any forgiven debt than debtors of lesser net worth. Due to typically having substantial home equity, which can offset the debt and make their net worth positive, they are less likely to be bankrupt. However, this is not necessarily the outcome in many cases, and most people don’t need to worry about being taxed on discharged liabilities.

Do New Era Debt Solutions’ debt settlements cause lawsuits?

Even though creditors have the right to sue if they do not receive payment, lawsuits are much less common than aggressive credit collectors lead you to believe. Most creditors prefer negotiating an amicable settlement overtaking a customer to court (with no guarantee of collecting a judgment).

You may have to pay a creditor’s outstanding debt balance in full in the worst-case scenario. The creditor may take legal action as a result of this.

What is the credit impact of New Era Debt Solutions?

Debt settlement can impact your credit score for up to 7 years negatively. Initially, it lowers your credit score by 100 points, but it has less impact over time. Nevertheless, the events that typically precede the need to settle debts (missed payments, etc.) can also negatively affect your credit score.

What is the process for canceling New Era Solutions?

New Era Debt Solutions makes it easy to terminate your debt settlement contract before you have made any payments. However, you will likely lose the funds sent to the company once you have begun paying. Therefore, contacting your bank and canceling any agreement allowing the debt settlement company to draft fees directly from your account is important.

You can cancel your debt settlement program by following these steps:

• You and your creditors have entered into a binding contract when you enter into a debt settlement agreement. For the agreement to be effective, both parties must comply with its terms. Consequently, it is important to be aware that premature termination of the agreement may result in a penalty fee. There may be circumstances in which a debt settlement company will waive these fees.

• Providing formal notice to your debt settlement company and the financial house of your intention to terminate the agreement isn’t always enough. To finalize the contractual cancellation, you must follow their instructions, which normally come in an automated email. Unless otherwise specified, continue making payments at their original rate until further instructions are provided.

• Before exiting debt, you may be asked to pay a specific amount to the debt settlement company. If you terminate the contract without making the necessary payments, you may be in an unsatisfactory legal position. 

• Following the termination of your debt settlement contract, you must meet with your creditors. You must let them know your plans to repay the debt and negotiate a new payment plan or make payments according to the original agreement. Payments that have been missed or owed must be made up.