New Era Debt Relief is a stand-out debt settlement company. Our reviewers found it to be admirably transparent about the details of its program, including recommending other alternatives if debt settlement isn’t appropriate. New Era Debt Relief has been providing debt settlement and other services since 1999. This firm manages everything in house, including customer service and negotiation with your creditors.
Debt settlement gives you an opportunity to pay down your debt with a lump sum. A debt settlement company like New Era can negotiate with your creditors on your behalf to reduce the amount you owe. The average reduction in debt is around 47 percent. A reputable debt settlement company like New Era won’t charge upfront fees. Fees are assessed on the debt you enroll in the program and range from 14 to 20 percent, putting New Era among the lowest of the settlement companies we reviewed. You pay the fees in addition to the lump sum you pay to your creditors. So, a savings of 47 percent ends up being closer to 30 percent. Typically a debt settlement plan through New Era lasts from 28 to 48 months.
there is no minimum required amount of total debt to be eligible for one of New Era’s programs, but each account you enroll needs to have at least $750 in debt. Companies such as Pacific and Accredited require minimums of at least $7,500. New Era Debt Solutions offers programs to residents of 43 different states.
When you call into New Era, you’ll speak with a debt relief specialist who will discuss your debt situation and the options you have for managing that debt. We recommend taking stock of your monthly expenses and budget before calling in; this will help the call go smoothly. On this first call, you can expect the debt settlement company to run a soft credit check to see which lenders you owe to. If your debt profile isn’t suited for debt settlement, then New Era will direct you toward a credit counseling agency, a bankruptcy attorney in your area or a debt consolidation lender.
A debt settlement plan requires you to stop making payments to your creditors and instead make deposits into an account set up by New Era through Reliant Account Management. You control the money in the account and can withdraw it when you like. After four to six months of saving, New Era will begin negotiating with your creditors. A successful program requires you to continue making payments into this account. Keep in mind that a debt settlement plan usually reduces your credit score because after your accounts go delinquent they may be sent to collections. New Era recommends changing your contact information so creditors contact it instead of you.
The company representatives we spoke to provided a lot of valuable information, including ways to deflect collections calls from creditors as well as details about their negotiation process.
New Era Debt Relief requires its customer service reps to undergo training to get certified by the IAPDA, but the company not accredited by any other industry groups.
New Era Debt Relief is a long-running debt settlement company that has an average reduction of 47 percent, adding fees that range from 14 to 20 percent of the debt amount enrolled. Payoff plans can last from 28 to 48 months.
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