New Era Debt Solutions Review: Is It A Scam Or Is It 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. They advertise their services at neweradebtsolutions.com.

3.5 out of 5.0 stars3.5

New Era Debt Solutions Summary:

When it comes to debt relief, New Era Debt Solutions is a company that you may have heard of. But what exactly does this company do? We did some research to find out.

After conducting an investigation of their website and terms and conditions, some startling information came to light.

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

• Results from this program may vary depending on an individual’s ability to save funds and successfully complete all program terms.
• The program does not assume or pay any debts, nor provide tax or legal advice. 
• It’s not available in all states.
• The company charges performance-based fees.
• The company also works as a Debt Relief referral service.

What is New Era Debt Solutions?

At New Era Debt Solutions, they help you get out of debt by settling your debt. They have a team of financial experts, attorneys, and support staff who will work with you to reduce your debt and help you get back on track. They have been operational since 1999 and are located at 330 Wood Road in Camarillo, CA. Their staff can be reached at (805) 532-9000.

New Era Debt Solutions has an A+ rating from the Better Business Bureau. They have been accredited since 2001 and have an average of 100 customer reviews. They have also closed 4 complaints in the last 3 years.

How do New Era Debt Solutions work?

New Era Debt Settlement program involves negotiating with your creditors to pay off your debts for less than the full amount owed. This is different from simply reducing your interest rate, as with Credit Counseling or Consolidation Loans, which don’t reduce the total amount of money you owe.

Debt settlement can provide a quicker way to deal with your debt than other methods. Creditors may be willing to accept payments that are less than the amount you owe to close out an account, rather than lose the entire amount in a bankruptcy proceeding.

How to qualify for New Era Debt Solutions?

There are a few key indicators that will help you determine whether you can qualify for a New Era Debt Solutions debt settlement program. Keep an eye out for these signs, and you’ll be on your way to getting the financial relief you need.

• Debt Settlement is not a “free lunch” for people who don’t feel like paying their bills. However, for those facing hardship circumstances and preferring to work things out with creditors rather than declare bankruptcy, it can provide an honest and ethical alternative form of relief.
• Debt settlement can be a tough road to take, but it’s often the quickest and most affordable way out of financial difficulties. Your level of commitment to staying the course, even when things get bumpy, is key to success. For those who are willing to see it through, debt settlement can help you get back on your feet faster than any other option.
• Debt settlement can be a great option for those with a lot of unsecured debt, like credit card debt, lines of credit, signature loans, repossession deficiencies, and more. You can usually get deeper discounts on debt settlement than other types of debt negotiation, so it’s worth considering this strategy if you’re struggling with credit card debt.
• Debt settlement programs require you to set aside money each month to pay off your debt. A good rule of thumb is to set aside 1.5% of your total debt. For example, if you owe $30,000 in unsecured debt, you should be able to consistently set aside $450 per month. This would allow for a program of approximately three years’ duration.

New Era Debt Solutions BBB Reviews

The company has an A+ rating from the Better Business Bureau and has been accredited since 2001. They have an average of 100 customer reviews and have closed 4 complaints in the last 3 years.

Here are some reviews:

Ruby M 10/24/2022

5.0 out of 5.0 stars5.0

I was with New Era Solutions for two years and they have helped me every step of the way. They are fantastic!

Cierra A 10/19/2022

5.0 out of 5.0 stars5.0

I love New Era Debt Solutions because they did everything they could to make sure I was successful. Months when I was short or couldn’t make it they adjusted my payments. They kept me up-to-date with any new activity and settlements. They were so easy to work with. They were always very responsive. I would recommend them to anyone struggling to get back on track financially.

Helen J 10/09/2022

5.0 out of 5.0 stars5.0

I would use them again if I needed to. Very professional with you and with the companies while settling your debt. They keep you informed of your progress every month. A-1

Initial Complaint 05/09/2022

Complaint Type:Billing/Collection IssuesStatus:AnsweredMore info

1.0 out of 5.0 stars1.0

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 and had no knowledge of what to say or how to prepare and was practicing left to the wolves. I feel like I have been completely scammed in this process and yet they continue to come up with more fees and less transparency.

New Era Debt Solutions FAQs

How much does the New Era Debt Settlement program cost?

There are a number of factors that will affect how much it will cost you to become debt-free. These include your credit balances, your ability to make monthly escrow payments into your debt resolution program, how much can be negotiated from your outstanding balance and how quickly this is achieved, and any fees charged by New Era Debt Solutions.

According to New Era Debt Solutions, they only charge performance-based fees. They don’t charge any upfront fees, but they don’t reveal the percentage of their fees anywhere on their site.

Will Debt Settlement work for you?

Debt resolution can be a great alternative to bankruptcy, but it’s not right for everyone. It can help you get out of debt and back on track financially, but it won’t work miracles.

What are the Tax consequences of Debt Settlement?

You may owe taxes on the amount of debt forgiven by creditors, though this is unlikely. The reason is as follows: Any canceled debts exceeding $600 must be reported by financial institutions to the IRS, and the debtor must also report this income on their tax return.

Canceling debt can have some tax implications, but there are ways to offset them. The IRS allows you to deduct any canceled debts from your income, up to the amount that you were insolvent at the time the debts were canceled. Insolvency is defined as owning more than you own – in other words, having a negative net worth.

Debtors with a high net worth are more likely to pay taxes on forgiven debt, as they are less likely to be insolvent. This is because they typically have a high level of home equity, which can offset the debt and make their net worth positive. However, this is not always the case, and most debtors will not have to pay taxes on the forgiven debt.

Can Debt Settlement with New Era Debt Solutions cause a lawsuit?

Creditors have the legal right to sue for non-payment of a debt, but such lawsuits are much less common than aggressive credit collectors may lead you to believe. In most cases, creditors would rather work out a negotiated settlement amicably than spend more money taking a customer to court (with no guarantee of being able to collect on a judgment).

The worst-case scenario is that you could be legally required to pay a creditor’s outstanding debt balance in full. This could happen as a result of legal action taken by the creditor.

How do New Era Debt Solutions affect your credit?

Debt settlement can have a negative impact on your credit score for up to 7 years. This is because it lowers your credit score by 100 points initially, and then has less of an effect over time. However, the events that typically lead up to needing to settle debts (missed payments, etc.) will also affect your credit score negatively.

How to cancel New Era Solutions?

It’s easy to get out of a debt settlement contract with New Era Debt Solutions before you’ve made any payments. But once you’ve started paying, it’s likely that you’ve lost the funds sent to the company. So, it’s important to contact your bank and cancel any agreement that allows the debt settlement company to draft fees directly from your account.

Here are some steps to take to cancel your debt settlement program:

• Your debt settlement agreement is a binding contract between you and your creditors. Both parties are obligated to adhere to the terms of the agreement. Therefore, it is important to be aware that terminating the agreement prematurely may result in penalty fees. Some debt settlement companies may be willing to waive these fees in special circumstances.
• When you provide your debt settlement company and financial house with notice of your intent to exit a debt settlement contract, this doesn’t automatically trigger the process. You will still need to follow the specified cancellation process of the company. In most cases, you will receive a message with instructions on how to exit the contract. Unless stated otherwise, you should continue making your original monthly debt payments.
• The debt settlement company may request that you pay a specific amount as the last step to exiting the debt. Exiting the contract without making requisite payments may leave you in a legally undesirable state. 
• The next step after exiting your debt settlement contract is to meet with your creditors. You will need to inform them of your plans to repay the debt, and negotiate a new payment plan or make payments according to the original agreement. Any missed or owed payments will need to be made up.

Is New Era Solutions legit or a scam?

Debt settlement can be a tricky business, but with 22 years of experience and an A+ rating from the Better Business Bureau, you can trust that New Era Debt Solutions knows what they’re doing.

Debt settlement may not be right for everyone, so it’s important to do your research and read reviews before making a decision. Depending on your financial situation, debt settlement could have serious consequences for your future.

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