New Era Debt Solutions is a debt settlement company for individuals who wish to avoid filing personal bankruptcy by negotiating a mutually agreeable settlement on your unsecured debts. As most other debt settlement programs New Era Debt Settlement Program is designed to get you out of debt in less time than debt consolidation or credit counseling, with clients paying back only a portion of the balance, usually 50% or less through their program.
Here are some quick facts about New Era Debt Solutions:
Company Founded: 1999
Years In Business: 10+ years
Number of Employees: 35
BBB Rating: A+
Fee Information: Performance-Based Fee Model and debt settlement results. (Success Fee)
Monthly Payments Available?: Yes, third party escrow company recommended.
Source of Funds: Client payments
Fee Structure: New Era charges 17% of the account balance that they negotiate on your behalf. Example: if you owe $5,000 on a particular account, and we negotiate a debt reduction to $2,000, that means we’ve saved you $3,000. Our negotiation fee would then be 17% of the starting balance, or $850. So you would pay $2,000 to the creditor, $850 to New Era.
Avg. % Settlement of Amount Owed: On average, 63% of the account balance is settled, customer end up paying 37%
Minimum Debt Required: $10,000
About the Company
New Era claims has settled over $167,066,280 in consumer debt since they started in 1999. The information provided describes a debt settlement company who assists their clients by negotiating debt on your behalf. This company is a member of the International Association of Professional Debt Arbitrators and the new AACC (American Association of Credit Counselors)
American Association of Credit Counselors
New Era Debt Solutions is a founding member of the new AACC (American Association of Credit Counselors). The AACC was started up again last year to respond to the new FTC regulations on the Debt Settlement Industry as well as for the purpose of bringing back integrity and responsibility to the debt relief industry as a whole.
As a founding member, it’s good to know that New Era is customer focused and works closely with regulators and legislators to ensure integrity within it’s own business model.
Once enrolled in the New Era Debt Settlement Program their specialists will negotiate with your creditors to lower your debt allowing you to pay back only a portion of the balance, usually 50% or less. The company is forthcoming in offering information regarding the possibility of lawsuits and the damage that debt settlement has on your credit.
New Era has a performance based fee structure with you paying a fee for each debt settled versus a specific fee upfront which is somewhat common with several settlement companies.
So you only end up paying when your debt is settled, never before. There are no administrative or setup fees. While New Era has utilized a performance-based model for over a decade, the FTC has made this a requirement effective October 27, 2010.
The Performance-Based Fee Difference
New Era operates on the simple concept that if they can’t settle your account, you don’t pay. In addition, their negotiators are paid based on their averages (the percentage of debt the client pays), so the lower they average for the clients the better they get paid. This keeps their focus on the best settlement possible for the consumers.
My experience using this website was a pleasant one compared to some other companies I have reviewed. The website is professional in appearance with many different pages to gather information. The information contained was fairly forthcoming for a company in this industry listing most of the important facts that are relevant to debt settlement as a form of eliminating debt. That being said as with most debt settlement companies you will get the most information by contacting the company directly for a free consultation to see how the program would work in your specific situation.
Their Truth and Transparency section gives the reader a good sense that they are dealing with one of the few “good guys” in the industry. It covers topics like cost of the settlement program, average settlement amount, average length of stay in the program, satisfaction rate, etc.
If you have done business with New Era Debt Solutions, please post a comment below.