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With everything from cars to groceries being more expensive, it’s no surprise that people are taking on more debt. According to a report released by the Federal Reserve Bank of New York, credit card balances increased by nearly 5% during the fourth quarter of 2023.
If you’re struggling to pay down your credit card balances, a debt relief company like New Era Debt Solutions can be appealing. The California-based company has been around since 1999, and customer reviews are quite positive. According to the company, it can slash clients’ balances by as much as 50%.
Whether New Era Debt Solutions is a good option for you depends on the type of debt you have, your balance and how much money you can dedicate to debt settlement negotiations. In this review, learn about the company’s rates and services. All rates and fees are current as of March 22, 2024.
New Era Debt Solutions at a glance
- Eligibility & Requirements: No minimum
- Fees: 14% to 23% of the original debt amount
- Credit score impact: Not disclosed
- Ratings:
- BBB: 4.94 out of five
- TrustPilot: 5.0 out of five
- Savings: 52.23% (not accounting for fees)
- Time: 28 months
Who is New Era Debt Solutions good for?
As a debt settlement company, New Era Debt Solutions helps people negotiate with their creditors to settle their unsecured debt for less than they owe. It could be a good option if you have high levels of unsecured debt, such as credit card balances, personal loans or private student loans. Debt settlement is best for those who can afford to set aside money to build up a lump sum to offer during the settlement, or those who have friends or family willing to help out financially.
Who shouldn’t use New Era Debt Solutions?
Debt relief companies like New Era Debt Solutions are only for those who have unsecured debt. If you have issues managing secured debt, such as car loans or mortgages, the company can’t help you. And federal loans are also excluded from its program, so you’ll have to explore other options to manage those forms of debt.
The company isn’t available in all states; residents of Iowa, Maine or Oregon aren’t eligible.
| Pros | Cons |
| Can work with private student loans | Not available in all states |
| No added fees | Cannot help with all forms of debt |
| Substantial settlement reductions | Limited customer support hours |
How does New Era Debt Solutions work?
New Era Debt Solutions is a member of the International Association of Professional Debt Arbitrators (IAPDA), and it’s a well-known debt relief company. Through the company, you can enter into a debt settlement agreement. New Era Debt Solutions reviews your debt and, if you are an appropriate client, will negotiate with your creditors to come to a settlement. If the company is successful, you could settle your outstanding debt for a fraction of what you owe.
Types of debt New Era Debt Solutions helps settle
New Era Debt Solutions only works with borrowers who have unsecured debt, such as credit cards. If you have secured debt or federal student loans, those accounts aren’t eligible for debt negotiations.
| Debt settlement support | |
| Credit card | Yes |
| Student loans | Private student loans only |
| Personal loans | Yes |
| Store cards | Yes |
| Mortgages | No |
| Home equity loans or home equity lines of credit (HELOCs) | No |
| Auto loans | No |
How New Era Debt Solutions fees work
As with all debt settlement companies, New Era Debt Solutions cannot charge you upfront fees; they can only charge you a fee once a settlement is reached. With most companies, including New Era Debt Solutions, the fee is a percentage of the settled amount.
For example, let’s say you owe $10,000 in outstanding credit card debt. New Era Debt Solutions successfully negotiates a settlement for 50% of what you owe, so you only have to pay your creditors $5,000 to settle your debt. New Era Debt Solutions is paid a percentage of the settled amount; if the agreed-upon fee is 23% of the settled amount, you’d owe the company $1,150 for its services.
New Era Debt Solutions charges 14% to 23% of the debt settled amount.
How does working with New Era Debt Solutions impact credit score
For debt settlement to be successful, you must stop making payments to your creditors while New Era Debt Solutions negotiates for you. Because you aren’t making the required payments, those missed payments are reported to the credit bureaus, and your credit score will significantly decrease. However, that tradeoff can be worth it since you may be able to become debt-free sooner and at a lower cost than if you continued making payments on your own.
New Era Debt Solutions ratings
Debt relief companies often have poor client reviews, but New Era Debt Solutions is the exception. It has stellar customer reviews on several platforms, including the Better Business Bureau and TrustPilot. In reviews, customers praise the company’s effectiveness, its responsive customer service team and overall results.
| New Era Debt Solutions Ratings | |
| BBB | 4.94 out of five |
| TrustPilot | 5.0 out of five |
| ConsumerVoice | 8.9 out of 10 |
How much can I save by using New Era Debt Solutions?
New Era Debt Solutions said its clients reduce their balances by about 52%, before taking into account fees.
How long does New Era Debt Solutions take to settle debt?
According to the company, it takes an average of 28 months to successfully settle clients’ debt.
Other services New Era Debt Solutions offers
New Era Debt Solutions only offers debt settlement services. Other types of debt relief, such as debt consolidation, are not available.
Are their risks with settling debt with New Era Debt Solutions
Although New Era Debt Solutions has a strong reputation, there are some downsides to debt settlement and the company:
- Fees: Debt settlement fees can be substantial, negating some of the value of the debt settlement. With New Era Debt Solutions, the fee ranges from 14% to 23% of the settled debt.
- Tax consequences: If New Era Debt Solutions is successful in negotiating your debt, there may be tax consequences. When a creditor agrees to a smaller amount, the discharged amount could be treated as taxable income, so it’s a good idea to contact a tax professional to discuss the impact of debt settlement on your taxes.
- Credit damage: With debt settlement, you have to stop paying your creditors to give New Era Debt Solutions time to negotiate your balance.
New Era Debt Solutions reputation for settling debt?
In customer reviews, past clients praised the company’s responsive communication, empathetic customer service representatives and effectiveness in settling debt.
However, New Era Debt Solutions doesn’t have a completely spotless record; previously, Oregon’s division of financial regulation conducted an investigation into the company and found that New Era Debt Solutions violated the Oregon Debt Management Service Provider Law, collecting excessive fees from customers.
Compare New Era Debt Solutions alternatives
In general, New Era Debt Solutions stand out from other debt settlement companies because of its lower-than-usual fees and outstanding customer reviews. It has the highest customer satisfaction ratings on major review sites, with ratings of 4.9 or better.
| Free debt analysis | Debt settlement | BBB rating | TrustPilot | Fees | |
|---|---|---|---|---|---|
| Current Selection New Era Debt Solutions |
Yes | Yes | 4.94 out of 5 | 5.0 out of 5 | 14% to 23% |
| National Debt Relief | Yes | Yes | 4.73 out of 5 | 4.73 out of 5 | 15% to 25% |
| CuraDebt | Yes | Yes | 4.8 out of 5 | 3.3 out of 5 | Not disclosed |
| Freedom Debt Relief | Yes | Yes | 4.56 out of 5 | 4.6 out of 5 | 15% to 25% |
| Current Selection New Era Debt Solutions |
14% to 23% |
|---|---|
| Yes | |
| Yes | |
| 4.94 out of 5 | |
| 5.0 out of 5 | |
| National Debt Relief | 15% to 25% |
| Yes | |
| Yes | |
| 4.73 out of 5 | |
| 4.73 out of 5 | |
| CuraDebt | Not disclosed |
| Yes | |
| Yes | |
| 4.8 out of 5 | |
| 3.3 out of 5 | |
| Freedom Debt Relief | 15% to 25% |
| Yes | |
| Yes | |
| 4.56 out of 5 | |
| 4.6 out of 5 |
Is New Era Debt Solutions right for you?
If you have accrued high-interest unsecured debt due to unexpected hardships, such as credit card bills after a job loss or medical emergency, debt settlement could help you get out of debt faster and save money. New Era Debt Solutions has strong customer satisfaction reviews, and it claims it can slash customer balances by about 50%. If you can afford the settlement payments and can weather any changes to your credit in the short-term, New Era Debt Solutions could be an effective tool.
However, it’s not for everyone. If you have secured debt or have spending issues, debt settlement won’t be effective. Working with a debt counselor from a non-profit credit counseling agency and discussing other options like debt management plans or bankruptcy may be a better idea.
Frequently asked questions
Is New Era Debt Solutions legit?
New Era Debt Solutions is a legitimate, reputable company that has been in operation since 1999. It’s highly regarded, with positive reviews from customers on major review sites.
How do I reach New Era Debt Solutions?
New Era Debt Solutions is reachable via phone or its secure messaging platform. Customer support is available Monday through Saturday from 7:00 a.m. until 8:00 p.m. PST.
What are New Era Debt Solutions’ credit card debt requirements?
Unlike other debt settlement companies, New Era Debt Solutions doesn’t have a minimum or maximum credit card balance limit. You can qualify for assistance regardless of your balance.
