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Consumer Debt Options Threatened: “Consumer are the losers with a debt settlement industry in crisis.”

Press release just out from New Era Debt Solutions.

A whole lot of commonsense and truth in this release. Good job guys.

Consumer Debt Options Threatened: Consumer are the losers with a debt settlement industry in crisis.
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CONSUMER DEBT OPTIONS THREATENED
“Consumers are the losers with a debt settlement industry in crisis.”

People today are facing more immediate financial pressure than ever before. Jobs are vanishing, foreclosures are trending at record numbers and more people are turning to bankruptcy– needlessly.

What consumers lack today are real concrete solutions to help them deal with problem debt. The only legal solution that is approved in all states is bankruptcy. But what about consumers that don’t want to go bankrupt? What options do they have?

The first reaction that comes to mind is credit counseling as an alternative to bankruptcy. However, this solution does not truly represent consumers. It is not legally binding between the creditor, the consumer or the credit counseling group. Credit counseling groups are compensated by creditors for collecting money from consumers and returning it to creditors. Credit counseling does not represent the consumer in a fiduciary capacity at a time when people need independent advice the most.

Debt settlement allows the consumer to eliminate their financial liability in a mutually agreeable way for less than the full amount owed based on what they can afford. They can actually achieve results in a difficult situation, resolving their money troubles without bankruptcy. Debt settlement helps consumers avoid bankruptcy while returning a fair and negotiated amount to the creditor in a legally binding way. It helps the consumer to be represented by a true third party—the debt settlement company.

“I am extremely concerned for consumers,” said Alex Viecco, VP and co-founder of New Era Debt Solutions. “There’s been an influx of sub-prime mortgage lenders rushing on to the settlement bandwagon trying to make a quick buck.”

Today, many new debt settlement companies are appearing. These companies, many of dubious character and expertise, are creating problems that are leading to a patchwork of state legislation that will close or highly regulate debt settlement companies to protect consumers.

New Era Debt Solutions, a debt settlement company, wants federal regulators to proactively come out with legislation to regulate the debt settlement industry, protecting the consumer and forcing opportunist debt settlement companies off the map.

The debt settlement industry desperately needs one set of federal legislation that provides a clear framework of protective rules allowing consumers access to the valuable tool of debt settlement.

“We don’t want to stand by and watch consumers be robbed of access to debt settlement, leaving them with only bankruptcy as a real and final option to their debt problems,” said Dan Smith, President and CEO of New Era Debt Solutions. “People want to pay what they are able to afford and avoid bankruptcy. Debt settlement allows them to do that. The question is, will regulators and legislators step up and protect consumers by protecting debt settlement through common sense federal regulation? Our goal is to help create regulation for the sake of the consumers and the survival of a valuable industry.” You can contact us at 888-639-4050.

Consumer Debt Options Threatened: "Consumer are the losers with a debt settlement industry in crisis." by

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Damon Day

    Alex claims that he is concerned for consumers? Well his company New Era Debt Solutions has put out an “Anonymous” personal attack against me because I wrote a review about Dan Smith potentially misleading consumers to sell his program.

    This website claims to be issued by consumer advocates and is an attempt to scare people away from speaking with me and getting information that Debt Settlement sales people over at New Era, typically don’t want consumers to know. My question to Alex, is that if he is so concerned about consumers, then why is he lying to them and attacking me under the false pretense that some unknown consumer advocates feel I pose a threat to consumers?

    The attack is hosted on the New Era Debt Solutions web server.

    I am asking Alex and or Dan Smith to either put their name on the website and tell consumers who really wrote it, or take it down and stop lying to them. Here is the attack.

    Damon Day and Associates

  • http://DamonDay.com Damon Day

    Alex claims that he is concerned for consumers? Well his company New Era Debt Solutions has put out an “Anonymous” personal attack against me because I wrote a review about Dan Smith potentially misleading consumers to sell his program.

    This website claims to be issued by consumer advocates and is an attempt to scare people away from speaking with me and getting information that Debt Settlement sales people over at New Era, typically don’t want consumers to know. My question to Alex, is that if he is so concerned about consumers, then why is he lying to them and attacking me under the false pretense that some unknown consumer advocates feel I pose a threat to consumers?

    The attack is hosted on the New Era Debt Solutions web server.

    I am asking Alex and or Dan Smith to either put their name on the website and tell consumers who really wrote it, or take it down and stop lying to them. Here is the attack.

    Damon Day and Associates

  • Justin

    The emotional side of bankruptcy I can handle, the increase in cost in everything thereafter is what worries me. When I filed in 1999, my home insurance dropped me and left me searching quickly to find another company that was more expensive. Car insurance goes up, as well as any car/home/personal loans being extremely expensive. After about 5-7 yrs. things start to get better, but then I’ll be pushing 60 at that point. If there is any way for me to avoid it again then I will. The other problem these days is credit controlling everything, when looking for work, companies will look into everything about you and bad credit risk will come out. The job I have now may look at it and pass me up for promotion, the stigma put on people who file bankruptcy is still very bad, possibly getting worse though in the sense of real life situations as I’ve said earlier. It isn’t fair, but nothing in life is.

    • http://GetOutOfDebt.org Steve Rhode

      Debt settlement is also going to trash your credit report and lead to many of the same consequences. But it can be the right tool to use for some situations. There is no quick fix here.

      The issue here isn’t if you do or don’t go bankrupt, it is what will become of your credit score. And if you are unable to pay your bills, bad stuff is already headed your way.

      If you are worried about what your job might say, go and discuss your situation confidentially with HR and ask their advice. If businesses today dumped everyone that is struggling, they would not be able to function.

      Bankruptcy stigma does not mean that bankruptcy is not an appropriate solution for the situation. It just means that it sucks, which it does.

      Steve

  • Justin

    Having filed bankruptcy once in 1999, it will be off my report this September. I’m loooking to try anything short of it to resolve my debt problem. You’re right, it does look like New Era is the best out there, I just wish I knew of some real success stories.

    • http://GetOutOfDebt.org Steve Rhode

      Justin,

      I understand your emotional hesitation to do it again. I really do. But please evaluate the appropriate solution based on what it will achieve for you, not how you think it will make you feel.

      Don’t get me wrong, how you feel about a solution is really important but it would be not wise to consider a solution based solely on an emotional component or to consciously avoid a solution because you didn’t want to do that again. Sometimes to save people they need two open heart surgeries, even though they only want one.

      Steve

  • Justin

    Is there such a thing as a legitimate “Debt Settlement” company? All I ever hear about them is how they take all your money up front while you still get hounded by creditors, then they pay nothing out to your debts leaving you high and dry! I have not heard of one person yet that was helped by them.

    • http://GetOutOfDebt.org Steve Rhode

      Justin,

      I think the guys at New Era Debt Solutions are as good as you can get. I was very impressed by their honesty in their FAQs on their site. I have seen great things with lump-sum debt settlements for the right person, but monthly payment debt settlement programs certainly seem like an uphill battle.

      Steve

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