New Era Debt Solutions scored some MAJOR points with nationally syndicated columnist Terry Savage in an article published today.
Terry says she put New Era, a debt settlement company that collects most fees when the debt actually settles, to the test.
By strange coincidence that very same week, I received an e-mail from a man called Peter, who explained that he had roughly $27,000 in credit-card debt and couldn’t even make the minimum monthly payments. However, he was expecting a tax refund of approximately $10,000. Peter wanted my opinion on using a debt negotiation service.
I gave him my negative views and warnings, but I also remembered my recent conversation with Alex Viecco. Would he be interested in experimenting? I offered to put him in touch, while warning him of the dangers to his credit should the process go awry.
After discussing the process with New Era, Peter decided to go ahead with the debt negotiation program. With the permission of both, I followed the progress over the next few months. Of course, this wasn’t a fair test of the service, because the company knew that I would be monitoring the results.
The results were quite a surprise to me, to say the least.
Peter entered the program with $26,700 in debt on one credit card. He initially paid $800 as a retainer fee (of which, $400 was eventually returned to him).
New Era obtained a settlement that required Peter to pay only $7,185 to the card issuer, and an additional $3,605 in settlement fees, plus the $400 reduced deposit.
Peter saved — or, more accurately, avoided paying — $15,510. His credit report will show the debt as “settled for less than full balance.”
His reaction: “What a relief! I was fairly skeptical, and I know you were too,” he told me. “But the beauty of these guys was they didn’t take any money up front. It took them several months but they were right in saying that you have to wait a while to get a good settlement.”
So it worked for Peter — because he had the cash upfront to make a quick offer to the card issuer. – Source
The one thing the article did not mention is if Peter was left with a lingering tax liability from the forgiven debt.
I’ve done similar debt settlements like this before when people have cash on hand. The key here is the client appears to have been well qualified and ready to settle as opposed to someone trying to save funds over a long period of time.
Congratulations New Era for the PR coup.
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