New Era Debt Solutions Review: Costs, Risks and Results

New Era Debt Solutions is a debt settlement company that helps people with overwhelming debt avoid bankruptcy by negotiating with creditors to reduce what you owe. The company has a long track record of success in the industry. But debt settlement is a big step. This review will help you decide if it’s the right company for you.

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Key Takeaways

• New Era Debt Solutions negotiates directly with creditors to reduce what you owe on unsecured debt. The company has been doing this since 1999 and has settled more than $275 million in debt for clients.

• The average client completes the program in about 28 months and settles accounts for roughly 52% of the balance before fees. New Era only charges a fee — 14% to 23% of enrolled balances — after it successfully settles a debt, so you pay nothing upfront.

• Enrolling means stopping payments on your accounts while you build savings in an escrow account. Most accounts need six to 12 months of deposits before negotiations can start, and missed payments will hurt your credit score during that time.

• Debt settlement is not right for everyone — it works best for people facing serious, ongoing financial hardship with at least $10,000 in eligible unsecured debt. If you can still make minimum payments or have strong credit, a debt consolidation loan or debt management plan (DMP) may be a better fit.

Summary generated by AI, verified by MoneyLion editors

New Era Debt Solutions: At a Glance

• New Era’s founders have been in business since 1999, when they opened their financial consulting firm under the name DTS Financial. 

• They opened New Era in 2007 to focus strictly on debt settlement. 

• DTS/New Era has settled over $275 million in debt since 1999. 

• Headquartered in California, New Era serves 46 states and Washington, D.C., and it has physical locations in many major metropolitan areas.

• New Era’s debt negotiating teams include attorneys and other experts, and it assigns an account management team to every client.

• The company has been accredited by the Better Business Bureau (BBB) since 2001.

How New Era Debt Solutions Works

Here’s how New Era Debt Solutions works to settle your debt:

• A debt specialist analyzes your debt and explains your options.

• If you’re approved and decide to move forward, New Era will assign you an account management team that includes a debt counselor, and will reach out to your creditors.

• New Era will collect one payment from you each month and deposit it into an escrow account. Although you’ll own the account, New Era will manage it for you.

• New Era’s negotiators will try to settle your accounts for less than you owe once you have enough money in escrow to make lump-sum settlement payments.

• If New Era successfully settles an account, it’ll bill you for its fee.

• New Era will continue to process monthly payments until your debt is fully repaid.

Key Features of New Era Debt Solutions

Learn about the key features you’ll encounter if you work with New Era to settle your debts.

Eligible Debt Types

Debt settlement is for unsecured debt – that is, a debt with no collateral. Types of debt that might be eligible for settlement include:

• Credit cards

• Personal loans

• Private student loans — those not backed by a federal agency

• Unsecured lines of credit

• Medical bills

Settlement Process

Debt settlement takes time, but the process is straightforward.

1. Request a debt analysis by calling New Era or filling out a request form on its website.

2. After consulting with a New Era debt specialist, decide whether to apply for the program.

3. Once you’ve applied and been approved, you’ll stop paying on the credit accounts you want to settle and instead make a single monthly payment into an escrow account.

4. When the savings account has enough money to potentially settle your debt, New Era will take over management of your enrolled credit accounts and start negotiating settlements with the creditors.

5. You’ll remain in the program and continue making payments until you’ve paid off the debts. 

Client Tools and Support

New Era stresses that every client has a debt settlement team working on their behalf. The team includes a personal debt counselor for support.

In addition, New Era provides an online dashboard where clients can view account information and track their settlement progress.

Program Timeline

• New Era says it usually takes six to 12 months of monthly payments before their escrow accounts have enough money for settlement negotiations to begin.

• The average client completes their program in about 28 months.

How Much Does New Era Debt Solutions Cost?

New Era only collects a fee if it successfully settles a debt. The amount varies from 14% to 23% of the total balances enrolled in the program. 

Eligibility Criteria

New Era lists some eligibility criteria you’ll need to meet before it can help with your debt.

• Financial hardship: Debt settlement is for people who are overwhelmed by their debt due to a long-term unforeseen circumstance such as illness, job loss or divorce.

• Eligible balances: Debt settlement is for unsecured debt only. Credit card debt is especially well-suited for settlement.

• Minimum threshold: You’ll typically need at least $10,000 in eligible debt to qualify for New Era’s program.

• Eligible state: New Era operates in every state except Iowa, Maine and Oregon.

• Sufficient income: You’ll need enough income to make your escrow payments and ultimately pay off the debt. New Era recommends monthly payments of 1.5% of your eligible debt for payoff in about three years.

Who May Not Be a Good Fit

• If you're struggling but still making your payments on time, you may have better options than debt settlement.

• Debt settlement is also a poor fit for those who don't have enough income to make debt payments.

Pros and Cons of New Era Debt Solutions

New Era Debt Solutions can ease the burden of overwhelming debt, but it’s important to weigh the pros and cons before you enroll.

New Era Debt Solutions Reviews and Reputation

New Era Debt Solutions has an excellent reputation.

• In addition to an A+ rating from the BBB and 18 of the 19 clients who reviewed the company on the BBB website gave it five stars. 

• Reviews on Google and Trustpilot are similarly positive. The company has an average 4.9-star rating on Google, with 249 reviews, and an average 4.8-star rating on Trustpilot, with 445 reviews. 

Negative reviewers included a client who was unable to get a firm payoff date after increasing her monthly payment, and one for whom debt settlement didn’t produce savings. Another client gave New Era four stars but noted that the fees are steep. 

Risks of Debt Settlement

Debt settlement can have significant risks and negative consequences that could outweigh the potential benefits.

• Interest and late charges continue to accumulate during the six to 12 months it typically takes to escrow enough savings for negotiations to begin.

• There’s no guarantee that attempts to negotiate will be successful.

• The debt settlement process can negatively impact your credit and result in collection activities, including lawsuits.

• Forgiven debt might be subject to income tax.

New Era Debt Solutions vs. Other Debt Relief Options

Debt settlement is just one of several ways to get debt relief. Here's how some common debt relief options compare.

Good To Know

Bankruptcy can be a last resort, so it may help to review bankruptcy alternatives before deciding whether settlement is your best move.

Who New Era Debt Solutions Is Best For

New Era is best for people who:

• Have or are at risk of missing debt payments due to serious ongoing financial hardship

• Have primarily credit card and other unsecured debt

• Want to avoid bankruptcy

• Can afford to pay about 1.5% of total debt per month

When To Consider Another Option

Other debt-relief options are better choices for some people, including those who:

• Can afford to make at least their minimum payments

• Have strong enough credit to get approved for a debt consolidation loan

• Have primarily secured debt, federal loans or tax debt

• Hope to protect their credit

• Need credit counseling in addition to debt relief

• Might benefit more from bankruptcy

Final Verdict: Is New Era Debt Solutions Worth Considering?

• New Era Debt Solutions is worth considering if you want to avoid bankruptcy but are a poor fit for other, less-drastic options like a debt consolidation loan or DMP.

• The company is highly reputable and has a strong track record of successful settlement. Even so, it’s smart to see how it stacks up against the best debt settlement companies before signing up

• Although fees are steep and you’ll pay them on the entire enrolled balance, not just the settled debt amount, New Era won’t charge you unless it settles at least one debt. 

FAQs

Is New Era Debt Solutions legitimate?

Yes. It has settled over $275 million in debt since 1999. The company has physical branches in most major cities and has stellar BBB and client reviews.

How does New Era Debt Solutions work?

As a debt settlement company, New Era negotiates with your creditors to try to settle your debt for less than the full balance owed. It pays the debts with lump sums drawn from a savings account you fund with monthly payments. The process typically takes about 28 months. 

How much does New Era Debt Solutions cost?

Clients typically pay 14% to 23% of their total enrolled debt. New Era only collects a fee if it settles at least one debt.

Does New Era Debt Solutions hurt your credit?

Debt settlement, whether through New Era or another company, typically hurts your credit. In addition to accumulating many missed payments, you’ll pay less than you owe on successfully settled debt.

What types of debt can be enrolled?

Debt settlement is for unsecured debt only. Credit cards have the best chance of success, but personal loans, medical debt and other types of unsecured accounts can also be settled.

How long does debt settlement take?

The average New Era client finishes their program in about 28 months.

Is debt settlement better than debt consolidation? 

It might be better for some people. Debt consolidation loans can have a positive impact on your credit as long as you make on-time payments. But you need decent credit and the ability to make payments to qualify. 

Key Terms

• Debt settlement: A process in which a company negotiates with your creditors to accept less than the full balance you owe. It can reduce debt but often damages credit and may create a tax bill.

• Unsecured debt: Debt that isn't tied to collateral, such as credit cards, personal loans, medical bills and private student loans. Only unsecured debt is generally eligible for settlement.

• Escrow account: A bank account you own and fund with monthly payments that the company uses to pay lump-sum settlements. You can withdraw your funds at any time without penalty.

• Enrolled debt: The total balance you place in the settlement program. New Era bases its 14% to 23% fee on this enrolled amount, so you pay on the full balance, not only the settled portion.

• Charge-off: When a creditor writes off an unpaid account as a loss after months of missed payments. A charge-off can stay on your credit reports for about seven years.

Summary generated by AI, verified by MoneyLion editors

Sources

• Consumer Financial Protection Bureau. 2023. "What is a debt relief program and how do I know if I should use one?"

• Federal Trade Commission. "Debt Relief Services & the Telemarketing Sales Rule: A Guide for Business."

• IRS. 2026. "Topic no. 431, Canceled debt – Is it taxable or not?"

• BBB. "New Era Debt Solutions."

• Trustpilot. "New Era Debt Solutions."

• Consumer Financial Protection Bureau. 2024. "What is the difference between credit counseling and debt settlement, debt consolidation, or credit repair?"

Data is accurate as of June 9, 2026, and is subject to change.

Photo credit: damircudic / iStock