Dan Smith of New Era Debt Solutions Poses 14 Crucial Questions to Ask Debt-Settlement Companies

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Dan Smith, founder of New Era Debt Solutions, a debt-settlement company that helps people reduce their debt obligation, lists the top five things every person should always ask before settling on a debt-settlement company.

New Era Debt Solutions

The first question you should ask is if the company you are researching charges a fee before settlement.

“The first question you should ask is if the company you are researching charges a fee before settlement,” said Smith. “If the answer is anything but no, keep looking, as no debt-settlement company should charge you any fees at all unless or until your debt is settled. In fact, the Federal Trade Commission (FTC) made it a law that fees can only be collected after a settlement has been approved and a payment has been made.”

Second, ask if the company is an attorney-based debt-settlement operation. Initially, it might sound like this would be a good thing, when in fact these companies generally cost more and may take a lot longer to settle your debt. They also typically charge large upfront fees (the legality of which is in question) and as a result it takes longer for you to accrue enough money to reach your first settlement. “The entire process is prolonged, your settlement options are reduced and you ultimately pay much more,” said Smith.

Third, ask if they are an accredited member of the Better Business Bureau (BBB). “It is always a good idea to check with the BBB for the company’s rating and also their complaint history,” said Smith, whose New Era Debt Solutions company is rated A+ with the BBB and was recently honored by the BBB for having zero complaints over the last three years.

Fourth, Smith stresses always asking who will be working with you on settling your debt. Sales companies and work-at-home sales reps are quite common in the debt-settlement industry, and chances are good the person you are talking with will “sell” or pass you off to a different company to settle your debt.

“There are several downsides to this,” said Smith. “Oftentimes the company actually handling your debt settlement has no idea what promises have been made to you, nor any obligation to meet them. Similarly, the person who signs you up for the program has no control over how you or your situation is handled. Additionally, your confidential financial data is being passed on to another entity you know nothing about.”

Fifth, ask the company how long it has been in the debt-settlement business and how much debt it has settled. “Many companies rushed into the debt-settlement business over the last few years,” said Smith, who founded New Era Debt Solutions sixteen years ago, which has settled more than $200 million of debt and was named one of the Best Debt Settlement Companies for 2015 by The Simple Dollar. “Some companies don’t settle much debt at all, and young companies have very little experience. Always ask for proof of their experience.”

For the remaining questions every person should ask when looking for a debt-settlement company, please visit the New Era Debt Solutions website at http://www.neweradebtsolutions.com/the-truth-about-debt-settlement-14-questions-to-ask/.

About New Era Debt Solutions
The goal of New Era Debt Solutions is to help people eliminate their debt as quickly and inexpensively as possible. New Era employs debt-relief specialists, professional negotiators and support personnel, and works with clients in 18 states. New Era Debt Solutions does not charge any upfront fees. For more information, please call (800) 527-4421.

About the NALA™
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Tiffani Tendell