If you’re considering a fresh financial start, you’re likely asking: Can Start New Financial truly offer relief from my debts, and at what cost? This comprehensive review examines the efficacy and transparency of their services, breaks down fees, and assesses the impact on credit scores—the key information you need to start a new financial review with confidence and caution.
- BBB A+ Rating & Accredited
- $300 Million Debt Settled
- $8,000 Minimum Debt
Key Takeaways
Start New Financial offers debt settlement services with performance-based fees (typically 14% to 25% of enrolled debt) that aim to assist clients in avoiding bankruptcy, but the program’s fees could pose financial burdens, and not all debts are eligible.
Enrollment in Start New Financial’s program may initially negatively affect a client’s credit score, but successful completion can lead to long-term credit score improvement and a move toward being debt-free.
Clients must carefully evaluate the program’s suitability and risks, including state availability restrictions and the varying impacts on credit scores, with thorough research and potentially seeking advice from financial or legal professionals.
Key Takeaways
Start New Financial offers a ray of hope to those struggling with credit card debt, presenting a path to potential savings and an admirable success rate. Many customers appreciate their personalized approach and transparency when dealing with credit card companies. However, like any financial venture, there are potential risks to consider. Here are some important points to keep in mind:
Not all debts are eligible for enrollment
Their services may not be available in all states
Debt settlement, while promising, may not be a suitable strategy for everyone
Their debt relief services, designed for those experiencing financial hardship, come at a cost. Clients could expect to pay between $500 and $2,500, or approximately 14% to 25% of the total debt amount enrolled in the program. Hence, comparing potential savings against the cost of the service is a significant step.
Although the initial outcome of Start New Financial’s debt resolution program may adversely affect a client’s credit score, the prospects for long-term improvement are favorable. Upon program completion, many clients experience a significant improvement in their credit scores, often ranking in the top 10% compared to all consumers, and move towards a debt-free life.
Pros And Cons
As a debt consolidation company, Start New Financial’s mission is to assist clients in avoiding bankruptcy and achieving financial stability. Their services, which include debt settlement and consolidation, are tailored to assist individuals facing various debt challenges.
Despite the benefits, it’s important to consider the limitations of Start New Financial’s services. Here are some things to keep in mind:
Not all debts are eligible for enrollment
The services are not accessible in all states
The debt settlement process may affect clients’ monthly payments and credit scores.
The potential for a lowered credit score is a significant consideration for anyone thinking of employing Start New Financial’s services. Nonetheless, keep in mind that this impact is generally short-lived, and numerous clients report an improvement in their credit scores over time post-program completion.
Evaluating Start New Financial’s Debt Relief Services
Start New Financial, a debt relief company, offers debt relief services aimed at assisting consumers in avoiding bankruptcy by providing debt settlement. This involves negotiating with creditors to accept less than the full amount of debt. The company’s team of experienced debt advisors manages this process, aiming to secure the best possible outcome for clients.
Getting started with Start New Financial’s debt relief services is a straightforward process. The first step involves scheduling a complimentary consultation with the company’s team members. During this consultation, they will assess your financial situation, evaluate your eligibility for the program, and devise a tailored plan to assist you in overcoming your debt.
Before deciding to enroll in Start New Financial’s services, one must take into account the potential risks involved. It’s advisable for potential clients to conduct comprehensive research and seek guidance from financial advisors or organizations like the American Fair Credit Council.
Service Spectrum
Start New Financial offers the following debt relief services:
Debt settlement: negotiating with creditors to significantly reduce the client’s debt
Debt management: enabling clients to make a single, reduced monthly payment to the company
Free Debt Relief Plan for debt consolidation: includes a calculator to assist clients in evaluating the timeline for settling their debts
Nonetheless, bear in mind that not all debts qualify for their programs, and their services do not include tax, bankruptcy, accounting, or legal advice.
Program Eligibility Criteria
To qualify for Start New Financial’s program, a prospective client needs to:
Have a minimum of $7,000 in unsecured debt
Have the capacity to make a single consolidated deposit payment every month
Ensure that this payment is less than the combined payments they have been making to their creditors
Note that the program does not accommodate secured debts, such as those associated with collateral.
Before enrolling, clients must ensure they fully understand all provided program materials, as they contain important information, including the potential negative effect the program could have on one’s credit rating.
Transparency and Client Expectations
Start New Financial prides itself on its transparency. The company, along with its financial’s team members, offers the following advice to clients:
It does not guarantee specific debt reduction amounts or timeframes.
It advises clients to consult tax professionals for related inquiries.
It advises clients to consult bankruptcy attorneys for related inquiries.
Throughout the enrollment process, the company diligently assesses clients to ascertain if their services can lead to improved financial standing for the consumer, thereby establishing practical expectations for the client.
Unpacking Start New Financial’s Fee Structure
Comprehending the fees linked to a debt relief service is of utmost importance. Start New Financial operates on a performance-based fee structure. This means that payment is only required if the company successfully reduces your debt. Clients can expect to pay a fee calculated based on the total amount of debt enrolled in the program.
Performance-Based Fees
Performance-based fees are triggered by the success of the program in reducing the client’s debt. Start New Financial charges a performance-based fee of 25% for its debt relief program. Unlike upfront fees, clients are obligated to pay this type of fee only if the company accomplishes a reduction in their debt.
The performance fee is determined based on the client’s adherence to their monthly program deposits into settlement accounts. It typically ranges between 20% and 25% and is calculated based on the debt enrolled in the program.
Additional Costs
In addition to the performance-based fee, clients may encounter additional third-party fees when utilizing Start New Financial’s services. These could include:
Monthly maintenance fees imposed by banks
Flat fees per transaction levied by third-party processors
Additional charges like chargeback fees, setup fees, and PCI compliance fees.
Start New Financial ensures that clients are informed about these potential additional costs by refraining from imposing any fees until the enrolled debts are successfully settled to the client’s full satisfaction.
The Impact of Start New Financial on Credit Scores
One of the primary concerns for anyone considering debt settlement is the potential impact on their credit score. Start New Financial’s debt settlement service can have a substantial adverse effect on credit scores, potentially lowering them by 100–110 points. This negative impact may persist for up to 7 years.
Credit Implications
Debt settlement typically has a negative impact on credit scores. The severity of the impact is influenced by various factors, including the individual’s credit condition before settlement.
Start New Financial’s debt settlement service is likely to lower credit scores as it involves paying less than the agreed amount, which is viewed unfavorably by credit bureaus.
Recovery Over Time
Though the initial impact on credit scores may seem intimidating, bear in mind that credit scores have the potential to rebound over time. After availing of Start New Financial’s services, the timeframe for observing enhancements in credit scores post-debt settlement could range from 6 to 24 months, contingent upon individual credit history and financial circumstances.
As customers exhibit responsible handling of new debt, their credit scores may recover and potentially surpass their pre-settlement levels.
Customer Experiences with Start New Financial
Customer experiences with Start New Financial are diverse. Some clients have reported satisfaction with the settlement of accounts after only one payment and appreciation for the customer service provided, while others expressed dissatisfaction, alleging it to be a scam.
Positive Testimonials
Positive reviews often highlight customers’ sense of being well looked after and their endorsement of the company’s services. For instance, some clients noted that they began receiving settlement offers within as few as 5 months after starting with Start New Financial, indicating quick and effective account settlements.
Others commended the company’s customer service team in Grand Rapids for its transparency and responsiveness.
Addressing Complaints
Start New Financial addresses customer complaints by:
Resolving 100% of the negative reviews that they received
Offering to speak directly with the customers to resolve issues
Asking for client IDs to address specific concerns, showing their willingness to assist where possible.
Comparing Start New Financial to Other Debt Relief Companies
Start New Financial stands out from its competitors with:
Its unparalleled level of personal service provided by new financial team members
Performance-based fees without upfront charges
A debt relief program that actively negotiates with creditors to significantly decrease the client’s debt burden.
However, like Start New Financial, other debt settlement companies also engage in negotiations with creditors to enable clients to make a reduced lump sum payment that is lower than the total amount owed.
Unique Selling Points
Start New Financial’s personalized debt relief plans stand out due to their provision of a complimentary debt relief plan along with a rapid calculator for immediate outcomes. Additionally, their credit counseling services distinguish themselves through a comprehensive assessment of your financial situation conducted by certified credit counselors, as well as efforts to secure lower interest rates for you.
Navigating Cancellation and Aftercare
Should you decide to discontinue your service with Start New Financial, the company has a cancellation process in place. Clients can initiate the cancellation of the company’s service by contacting their Customer Loyalty Group at 888-768-4767 to begin the cancellation process.
Additionally, upon termination of service with Start New Financial, the client will be refunded all funds from their Dedicated Savings Account, with deductions for banking and earned settlement fees, as no cancellation fees are applicable.
Cancellation Process
To initiate the cancellation process with Start New Financial, you should contact their customer service at (800) 320-9083. To cease payments to Start New Financial when canceling your service, it is recommended to contact the company to revoke the payment authorization or to directly remove the automatic payment permission from your bank account.
Post-Cancellation Considerations
After canceling Start New Financial’s services, you may face some challenges, such as:
Debt relief restructuring
Customer complaints
Debt relief service scams
Sudden loss of access to bank accounts
Difficulties for small businesses in making payroll
Seeking the counsel of a debt settlement attorney could prove advantageous should you experience any complications subsequent to canceling Start New Financial’s service.
Start New Financial’s BBB Insights
Start New Financial has been awarded an A rating by the BBB, demonstrating its commitment to maintaining high standards of business conduct. This rating reflects the company’s reliability and trustworthiness in the financial industry. BBB Business Profiles typically encompass a three-year reporting period. This provides a comprehensive overview of the company’s performance and history over a substantial timeframe. The nature of complaints and a firm’s responses to them are often more important than the number of complaints.
Start New Financial has demonstrated effectiveness in addressing customer complaints, as reported by the Better Business Bureau (BBB).
BBB Rating and Accreditation
Start New Financial holds a BBB accreditation. Key factors that impact the BBB rating for a company include the company’s history of handling consumer complaints, the size of the business, and the information obtained by BBB about the business.
Business Response to Complaints
The company’s procedure for addressing customer complaints is available on the Better Business Bureau (BBB) website, where customers have the ability to view and file complaints.
Start New Financial addresses customer complaints by:
Resolving 100% of the negative reviews that they received
Offering to speak directly with the customers to resolve issues
Asking for client IDs to address specific concerns, showing their willingness to assist where possible.
Legal and Tax Considerations with Start New Financial
When settling debts with Start New Financial, clients should be aware of several important tax and legal considerations. It’s advisable for clients of Start New Financial to consult a professional tax advisor in order to comprehend the potential tax consequences associated with debt settlement. Clients should prioritize the provision of accurate and comprehensive information when utilizing Start New Financial’s services.
Understanding the legal obligations tied to starting a financial startup and devising a robust financial strategy is essential.
Tax Professional Recommendations
In the majority of instances, any forgiven debt will be subject to income taxes. If $600 or more of your debt is forgiven or canceled, taxes will need to be paid on the forgiven amount. Debt settlement may impact tax filing by elevating your taxable income, as the forgiven amount is recognized as income by the IRS.
The role of a tax professional in advising on debt settlement includes:
Assisting in understanding the tax consequences of debt settlement
Navigating the complexities of tax laws and regulations
Offering guidance on developing a financial plan to address the overall financial situation.
Bankruptcy Attorney Consultations
Consulting a bankruptcy attorney can provide valuable insights and guidance. They can:
Explain the bankruptcy process
Discuss potential benefits and drawbacks
Provide advice on the necessary documentation and associated costs
Address specific concerns such as whether you will be able to erase all of your debt in bankruptcy, whether you will lose property, the costs involved, and which bankruptcy chapter you should file.
How To Cancel Start New Financial’s Service
If you decide to discontinue your service with Start New Financial, you will need to contact the company directly. They can be contacted via their customer service at (800) 320-9083. To cancel your service with Start New Financial, you will need to get in touch with their company directly. To cease payments to Start New Financial when canceling your service, it is recommended to contact the company to revoke the payment authorization or to directly remove the automatic payment permission from your bank account.
Upon cancellation, you may encounter repercussions such as debt cancellation, negative marks on your credit report, and potential legal consequences. However, it is feasible to terminate the program at any time without incurring any penalty and subsequently reactivate services if desired.
Summary
In conclusion, Start New Financial offers a range of debt relief services with a focus on transparency, customer satisfaction, and performance-based fees. Their services are tailored to the individual client’s needs, with the aim of reducing overall debt and helping clients regain control of their financial situation. However, it’s important to remember that not all debts are eligible for their program, and there may be potential risks and impacts on your credit score.
While the company has received mixed reviews, they have demonstrated a commitment to addressing customer complaints and improving their service. As with any financial decision, it’s crucial to do your own research, consider all options, and consult with financial and legal professionals before deciding on a debt relief program. If you’re struggling with debt, Start New Financial could be one option to consider on your journey to financial freedom.
Frequently Asked Questions
Will debt settlement ruin my credit?
Yes, debt settlement will likely have a negative impact on your credit score, but you can work to improve it over time through responsible financial management. Consider seeking guidance from a credit counselor for personalized advice.
What does Start New Financial do?
Start New Financial provides personalized debt resolution packages as an alternative to bankruptcy, helping individuals become debt-free faster and with less impact on their credit score.
How long does it take to improve a credit score after a debt settlement?
It typically takes 6–24 months for your credit score to improve after debt settlement, but some individuals have seen improvements in as little as three months.
Does Start New Financial offer a free consultation?
Yes, Start New Financial offers a free consultation to assess financial situations, evaluate program eligibility, and devise a tailored plan to overcome debt.
What types of debt are not eligible for Start New Financial’s services?
Start New Financial does not cover debts that include collateral, such as auto loans, mortgages, or federal student loans. Therefore, these types of debts are not eligible for their services.