FAQs

A debt relief program is a process where a company (like Start New Financial) works on behalf of a consumer to negotiate or settle their unsecured debts. Because creditors understand that consumers facing a financial hardship may never be able to pay their debt in full, or perhaps decide to file for bankruptcy, it is often in the creditor’s best interest to settle the debt for less rather than getting no money at all.

The best way to know if you qualify for a debt relief program is to speak with one of our knowledgeable enrollment agents.  In the meantime, understand that a debt relief program is designed for anyone dealing with a financial hardship who is falling behind or having problems making minimum payments to their creditors.  Oftentimes, consumers who are considering bankruptcy will first explore the possibility of a debt relief program.

Generally, nearly every type of unsecured debt can be successfully negotiated.  Unsecured debt is one that is not tied to a specific material item that could be repossessed by the creditor.  Examples of a secured debt would be an auto loan or mortgage, which would not be eligible in our program.  Credit card debt, medical bills, department store cards, signature loans, and collection accounts are all types of debt that may be included in a debt relief program.

Our fee is typically 25% of the debt enrolled in your program and is this classified as a performance fee, which means the fee isn’t charged until we perform, i.e., settle a debt.  Start New Financial will not collect any fees until we settle an account, you approve the settlement, and payment is made to the creditor for the settlement.  In addition to settlement performance fees, there are other ancillaries, third party fees that are associated with the program, for check-by-phone banking fees that are associated with payments we schedule for settlements with your creditors.  Also, consumers are given the opportunity to enroll in a third-party legal insurance program, which independently charges a $30/monthly fee.  Such a program is optional and not required for engagement with Start New Financial.

Some are, some are not.  Start New Financial is a legitimate company that has helped tens of thousands of clients resolve hundreds of millions of dollars of debt.  Our company has an A+ rating with the Better Business Bureau and our team of credit negotiators is certified through the IAPDA (International Association of Professional Debt Arbitrators).  For further authentication of our work, check out the Results tab on our home page.

Paying off the full balance, bankruptcy, credit counseling, debt consolidation loan, or a home equity loan.

A debt relief plan reduces the balances on your creditor accounts.  Your debts are negotiated down, and you pay less than you owe.  The creditor forgives the remaining balance in a transaction called a settlement.  Debt consolidation combines all of your debt into one loan with a single monthly payment, usually with an interest rate.  Such a loan usually requires a higher credit score for approval.

In the course of business, Start New Financial has established contacts with major banks, collection agencies, and collection attorneys.  We will not enroll a creditor with whom we have not successfully negotiated.  Part of the enrollment process is to determine which of your creditors we can or cannot enroll.

The average program length is about 36 months, however, it mostly depends on the consumer’s ability to save adequate funds in their special purpose savings account.  The program length is an estimate and not a guaranteed time frame.  The more consistent the program participant is with their monthly program payments, the more reliable and accurate the estimated time to program completion.

Your estimated program length is likely 24-48 months, which means that is the estimated time it will take Start New Financial to resolve ALL of your enrolled accounts.  However, Start New Financial clients usually see their first creditor account settled within approximately 90 days of their first program payment.  From there, Start New Financial will settle the other accounts progressively over the remainder of the program term.

No, our debt relief program is not a loan program and not a program where minimum monthly payments are forwarded to your enrolled creditors.  For a creditor to be willing to accept less than what was originally borrowed, they must have a reason to do so.  A creditor receiving minimum monthly payments is not motivated to take less than the full balance.  Our debt relief program is designed for consumers who can no longer afford to pay their creditors the required monthly amounts.  Start New Financial will not make payments to your creditors until we have achieved a settlement with the funds you have accumulated in your special purpose savings account.

Receiving calls is normal when you are in a financial hardship and unable to make the required payments to your creditors.  It would happen whether you are in the program or not.  Creditors will call you to collect the full amount that is owed, and that is their right.  Conversely, you are not legally obligated to speak with your creditors.  While we will contact your creditors and provide your authorization to speak with us regarding your accounts, you may still be contacted directly by your creditors.  Should you choose to speak to your creditors, tell them the truth that you are suffering a financial hardship and unable to afford what they are asking you to pay.  Request that you prefer to receive communications in writing, and then feel free to forward our support team any written creditor correspondence.

The answer to this question depends on what your credit profile looks like at the time of your enrollment into the program.  A consumer with a strong credit profile who enters a debt relief program will see a negative impact on their credit score.  However, most consumers considering enrollment into a debt relief plan have a credit profile that is already being negatively impacted by either a poor payment history or high balance to limit ratios on nearly all their creditor accounts.  Our goal is to help you resolve your debt quickly, so that can start building a brighter financial future as quickly as possible.

Creditors are generally required to provide a 1099-C in the event of a forgiven or settled debt exceeding $600.00.  This does not necessarily mean that you will owe taxes on the forgiven portion.  In many cases, consumers can legally and ethically exclude forgiven debt from their income through the “insolvency exclusion” provided by the IRS code.  This exclusion means that your liabilities exceed the fair market value of your assets, or that you “owe” more than you “own”.  Understand that this information should not be construed as tax advice and that Start New Financial is not a licensed tax advisor.  Please consult with a tax professional regarding how this topic impacts your circumstances.

Yes, it is possible.  However, there are a few important questions to consider before making such a decision.  Do you have the time?  Do you have the knowledge?  Do you have the experience?  Although it is certainly possible for a consumer to negotiate his or her own debts, there are challenges.  Considering people’s already hectic schedules, many people simply do not have the time to undertake such a labor-intensive task as debt negotiation.  Also, creditors don’t necessarily make it easy to settle a debt, as they will regularly apply tricky and intimidating tactics that ultimately serve their best interests and their bottom line.   Without the guidance and support of an expert company like Start New Financial, the result will likely be higher settlement percentages (if at all), greater frustration, and more headaches.  Partner with Start New Financial and allow us to do the heavy lifting.