Note: we are an independent blog. Our content doesn't constitute financial advice. We strive for accuracy, but please always cross-check inflation numbers directly with the BLS. We may receive compensation from some services and products reviewed on this site (learn more).
Select Page
Amine Rahal
Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.
If you owe back taxes or are dealing with liens, levies, or a looming audit, you will see a lot of titles in your search for help: tax debt lawyer, enrolled agent, CPA, and “tax relief specialist.” The goal of this guide is to explain what a tax debt lawyer actually does, how the role differs from other practitioners, how to choose the right professional for your situation, and a practical shortlist of firms to consider. I keep this neutral and focused on what matters most for outcomes.
What is a tax debt lawyer and what do they do?
A tax debt lawyer is an attorney who focuses on tax and IRS controversy and collections. Their core responsibilities include:
Representing you before the IRS and state tax authorities
Stopping or releasing levies and garnishments when facts support it
Getting you compliant by filing or amending missing returns
Preparing and submitting Offers in Compromise when you qualify
Requesting penalty abatement and handling reasonable cause arguments
Navigating audits and appeals
Advising on business payroll tax issues and trust fund recovery exposure
Protecting attorney-client privilege and giving legal advice when disputes escalate
Note that you do NOT always need a lawyer. Enrolled Agents (EAs) and CPAs are licensed to represent taxpayers before the IRS and resolve most collection matters. Where lawyers are critical is when you need legal strategy, negotiations may lead to appeals or litigation, there is criminal exposure, or your case is complex and multi-jurisdictional.
How to choose the right professional
Use this checklist before you sign an engagement letter.
Match credentials to your problem
Missing filings and a straightforward payment plan can be handled by an EA, CPA, or attorney.
Complex audits, aggressive collections, payroll tax, or potential criminal issues favor a tax attorney.
Meet the person who will actually work your case Ask for the name and license of your primary representative and a direct line or email. If you only speak to sales staff, pause. That’s a red flag.
Insist on a written plan and flat scope A good engagement letter spells out the phases: investigation and transcripts, compliance cleanup, resolution strategy, and follow-through.
Understand fees and refund policies Many firms bill a flat fee by phase. Ask what is included, what triggers add-on fees, and how you can cancel.
Check for transparency and cadence You should receive regular updates, access to a secure document portal, and realistic timelines. Avoid guarantees of “pennies on the dollar.”
Verify ethics and standing For attorneys, check state bar records. For EAs, confirm status through the IRS directory. Look for a complaints process and professional liability coverage.
Evaluate fit and expectations The best indicator of success is whether the firm aligns with IRS standards, not whether the salesperson sounds confident.
The typical resolution process
Discovery: Signed authorization, transcripts pulled, deadlines identified
Compliance: Unfiled returns prepared and submitted; current withholding or estimates fixed
Financials: Budget built to IRS Collection Financial Standards to determine eligibility
Submission: Installment plan, hardship, or Offer in Compromise filed and negotiated
Monitoring: Notices handled and reminders set to keep you compliant
Pricing, timelines, and what is realistic
Now, tax debt attorneys don’t work the same way as debt settlement or relief companies (e.g.: New Era Debt Solutions, CuraDebt, National Debt Relief, etc). They charge flat fees or hourly fees. Ask for their detailed pricing schedule!
Pricing: Many individual cases fall into tiered flat fees that reflect complexity. Multi-year or business payroll tax files cost more. Hourly billing is common for audits and appeals.
Timelines: Simple payment plans can be weeks. Offers in Compromise often take months. Expect back-and-forth with the IRS.
Realistic outcomes: Most cases end in a payment plan or hardship, with penalties reduced when the facts support it. Offers in Compromise are approved when the numbers fit the program rules, not because a firm promises one.
11 Tax Debt Attorneys to Consider
Below is a practical, neutral list of firms and service models. I rank Five Star Tax Resolution first for readers who want a balanced, practitioner-led approach with clear communication. I also include other paths that might fit different needs. This is not an exhaustive list and not a guarantee of results. Always interview more than one provider.
What they do well: Practitioner-led files, clear scopes, focus on compliance first, and steady communication so you are not guessing where your case stands. Suitable for back taxes, levies, liens, installment agreements, hardship, offers, and audits. Best for: Individuals and small business owners who want a named licensed rep to run the case and a written plan by phase.
#2. Local Tax Attorney (solo or boutique) — Best for complex legal strategy
What they do well: Hands-on counsel, local knowledge, and direct attorney access. Strong fit for audits, appeals, payroll tax, and state-specific issues. Best for: Cases that may escalate legally or where you want in-person meetings.
#3. Enrolled Agent practice — Best for cost-effective collections work
What they do well: Daily IRS collections experience, efficient transcript work, and practical solutions based on standards. Best for: Compliance cleanup, payment plans, hardship requests, and many offers.
#4. CPA firm with controversy team — Best if you also need tax prep and planning
What they do well: Integrates bookkeeping, tax return preparation, and resolution under one roof. Best for: Ongoing business clients and individuals who want holistic tax management.
#5. National tax relief firm — Best for scale and extended availability
What they do well: Large staff, intake speed, and coverage across jurisdictions. Tax Relief Advocates is an example of such a firm if you need some ideas. Best for: High-volume processing needs and straightforward cases where you prefer larger teams.
#6. State-focused tax counsel — Best for state revenue department issues
What they do well: Deep familiarity with a specific state’s procedures, settlement units, and appeals channels. Best for: Sales and use tax, state payroll tax, franchise tax, and state liens.
#7. Payroll tax specialist — Best for 941 and trust fund exposure
What they do well: Navigates trust fund recovery penalty exposure and business cash-flow workouts. Best for: Employers behind on payroll deposits who need triage and a plan.
#8. Audit and appeals boutique — Best for examination disputes
What they do well: Evidence gathering, reasonable cause narratives, and appeals brief writing. Best for: Field or office audits, exam reconsiderations, and penalty defense.
#9. Low-income taxpayer clinic or legal aid — Best for qualifying taxpayers
What they do well: Free or low-cost representation for eligible individuals. Best for: Qualifying low-income taxpayers facing collections or audits.
#10. DIY with IRS tools — Best for small balances and confident filers
What it offers: Online payment agreements, transcript access, and basic hardship requests. Best for: Smaller, straightforward balances where you are comfortable managing forms and deadlines.
#11. Business workout consultant with tax focus — Best for multi-creditor situations
What they do well: Parallel negotiations with lenders, vendors, and tax agencies to stabilize cash flow. Best for: Businesses that need a broader restructuring plan along with tax resolution.
Questions to ask any firm before you hire
Who will be my licensed representative, and how do I contact them directly
Can I see a written scope and flat fee for each phase of work
Based on my transcripts and financials, what are the realistic outcomes
How often will you update me, and what portal or system will we use
What is excluded from the fee, and how do changes in scope get approved
What is your cancellation and refund policy
How will you help me stay compliant so I do not default an agreement
Documents to prepare before the first call
All IRS or state notices and prior agreements
List of unfiled years and recent filed returns
Two to three months of bank statements and pay stubs
A monthly expense breakdown and any extraordinary expenses
For businesses: recent P&L, payroll records, and sales tax filings
Red flags to avoid
Guarantees of “pennies on the dollar” or offers without a financial analysis
Pressure to sign the same day without a written plan
No access to the licensed practitioner assigned to your file
Vague or open-ended fees without a scope
Refusal to discuss IRS standards and how your case fits them
Overly “salesy” team that isn’t willing to hear details about your case
Bottom line
A tax debt lawyer can be the right choice when your situation carries legal risk, involves complex audits or appeals, or you want privilege and attorney-level advocacy. For many collection cases, an EA or CPA can also deliver excellent results. The key is fit, transparency, and a disciplined process.
If you want practitioner-led guidance with steady communication and a structured plan, Five Star Tax Resolution is my first place to interview. I still encourage you to speak with at least one local attorney or EA as a second opinion, compare fees and scope, and choose the team that explains your options clearly, sets realistic expectations, and puts everything in writing.
Disclosure: The information on this page is for education only and is not financial, investment, or tax advice. CPIInflationCalculator.com may earn commissions from partner links. Precious metals carry risk, including loss of principal. Past performance does not guarantee future results. Please consult a licensed financial advisor and a tax professional before acting.
If inflation is eating away at your portfolio, one investment you may have looked at is precious metals. Physical metals are known to be a good hedge against inflation and paper markets, but which precious metal should you invest in: gold or silver? In this article, we’ll cover the pros and cons of both to help you decide on your precious metal allocation. First, let’s look at this comparison table:
Factor
🟡 Gold
⚪ Silver
Market Value
Higher price per ounce
Much lower price per ounce
Volatility
Lower volatility, more stable
Higher volatility, more prone to price swings up or down
Liquidity
Highly liquid, easier to buy and sell in large quantities
Liquid but may have less demand in large quantities
Industrial Use
Limited use compared to silver
Significant industrial demand (electronics, EV, solar energy, tech, etc)
Supply and Demand
More stable due to its primary use as a store of value
Fluctuates based on industrial demand and economic cycles
Hedge Against Inflation
Strong hedge, tends to rise during infla
For me, the highlight of this table is how easy it is to store gold. An $80k gold bar can fit in your pocket, which makes it very convenient, cheap and easy to store. This factor greatly contributes to the fact that gold is an amazing store of value. However, this also makes it very difficult to “spend”. In a scenario where the dollar is worth nothing and you want to use your precious metals as currency for everyday expenses, silver might be a better choice.
Gold: The Classic Choice
Gold investing goes back thousands of years. Virtually every holy book mentions it. Now, why should you consider gold? For the following reasons:
Stability: Almost every known civilization has valued gold for thousands of years, and even now, people often see it as a safe haven during economic uncertainty. Its price tends to be more stable over time.
Inflation Hedge: History has shown that when the cost of living rises, gold prices often increase too. This makes it a good option for preserving your purchasing power during high-inflation times.
Global Acceptance: Gold is recognized and valued worldwide. If you ever need to sell, it’s generally easy to find a buyer, especially if you have recognized bullion coins and bars like American gold Eagles or Canadian Maple Leafs.
Less Volatility: Gold prices don’t fluctuate as wildly as some other investments, which can make it a calmer ride for investors.
Things to keep in mind:
Higher Cost: Gold is more expensive per ounce than silver. This means you’ll need more money upfront to invest. Also, each gold investment company has different fees, with some charging very high premiums. We encourage you to shop around. Look for a company with competitive prices for their gold coins and bars.
Slower Growth Potential: Because it’s more stable, you might see slower gains compared to more volatile investments.
Silver: The Dynamic Alternative
Silver is the most conductive metal on earth, which makes it needed in multiple industries, including Electric Vehicles, Electronics, Medicine and many more. Its various uses mean that its value goes beyond its investment potential. In a nutshell, you should consider investing in silver because:
Affordability: Silver is much cheaper than gold. Why is that helpful? It allows you to start investing with a smaller amount of money.
Industrial Demand: As we covered earlier, silver is used in many industries from electronics to EVs to solar panels. This can drive up demand and potentially its price.
Growth Potential: Silver prices can rise quickly, offering the chance for significant gains if the market moves in your favor. If being the key word.
Things to keep in mind:
Higher Volatility: Silver prices can swing more dramatically than gold. This means higher potential rewards but also higher risks.
Storage Space: Silver still costs more to ship and handle per dollar invested, and home storage is bulkier.
Premiums/spreads:silver often carries higher percentage premiums over spot for small coins/bars, so entry and exit costs can be higher than gold’s, even if unit prices are lower. Example:
At $2,400/oz, $80k ≈ 33 oz of gold (~1.0–1.1 kg).
At $30/oz, $80k ≈ 2,667 oz of silver (~83 kg), ~8 liters of metal volume.
Making Your Decision
Before deciding on whether you should buy gold or silver as a hedge against inflation, consider your goals and comfort level:
Are you looking for stability and a long-term store of value? Gold might be the better choice for you.
Are you open to taking more risk for the chance of higher returns? Then silver could be more up your alley.
Do you have a smaller budget to start investing? Silver allows you to enter the market without needing a large sum of money.
Now, how about both?
Diversification: Investing in both gold and silver can help balance your portfolio. Really! Gold can provide stability. Silver offers growth potential.
Hedging Bets: Holding both metals means you’re not putting all your eggs in one basket.
Final Thoughts
Ultimately, the choice between investing in gold vs silver depends on your individual financial situation, investment goals, and how much risk you’re comfortable taking on. It also depends on your understanding of the pros and cons of both metals. Do you believe the pros of one outweigh the pros of the other? There is no single right answer. Our final thoughts are:
Do Your Research: Look into current market trends, historical price movements, and forecasts.
Consult a Professional: It might be helpful to talk to a financial advisor who can offer personalized advice.
Think Long-Term: Precious metals are generally considered long-term investments.
As always, we would like to remind you that investing always comes with risks, and there’s no guaranteed return. But with careful consideration and planning, you can make a choice that aligns with your financial goals. Always speak to your financial advisor before making any investment decision. Understand that past results don’t guarantee future returns. Invest wisely. Also, given the inflation we had to endure in the last few years, make sure you analyze your financial situation fully to determine whether you should be investing in a new asset class like precious metals. You should NEVER use debt or credit to buy physical metals or invest in anything else. If you’re in high debt, we recommend looking at different debt relief options to see how you can alleviate your debt, before thinking about investing.
Gold vs Silver: Frequently Asked Questions
1) Should I dollar cost average or wait for dips?
I prefer a simple plan. Dollar cost averaging removes the guesswork. If you enjoy timing, you can blend DCA with small buys on pullbacks.
2) Coins, bars, or rounds. What is best?
Coins from major mints are the most liquid and carry higher premiums. Bars are cheaper per ounce and efficient for larger amounts. Rounds are private mint products that can be cost effective but may resell for a bit less.
3) Why do premiums over spot vary so much?
Brand, format, and demand drive premiums. Small pieces cost more per ounce to make and ship. In stressed markets premiums can spike even if spot is flat.
4) How do I verify authenticity?
Buy from reputable dealers, keep assay cards and serial numbers intact, and use basic checks like weight and dimensions. Higher end tools include XRF and specific gravity tests. When in doubt, ask a dealer to test.
5) Home safe, bank box, or depository?
Home storage is convenient but needs a real safe and insurance. Bank boxes are discrete but not insured by the bank. Depositories add professional security and insurance for a fee. I like splitting storage for redundancy.
6) How easy is it to sell quickly?
Gold is the easiest. Most large dealers post live buy prices and fund fast. Silver is liquid but bulkier to ship and may have wider spreads. Keeping popular products helps.
7) What moves gold and silver prices day to day?
Real interest rates, the dollar, central bank flows, and risk sentiment matter for gold. Silver adds an industrial layer, so manufacturing trends and solar demand can swing it harder.
8) Are ETFs a good substitute for physical?
ETFs add convenience, tight spreads, and easy rebalancing. Physical removes some counterparty risk and tracks spot after premiums. Some investors hold both to balance convenience and sovereignty.
9) Can I put metals in an IRA?
Self directed IRAs can hold certain bullion that meets fineness rules. Numismatic coins usually do not qualify. Custodian, storage, and trading fees apply. I suggest confirming details with the custodian before you buy.
10) How are taxes handled when I sell?
Tax treatment depends on jurisdiction and product type. Keep purchase records and talk to a tax professional about reporting and capital gains. I avoid giving specific tax rates here since rules change.
11) What percentage of a portfolio makes sense?
That comes down to risk tolerance and goals. I often see ranges from a small single digit allocation to a mid single digit allocation. The right number depends on your total plan, not a rule of thumb.
12) Is “junk silver” still useful?
Pre 1965 US 90 percent silver coins can be a low premium way to get fractional silver. Liquidity is good with dealers and many stackers know the melt value.
13) Does silver tarnish matter?
Tarnish does not change metal content. For aesthetics, store in dry, cool conditions with anti-tarnish strips or capsules. Bars and rounds are fine to leave as is if you plan to hold long term.
14) Are kilo bars better than 1 oz coins?
For low premiums per ounce, kilo bars win. For flexibility and resale, 1 oz coins win. Many investors mix sizes so they can sell in smaller chunks when needed.
15) What if premiums blow out during a crisis?
It happens. Retail supply can get tight and premiums climb. Having some metal on hand before you need it helps. ETFs can fill short term gaps if you accept market risk and fund rules.
16) Do central banks buy silver too?
Central banks focus on gold as a reserve asset. Silver demand is driven more by industry and investors, which is one reason silver is more cyclical.
17) How often should I rebalance?
Pick a cadence you will follow. Quarterly or annual checkups are common. If metal weights drift far from your target, trim or add to get back in range.
18) Are there ethical or sourcing labels to look for?
Many large refiners follow responsible sourcing standards from industry bodies. If this is important to you, ask dealers which refiners and programs they support.
19) Can I travel with coins or bars?
You can, but know your local reporting rules and security risks. I keep travel minimal and use insured shipping or a depository transfer when possible.
20) Will gold or silver help if inflation cools?
They can still diversify a portfolio even when inflation cools. Drivers shift toward real yields and risk sentiment. The long term case does not rely on inflation alone.
Optimal Debt Solutions (www.OptimalDebtSolutions.com) is a Debt Relief company offering a variety of services such as Debt Settlement, Credit Counseling, Debt Consolidation, and Negotiation Services. Their mission is to help Americans struggling with unsecured debt reduce what they owe and regain financial control. While they have a growing presence in the debt relief space, reviews for Optimal Debt Solutions are somewhat mixed, so make sure to explore all your options before committing.
#1 Rated Debt Relief Company in 2025?
Looking for the #1 Rated Debt Relief & Settlement Company in 2025? Our top recommendation isNew Era Debt. They’ve earned the most 5-star reviews among all the companies we evaluated and don’t charge upfront fees.
Service Available in: Most U.S. states (not available in OR, VT, WV, and CT)
Years in Operation: Since 2018
Legitimacy, Ratings & Reviews
Optimal Debt Solutions is a registered debt settlement company, but they are not yet an accredited member of the American Association for Debt Resolution (AADR). Their reviews vary depending on the platform.
BBB Rating: Not BBB Accredited
Google Reviews: 4.3/5 stars (87 reviews)
TrustPilot Reviews: 4.5/5 stars (223 reviews)
Yelp Reviews: 3.5/5 stars (14 reviews)
While many customers have reported positive experiences, particularly praising the firm’s support staff and program structure, others have cited slow response times and unclear communication. If customer experience and national reputation are your top priorities, we recommend you look into New Era Debt Relief first.
Services Offered by Optimal Debt Solutions
According to their website, here are the services offered:
Debt Settlement: They negotiate with creditors to settle debts for less than what’s owed.
Debt Consolidation: For those with qualifying credit, they may offer options to consolidate multiple debts into one monthly payment.
Credit Counseling: They assign a counselor to help you understand your debt situation and explore potential options.
Debt Management Plans (DMP): Customized repayment plans to simplify payments and reduce interest.
Financial Education: Resources to help consumers understand budgeting, savings, and credit management.
Pros 👍:
No Upfront Fees: They only charge after a successful settlement is reached.
Free Consultation: You can speak with a counselor to understand your options before enrolling.
Negotiation Expertise: Their negotiators reportedly have strong relationships with major creditors.
Cons 👎:
Limited Availability: Their services aren’t available in every U.S. state.
Not AADR Accredited: As of 2025, they are not listed as accredited members of the American Association for Debt Resolution.
BBB Status: They are not currently accredited by the Better Business Bureau, which may be a concern for some consumers.
Debt Types They Can Help With
Optimal Debt Solutions focuses on unsecured debts. Here’s a list of debt types they typically work with:
Credit Card Debt
Medical Bills
Personal Loans
Private Student Loans
Lines of Credit
Collections & Charge-Offs
They do not handle secured debts such as mortgages or auto loans, and they also do not provide direct legal advice or tax resolution services.
Final Thoughts
While Optimal Debt Solutions may be a good fit for some, we highly recommend you first look into our top-rated provider for 2025: New Era Debt Solutions. Their no-upfront-fee model, A+ BBB rating, and thousands of positive reviews make them the standout choice this year. They also may charge lower percentages than other debt relief companies, but we encourage to compare pricing from 2-3 companies before making a decision, as prices are known to change.
Frequently Asked Questions (FAQ) About Optimal Debt Solutions
1. Is Optimal Debt Solutions a lender?
No, Optimal Debt Solutions is not a lender. They do not issue loans or provide lending services. Instead, they help clients negotiate, settle, or consolidate existing unsecured debts through third-party financial tools and partners.
2. Can I use Optimal Debt Solutions if I have good credit?
Yes, but it depends on your goals. If you have good credit and are simply looking to simplify your debt through a consolidation loan, you might be better served by working with a lender or bank directly. Optimal Debt Solutions is more focused on helping individuals who are struggling with debt, late payments, or collection accounts.
3. Will I be sued if I enroll in a debt settlement program?
There is always a risk that creditors could take legal action if you stop making payments… especially during a debt settlement negotiation period. Optimal Debt Solutions may attempt to reduce this risk by negotiating quickly, but lawsuits are a potential risk in any debt settlement program.
4. How long does it take to complete a debt settlement program?
Most clients complete their program within 24 to 48 months. However, the timeline depends on your total debt, ability to make monthly payments into the program, and how fast settlements are reached with your creditors.
5. What fees does Optimal Debt Solutions charge?
Fees typically range from 15% to 25% of the total debt enrolled in the program. These fees are only charged after a successful settlement is reached, in compliance with FTC guidelines. Always request a breakdown of potential fees before signing up.
6. Will enrolling affect my credit score?
Yes, debt settlement programs can negatively impact your credit score in the short term because they often involve stopping payments to creditors. However, many clients find the long-term benefits, such as becoming debt-free… outweigh the temporary credit impact.
7. Is Optimal Debt Solutions suitable for federal student loan debt?
No, federal student loans are not eligible for debt settlement through Optimal Debt Solutions. For federal loans, it’s best to explore government-sponsored options like income-driven repayment plans, deferment, forbearance, or Public Service Loan Forgiveness (PSLF).
8. What happens if I drop out of the program halfway?
If you cancel your enrollment before a settlement is reached, you will not be charged fees. However, you may still owe the full amount to your creditors, and any progress made during negotiations may be lost. It’s important to speak to a representative before exiting to understand the consequences.
9. Can I negotiate with creditors myself instead of using Optimal Debt Solutions?
Yes, it’s entirely possible to negotiate with creditors on your own. However, it requires time, persistence, and some financial knowledge. Many people turn to debt relief companies like Optimal for professional help because they may get better settlement terms and avoid the stress of doing it alone.
10. Is Optimal Debt Solutions better than a nonprofit credit counseling agency?
Not necessarily. Nonprofit credit counseling agencies typically offer Debt Management Plans (DMPs), which don’t reduce the principal owed but may reduce interest rates. Optimal Debt Solutions focuses more on settlement and negotiation, which can reduce your total debt owed. Your choice should depend on your financial goals and current credit standing.
Logo of New Era Debt Solutions (credit: neweradebtsolutions.com)
New Era Debt Solutions (https://neweradebtsolutions.com/) is a well-established, legitimate debt settlement company (NOT a credit counselor) that’s been helping people get out of debt since 1999, which makes it one of the oldest debt settlement providers in America. Based in Camarillo, California, they operate nationwide (EXCEPT Maine, Oregon, and Iowa), and specialize in negotiating with creditors to settle unsecured debts, like credit card debt, personal loans and others for less than what you owe.
Check if You Qualify First
Considering debt settlement? New Era offers a free consultation to help you assess whether their program fits your situation. No commitment required.
New Era Debt Solutions takes the #1 spot in our debt relief company rankings this year due to their combined score of 4.84/5 stars, at time of press, as you can see below. This objective score takes into account their ratings on multiple third-party review sites, like the BBB, Google Reviews, TrustPilot and others.
New Era Debt Solutions has a good profile on Google reviews
What Services Does New Era Debt Offer?
New Era primarily offers debt settlement services, meaning they work with your creditors to reduce the total amount you owe. This service is specifically for unsecured debt (like credit cards, medical bills, personal loans and certain other types of debt). Their service cannot help for things like mortgages or student loans.
New Era Debt aims to create a plan that helps you become debt-free in as little as 24 to 48 months. One of the standout aspects of New Era is that they don’t charge any upfront fees. You only pay them when they’ve successfully settled your debt and you have agreed with their plan.
New Era Debt vs Others
It’s important to note that New Era Debt Solutions is a debt settlement company, not a credit counseling nonprofit. Therefore, they don’t do Debt Management Plans (DMP’s) and instead they simply negotiate with your creditors to settle for a much lower debt. This means you will take a credit score hit, but much lesser than that of a bankruptcy’s. Their service is similar to companies like CuraDebt, TurboDebt, Accredited Debt Relief and others.
If you’re wondering how New Era Debt compares to other providers who may offer similar (but different) options on how to deal with your debt, see the table below:
Feature / Factor
New Era Debt Solutions
Family Credit Management (FCM)
Bankruptcy (Chapter 7)
Type of Program
Debt Settlement
Debt Management Plan (DMP)
Legal Debt Discharge
Typical Debt Reduction
30–60% of enrolled debt
Interest reduction only
Up to 100% (full discharge)
Upfront Fees
❌ None
✅ Usually $0–50 setup fee
✅ Court & lawyer fees (~$1,500–$2,000)
Ongoing Fees
14%–23% of enrolled debt (only if settled)
$25–$75/month (varies by state)
❌ None after filing
Impact on Credit Score
❌ Negative (missed payments + settlement)
⚠️ Neutral to slightly negative
❌ Severe (stays for 7–10 years)
Time to Completion
24–48 months
36–60 months
~6 months (Chapter 7)
Covered Debts
Unsecured (credit cards, personal loans)
Unsecured (credit cards, medical, etc.)
Most unsecured debts
Creditor Negotiation
✅ Negotiates balance reductions
✅ Negotiates lower interest rates
❌ No negotiation — legal discharge
Eligibility Requirements
Must have financial hardship
Verifiable income + willingness to pay
Must pass a means test
Credit Counseling Required?
❌ No
✅ Yes
✅ Yes (pre-filing requirement)
Legal Protection from Creditors?
❌ No (until settled)
❌ No (voluntary plan)
✅ Yes (automatic stay)
Best For…
Settling large unsecured debts without bankruptcy
Paying debts in full with lower interest
Wiping out debts with no repayment
NOTE: make sure you study all the options above to find the right method to tackle your debt. They all have their pros and cons, depending on your situation.
If you’re comparing debt relief options and want to understand how settlement might apply to your debt, you can use New Era’s free assessment tool to get a clearer picture.
In terms of reputation, New Era Debt Solutions has solid reviews across multiple platforms, as we covered earlier in the “company’s snapshot” section. They hold an A+ rating with the Better Business Bureau (BBB).
On Trustpilot, they’ve received mostly positive reviews, with customers praising them for professionalism and their ability to reduce large amounts of debt. Like any company, there are a few negative reviews, but those are often about the downsides of debt settlement itself (such as its impact on credit scores), rather than the company’s service.
Management Team
New Era’s CEO, Dan Smith, has a strong background in finance and a focus on ethical, transparent practices. The company is committed to not only helping clients get out of debt but also educating them on how to stay out of it in the future. They pride themselves on being a debt settlement company that actually does the work in-house—they do not outsource anything, so you’re always dealing with New Era directly.
Which States Do They Cover?
New Era Debt Solutions serves clients across the United States, except in the states of Maine, Oregon, and Iowa as we covered in the beginning of this article. This may change in the future, so it’s always a good idea to fill out their pre-qualification form to see if your address allows debt settlement and if New Era operates there.
What’s the Process Like?
When you sign up, you’ll first have a consultation to review your financial situation. After that, they’ll create a plan tailored to your debt and begin negotiating with your creditors. You’ll make monthly payments into an escrow account while New Era works to settle your debts for less than what you owe. It’s a fairly straightforward process, but as with any debt settlement plan, it’s important to know that your credit score will take a hit. While under negotiation, there are also risks like collection calls or lawsuits.
Is New Era Debt Solutions Right for You?
New Era Debt Solutions has been around for over 20 years, and their track record, coupled with strong reviews and no upfront fees, makes them a legitimate option if you’re considering debt settlement. They are especially appealing if you’re struggling with large amounts of unsecured debt and need an alternative to bankruptcy. That said, debt settlement isn’t for everyone—make sure to understand the pros and cons before diving in.
If you’re dealing with overwhelming debt due to this high-inflation economic landscape, and are looking for a company that can help you decrease and/or pay off your debt, and has a great reputation, New Era could be the right fit for you. Make sure you take advantage of their free consultation to ask which of their various debt relief options is best for you.
FAQ
Here’s a frequently asked questions (FAQ) section covering the most common questions new users have about New Era Debt Solutions:
1. How much does New Era Debt Solutions charge?
New Era charges between 14% and 23% of the initial enrolled debt amount. There are no upfront fees; they only get paid when they successfully negotiate a debt reduction. This is a contingency-based fee structure.
2. What types of debt does New Era handle?
They handle unsecured debts like credit card debt, personal loans, private student loans, medical bills, and some types of business debts. They do not handle secured debts like mortgages or car loans.
3. Will using New Era affect my credit score?
Yes, debt settlement, regardless of which company you choose to work with, will negatively impact your credit score. Settling a debt means paying less than the full amount owed, which creditors deem a negative event. However, the impact is less damaging than bankruptcy.
4. Is New Era Debt Solutions accredited and reputable?
Yes, New Era has BBB accreditation and has an A+ rating. They have generally positive reviews from clients on platforms like TrustPilot and the BBB website.
5. Where is New Era available?
New Era is accessible in 46 states as well as Washington D.C. and the Virgin Islands. They do NOT operate in Maine, Oregon, and Iowa.They collaborate with the Consumer First Legal Network to offer services in certain states where they may not directly operate.
6. What happens if a creditor refuses to settle?
If a creditor refuses to negotiate, they could potentially take legal action, which might result in lawsuits or wage garnishments. However, most creditors prefer to negotiate rather than pursue costly legal action.
7. How long does the debt settlement process take?
The typical debt settlement program with New Era takes around 28 months. The exact duration depends on the amount of debt, your monthly contributions, and how quickly creditors agree to settlements.
8. Can I cancel my program with New Era Debt Solutions?
Yes, clients can cancel their program with New Era at any time. However, any funds put towards fees or those that are in the dedicated account may be subject to the terms of the cancellation agreement.
Debt relief isn’t one-size-fits-all. If you’re considering settlement, it might be worth seeing if you qualify through a no-pressure consultation with New Era.
Amine Rahal
Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.
Lauren Brown
Lauren has over 13 years of experience in wealth management and financial planning. She is a CFA charterholder and holds a Bachelor’s degree in Finance. Lauren has worked with several asset management firms, offering wealth advisory and portfolio management services to high-net-worth clients.
In the U.S., interest rate caps—especially when it comes to protecting consumers from predatory lending—are largely regulated at the state level. This means that the maximum interest rates lenders can charge vary depending on which state you live in and the type of loan we’re taking out. Let’s break down how this works across different states.
What Qualifies as a “Predatory Loan”?
First, let’s compare a traditional loan you would get from a bank versus a “predatory loan” you would get from an alternative lender:
Feature
Traditional Bank Loan
Predatory Loan
Interest Rate
Low to moderate (typically 3% to 12% APR)
Very high (can exceed 50% APR, sometimes 300%+)
Loan Terms
Fixed terms (usually 1 to 30 years)
Short terms (often 2 weeks to a few months)
Repayment Structure
Monthly payments, often with amortization
Lump-sum payment or frequent, high payments
Fees and Charges
Transparent, disclosed upfront
Hidden fees, high fees, or penalties
Borrower Qualification
Strict requirements (credit score, income, etc.)
Minimal qualification (often no credit check at all)
Regulatory Oversight
Highly regulated by federal and state laws
Often operates in regulatory gray areas
Purpose of Loan
Typically for major purchases (homes, cars, education)
Often for emergency or short-term needs
Impact on Credit Score
Positive impact if paid on time, reported to credit bureaus
Negative impact, often not reported positively to credit bureaus
Borrower Rights
Strong consumer protections, recourse available
Limited recourse, predatory practices common
Rollover/Renewal
Generally not allowed or unnecessary
Frequent rollovers, trapping borrowers in cycles
Lender’s Intent
Long-term relationship, repayment is expected
Profit from borrower’s inability to repay on time
Essentially, a predatory loan is a type of loan that takes advantage of borrowers in vulnerable and dire financial situations. These loans often come with excessively high interest rates, hidden fees, or deceptive terms that make it difficult for borrowers to repay the loan.
Federal Protections
Before diving into state specifics, it’s worth noting that there is a federal cap in place for certain groups. The Military Lending Act (MLA) caps interest rates at 36% APR for active-duty service members and their dependents on most consumer loans. This law provides a strong layer of protection, but it only applies to military members. You can learn more about the MLA on the Consumer Financial Protection Bureau (CFPB) website.
State-Level Interest Rate Caps
Interest rate caps for everyone else are set by state laws, and these can vary widely:
California
Payday Loans: In California, payday lenders can charge up to $15 per $100 borrowed, which can equate to an APR of over 400% depending on the term of the loan.
Installment Loans: For loans over $2,500, there’s no cap on interest rates.
Payday Loans: Colorado has one of the stricter caps, limiting payday loan interest rates to 36% APR. This was implemented after voters approved a 2018 ballot measure to curb high-interest payday loans.
All Loans: New York has a strict usury law that caps interest rates at 16% for most types of consumer loans. Charging above 25% is considered criminal usury.
More Info: For more on New York’s laws, the New York State Department of Financial Services is a good resource.
South Dakota
Payday Loans: Like Colorado, South Dakota caps payday loan rates at 36% APR. This cap was set after a successful 2016 ballot initiative aimed at protecting consumers from predatory lending practices.
More Info: Learn more on the South Dakota Division of Banking website.
Texas
Payday Loans: Texas doesn’t cap interest rates directly for payday loans, but it does regulate fees. This can still lead to APRs that exceed 400%, depending on the loan’s terms, which is extremely high.
More Info: The Texas Office of Consumer Credit Commissioner provides more information on lending laws in the state.
Illinois
All Loans: As of 2021, Illinois capped interest rates at 36% APR for all consumer loans, including payday loans, through the Predatory Loan Prevention Act.
All Loans: Utah has no cap on interest rates, making it one of the most lender-friendly states in the U.S. This means payday lenders and other high-interest lenders can charge extremely high rates. Beware of Utah-based lenders.
More Info: For more, see the Utah Department of Financial Institutions.
Know Your Rights & Do Your Due Diligence
These state-specific laws are crucial because they determine how much protection you have against predatory lending practices. In states with strict caps like New York or Colorado, consumers are generally safer from exorbitant interest rates. But in states like Utah or Texas, the lack of caps means consumers need to be extra cautious when taking out loans.
Predatory loans have put many American consumers in dire financial situations, exacerbating their debt and pushing them into bankruptcies. If you are dealing with high debt and are struggling to pay your bills, consider debt settlement instead of requesting another loan which will most likely put you deeper into debt.
Finding Out More
If you’re considering taking out a loan, it’s a good idea to first check what the interest rate caps are in your state. You can usually find this information through your state’s Department of Financial Services or a similar regulatory body. Additionally, theConsumer Financial Protection Bureau (CFPB) offers a wealth of resources on consumer rights and protections.
By understanding these caps, you can better protect yourself from predatory lending practices and make more informed financial decisions.
Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.
Amine Rahal
Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.
