Debt Settlement in Michigan

Michigan Debt Statistics & Laws

Michigan is the automobile capital of the world. Its consumers carry $800 less in credit card debt than the national average of $5,200 per borrower, but the unemployment rate is high at nearly 9% statewide & a staggeringly high 18% in the city of Detroit. The average credit score in the state is almost 710 and would be considered “great” or “excellent” by most standards.

For consumers in Michigan, the laws of the Fair Debt Collection Practices Act (FDCPA) offer protections such as:

  • Creditors or collection agencies must comply and follow all provisions of the FDCPA, excluding provisions where required disclosures are involved.
  • Collection agencies cannot charge more than a maximum rate of 5% interest.
  • Wage Protection in Michigan is 60% of wages + an additional $2/week for each non-spouse dependent. If the consumer is not the head of their household, up to 40% of wages or a minimum of $10/week can be kept. This is in direct opposition to the federal law which states at least 75% of wage can be kept, but the Michigan state law supersedes it in this case.

Statute of Limitations in Michigan

The statute of limitations is the time limit set by the state under which financial institutions can attempt to collect on a delinquent debt. Once the time limit stated in the statutes has passed for a debt, a collection agency or creditor can no longer collect on that debt legally. For different types of debt in Michigan, these are a statute of limitations set by state law:

  • Promissory notes: 6 Years
  • Oral Agreements: 6 Years
  • Written Contract: 6 Years
  • Open Credit Card Accounts: 3 Years

Get Informed About Michigan Debt Settlement

New Era logo over Detroit skyline

How Does Debt Settlement Work?

Michigan debt settlement involves negotiating a payment to creditors for less than what is owed to repay an unsecured debt. This is different from debt relief options such as Debt Consolidation and Credit Counseling, which only affect the interest rate and do not affect the total debt balance.

By reducing the debt balance through bargaining, Debt Settlement can provide the potentially quickest route to handling your unsecured Michigan debts. Most creditors and financial institutions in Michigan are willing to accept a portion of the principal balance as payment because this is a favorable outcome compared to losing the entire amount of debt owed in a bankruptcy proceeding.

New Era debt negotiators have over two decades of experience getting the best settlement offers. Our most successful clients for debt settlement in Wayne County, Oakland County, Macomb County, Kent County, Genesee County and other areas across the state were the ones that were ready and willing to respond immediately.

Types of debt that are eligible for debt settlement in Michigan:


  • Personal lines of credit
  • Credit cards
  • Signature loans
  • Department store cards
  • Private student loans in default
  • Old repossessions
  • Old judgments
  • Other unsecured debts


Types of debt that do not qualify for settlement in Michigan:


  • Car loans
  • Federal student loans
  • Credit Union debts
  • Home mortgages
  • Medical / Hospital bills
  • Other secured debts


This list does not cover all types of debts. Check with your Michigan debt counselor before making any final decisions.


Michigan Debt Settlement Services by City


  • Detroit Debt Settlement
  • Grand Rapids Debt Settlement
  • Warren Debt Settlement
  • Sterling Heights Debt Settlement
  • Lansing Debt Settlement
  • Ann Arbor Debt Settlement
  • Flint Debt Settlement
  • Dearborn Debt Settlement
  • Livonia Debt Settlement
  • Clinton Debt Settlement


Learn About Your Options for Debt Relief

Below are brief descriptions of a few of the different types of debt relief methods that are commonly used in Michigan.

1. Make minimum monthly payments.

This is often the most time consuming and costly option. Even though it may be the most affordable route to take, the longer it takes to pay off a debt, the more is paid out to interest in the end. There are much better methods for achieving financial freedom in Michigan.

2. Credit Counseling or Debt Management.

Credit counseling is a debt management program (DMP) in which you make a single monthly payment to a credit counseling agency who then allocates the funds to creditors on your behalf. The biggest benefit with credit counseling is that agencies are often able to secure a lower interest rate for repayment so less is paid out in the long run. The principal debt still has to be paid back in full in addition to any interest that has built up. Debt management programs are designed to take 3 to 5 years to finish and have low rates completion in Michigan.

3. Debt Consolidation.

Debt consolidation in Michigan involves taking out a larger, low-interest loan which is then used to pay off your higher-interest unsecured loans. When it is used properly, this form of debt relief can leave you making a single monthly payment that is lower than what you were paying for all your credit card and other unsecured loans. With interest rates on the lower side, consolidation can potentially save you thousands as much less interest is accrued over time.

4. Debt Settlement or Debt Negotiation in Michigan.

Debt settlement is unique from the first options in that the actual principal balance owed is able to be reduced through negotiation. Because it can significantly reduce the unsecured debt balance, Michigan debt settlement is generally a quicker and more economical debt relief option than either debt counseling or debt consolidation.

5. Bankruptcy.

Bankruptcy may be an inevitable bump in the road for any individual who cannot possibly meet his or her debt obligations. A formal declaration of bankruptcy may halt the creditor collection process and the debtor is relieved of some or all the unsecured debt, but the extensive damage done to their credit profile may not be worth it.

Figure Out Your Financial Circumstances


Do you have a legitimate financial hardship?


Piggy bank painted with state flag of MichiganIn Michigan, many debtors find themselves in financial trouble because of circumstances caused by a: loss of income, divorce / separation, or medical issue. These are legitimate financial hardships that can happen to most consumers through no fault of their own, and any of these situations can cause serious trouble for your household budget.

Debt Settlement is not a “free ride” for those who simply don’t feel like paying bills. It is a route to financial freedom if you are in debt due to a hardship circumstance and would prefer to work things out with creditors rather than declaring bankruptcy. Michigan debt settlement can provide an honest and ethical debt relief alternative for consumers who are ready to be free of debt.


Are you committed to getting back on top of your finances?


Debt Settlement is an aggressive approach to debt relief and requires a great level of commitment all the way through. Your ability to stay the course, even when the road gets a bit bumpy, is often what determines success in the program. For those who are willing to see it through to the end, debt settlement can potentially get you through your financial difficulties faster and at a lower cost than any other debt relief option in Michigan.

Are your debts primarily from credit cards?

Most types of unsecured debt can be negotiated through settlement including lines of credit, signature loans, repossession deficiencies, financing contracts, department store cards, miscellaneous bills, and other unsecured debts. However, the deepest discounts are usually obtained with credit card debts. So, if most of your debt is from unsecured credit card accounts, you can expect Debt Settlement to be an effective strategy for relieving debt in Michigan.

How do I Know That New Era is Trustworthy?


By asking these 14 important questions, you can quickly understand whether or not a debt settlement company has your best interests in mind. It is always a good idea to check with the Better Business Bureau for the company’s rating and complaint history with consumers in Michigan.

Our conduct has earned us an A+ rating with the Better Business Bureau. New Era has proudly been helping Michigan consumers become debt free since 1999. We’ve settled more than $275,000,000 in debt and worked with thousands of debtors from around the country. But don’t just take our word for it, pay a visit to our Testimonials page to hear what past clients think of our service.



How We’re Different from Other Debt Settlement Companies in Michigan:


 No Upfront Fees. A Debt Settlement company should not charge you any fees unless or until they settle your debt. Period. This is not only the most ethical way to do business – per an FTC ruling effective October 27, 2010, it’s also the only legal way to charge fees.

  • No “add-on” fees. Some debt settlement companies try to get around the law by charging administrative fees, signing fees, consultation fees and various other excuses to get money from you. Good guy debt settlement companies such as New Era charge only a settlement fee, which you do not pay until your debt is settled.
  • End-to-end service. Some “debt settlement” companies you may talk with are only sales groups who will sell or pass your account off to a different company to handle your settlement. This means your financial data is being passed around and the sales person has no control over – or interest in – how your debt is settled. Look for a company such as New Era who will handle your program from beginning to end.
  • Experience. With the crash of the sub-prime mortgage industry in Michigan many new debt settlement companies headed by prior mortgage industry people suddenly popped up. These companies do not have nearly the experience or the relationships that lead to your best settlement deals. Look for companies who have been around long enough to amass a solid settlement track record. For example, New Era has been settling debts since 1999, and we’ve settled more than $275,000,000 in debt for our clients.

Get Started

Consumers in Michigan can get a FREE analysis of their debt. We will show you how much time and money you can save. Contact New Era Debt Solutions to get started.