Debt Settlement in New York City
The capital of the world is New York, New York. This massive megacity is the largest and most densely populated in the United States. The New York Metropolitan area is the largest in the world by landmass, bustling with over 20 million people day and night. The titanic sprawl of streets, homes, businesses, and landmark after landmark are neatly cut into a grid that sits atop a spiderweb of 472 rail stations and the tracks that connect them. The fame of Times Square, the gravitas of the United Nations Headquarters, the grandeur of the Statue of Liberty, and the beauty of that iconic skyline draw in people from across the world like no other city can. In 2017, a record 62.8 million tourists came from across the world to briefly experience New York City, to bask in a climate that routinely produces some of the most incredible works of engineering, art, finance, and politics that have ever existed.
New York is a place that is always growing, creating, and producing at an advanced rate. The gross metropolitan product (GMP) in 2019 was an estimated $2.0 trillion dollars. There are twenty-three Fortune 500 companies headquartered in New York City, and many major industries are prevalent in the city. Wall Street, real estate, tourism, media and entertainment, advertising, and technology are all major cogs in New York’s financial machine. The variety and sheer size of New York industries, and the structures needed to maintain them, has certainly been kind to much of the population; the median household income in the city is an impressive $63,799 annually compared to the U.S. median of $61,937 annually. This may be due in part to the relatively high quality of education available in the city itself. Public education in the city alone includes 1700 primary and secondary schools that educate 1.1 million students, a statistic that does not even include the approximately 900 private schools that operate within the city. It should then come as no surprise that New York City is also the city with the most institutions of higher education, over 120 institutions to date, and the best higher education institutions of any city according to the Academic Ranking of World Universities.
All the aforementioned points are great credits to the City of New York, but not to all her people. The most apparent problem to visitors and natives alike is the absurdly high cost of living in New York City. The median property value in New York City for 2018 was $645,100, almost double the state median of $325,00, and that number compares very unfavorably to the national median of $184,700 in the same year. That is an increased cost of 349.27% from the national to the city level. However, this will not affect most New Yorkers since only 32.8% of housing units in the city are owner-occupied to begin with. In fact, according to bestplaces.net, New York City has a higher cost of living in every single metric, from 12.6% more expensive healthcare to 50.5% more expensive utilities and an overall 87.2% higher average cost of living. With high prices and a fast-paced life, relying on credit cards and other unsecured loans is a fact of life for many New Yorkers. However, predatory lending practices and inflated sales goals have wormed their way into the process and put many hard-working people at the mercy of large financial institutions. It is no coincidence that, of the top twelve publicly traded companies in New York City, ten of them are financial service firms. When the unexpected happens, New York City residents are in precisely the type of situation where a missed payment could snowball into far more debt than anticipated, leaving many in need of serious debt relief.
If you find yourself feeling trapped by lingering debt and ballooning interest payments, it may be best to seek debt relief sooner rather than later and give New Era Debt Solutions a call at 800.527.4421 for a free consultation.
Consider Your Options
Here is a brief description of each of the five main debt relief methods.
1. Continue making minimum monthly payments.
If you can make minimum monthly payments, you may feel you’re doing the right thing by continuing that same path. But this just may be your worst strategy. The average credit card debt in New York City is $6,671.00 per person. At a 20% interest rate, that means the average New Yorker is tacking on an extra $1334.20 of expenses per month. That is almost as much as an average rent payment on its own. This “just paying it” approach may work for a time, but what happens in the event of an emergency expense? It only takes one missed payment to inflate a simple debt into a more challenging obstacle.
2. Credit Counseling or Debt Management.
Credit counseling is a debt management program in which you make a single monthly payment to a credit counseling agency. In turn, that agency distributes the money to your creditors on your behalf, ideally at lower interest rates so you can pay off the debt faster. You still end up paying back 100% of your debt plus interest, but now you owe the agency a fee for their services as well. These programs are designed to take 3 to 5 years, but many New York City residents may find that they have very low completion rates due to the funds required.
3. Debt Consolidation.
With debt consolidation, you take out a larger, low-interest loan and use that money to pay off your higher-interest unsecured loans. This would have you make a single monthly payment that is – in theory – lower than what you were paying for all your credit card and other unsecured loans. This is not a guarantee, however, and consolidating debt should be treated very delicately. In some cases, a low-interest loan is still too much of a payment and the “debt consolidation” acts as little more than a balance transfer of your debt to a single lender. Though your situation is now simplified and with lower interest, you owe the same amount of money to another financial institution. The loan itself can be difficult to qualify for as well. Many lenders require a good credit history, proof income, equity to use as collateral (such as home equity), and more.
4. Debt Settlement or Debt Negotiation in New York City.
Debt settlement differs from the first two options in that the actual principal balance you owe is negotiated downward. Because you end up owing less, debt settlement is generally a faster and less expensive debt relief option than either debt counseling or debt consolidation and prevents having to file for bankruptcy. This is what New Era Debt Solutions does for you. If you want to learn more about how the process works and get a free consultation, give us a call at 800.527.4421 today.
5. Bankruptcy.
For the individual who cannot meet his or her debt obligations, bankruptcy may be inevitable. A formal declaration of bankruptcy stops the creditor collection process, and the debtor no longer owes some or all the unsecured debt. This is obviously a last resort, but debt cases that are not addressed early enough often find their way here. A wave of bankruptcies seems inevitable with the changes brought about by COVID-19, and even the City of New York itself was on the brink of bankruptcy in March of 2019.
What Is Debt Settlement?
How It Works
In contrast to a debt management company, which merely manages your Debt Settlement works by negotiating a payment for less than the principal (balance owed) on your unsecured personal debt accounts. By negotiating on the balance itself, Debt Settlement can provide much faster means for people living in New York City to pay debts that would otherwise be unmanageable.
Most creditors are willing to accept payments of significantly less than the balance owed to close out an account, rather than lose the entire amount in a bankruptcy proceeding. New Era negotiators are experts at getting the best possible deals from a variety of different creditors.
Click here to see what kinds of accounts can be included in our debt settlement program or call New Era Debt solutions directly at 800.527.4421 for a free consultation.
Is Debt Settlement Right for You?
· Do you have a legitimate financial hardship condition?
The majority of debt problems in New York City are likely caused by some combination of loss of income, medical complications, emergency expenses, and sudden divorce or separation. These are legitimate financial hardships that can happen to anyone and can ravage your finances through no fault of your own. If an outside circumstance caused you to fall behind on your payments or caused surprising new expenses, you may have an appropriate financial hardship.
Debt Settlement, however, should not be considered a free pass for people who don’t feel like paying their bills. If you are over your head due to a hardship circumstance, and you’d prefer to work things out with your creditors rather than declare bankruptcy, then Debt Settlement can provide an honest and ethical channel for debt relief.
· Are you committed to getting out from under your debt?
Debt Settlement is an aggressive approach to debt relief; and, as such, it presents an occasional challenge. The process requires patience and determination to be free of your financial burdens. Though it is true that debt settlement can be difficult, nothing is more difficult than perpetually hauling around a mountain of debt. For those who are willing to see it through, debt settlement can get you through your financial difficulties faster and at a lower cost than any other debt relief options in New York City.
Why Choose New Era Debt Solutions
· Trust. Finding a trustworthy company is not always easy, but the differences are obvious if you know what to look for. The first way to make sure you are dealing with professionals is by asking these 14 important questions. It is always a good idea to check with the Better Business Bureau for the company’s rating and complaint history, especially with consumers in New York City. New Era Debt Solutions works hard to maintain an A+ rating with the Better Business Bureau.
· Experience. New Era has been helping New York City consumers become debt free since 1999. We’ve settled more than $275,000,000 in debt and worked with thousands of clients in a variety of situations. You can visit our Testimonials page to read or listen to the stories of real clients in their own words.
· No Upfront Fees. A Debt Settlement company should not charge you any fees unless or until they settle your debt. 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 upfront payment from you. Honest debt settlement companies, such as New Era, charge a settlement fee which you do not pay until your debt is settled. Always make sure you know what you are being charged for.
· End-to-end service. Some “debt settlement” companies you may find are only sales groups who will hand off your accounts to a different company that will negotiate the actual settlement. The problems with this are self-evident. This sales group passes along your information, possibly to multiple companies, and is not invested in your needs or experience once your file is off their desk. Look for a company such as New Era who will handle your program from beginning to end.
· Longevity. With the crash of the sub-prime mortgage industry in New York City many new debt settlement companies headed by prior mortgage industry people suddenly popped up to take advantage of the situation. As the economy shifts and changes, this will surely happen again. Do not be drawn in by ads full of buzz-word phrases and a polished exterior. These companies simply do not have the experience or the relationships necessary to achieve your best settlement deals. Look for companies like New Era who have been around long enough to amass a solid settlement track record.
Get Started
Consumers in New York City 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.