Debt Settlement in Texas

New Era Debt Solutions has helped thousands of consumers in Texas clear their debt quickly through ethical, low-cost channels. Here’s how we can help you get started with debt settlement:

 

1. Request a free debt analysis or call 800.527.4421 for a free consultation with a New Era debt relief expert.
2. Make sure you understand how to succeed.
3. Explore the options available that have worked for other people from Texas.

 

Statistics & Laws on Debt in Texas

Texas households carry an average of over $215,000 in mortgage debt, an average student loan debt balance of nearly $33,500, and $9,200 in credit card debt. On the other hand, Texas unemployment is lower than the national average by about 1.5% and the average income just about matches the average seen across the United States.

• Statute of Limitations of 4 years for all types of agreements & open credit card accounts and 1 year in length for violations, from the date the violation occurred.
• 100% Wage Protection.
• A maximum rate of interest that a collection agency can charge is 6%.
• Original and collecting creditors must adhere to all aspects of the Fair Debt Collection Practices Act (FDCPA), with the exception being for provisions dealing with required disclosures. One example of this is that the original creditor is not required to verify the validity a debt.
• Creditors and collection entities also cannot convince a debtor to agree that debt was incurred for life necessities when it was not, attempt to collect a collection agent’s fee unless authorized in the original agreement, or claim that something has value in its possession to false convince the debtor.

Average Credit Score in Texas

According to the FICO credit scores database, the average credit score in Texas was around 685 in 2024. This places the state as one of the worst in the country when it comes to average credit history.

Credit scores can vary based on factors such as payment history, credit utilization, length of credit history, and types of credit used. Understanding these factors can help individuals improve their credit scores over time and avoid the high interest rates that often affect how much debt is accumulated over time.

 

Learn About Texas Debt Settlement

How Does Debt Settlement Work in Texas?

Debt Settlement is a type of debt relief that works by negotiating down the principal balanced owed on your unsecured debts. On average, debt settlement provides a faster means of handling your debt in Texas when compared to consolidation or counseling. In addition to lowering the interest rate, settlement can reduce the total amount of debt that has to be paid back. In some cases, up to 65% of the debt can be removed from the balance, but results vary. Debt Consolidation and Credit Counseling, on the other hand, do not affect the total balance of debt, but only the interest rate.

Settlement is an effective form of debt relief because most creditors are willing to settle for repayment that is less than the full debt to close out an account rather than lose the entire amount owed in a bankruptcy proceeding.

 

 

You can include the following types of debt in a Texas Debt Settlement Program with New Era:

 

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

 

The following types of debt do not qualify for settlement in Texas:

 

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

 

Texas Debt Settlement Services by City

 

• Houston Debt Settlement
• San Antonio Debt Settlement
• Dallas Debt Settlement
• Austin Debt Settlement
• Fort Worth Debt Settlement
• El Paso Debt Settlement
• Arlington Debt Settlement
• Corpus Christi Debt Settlement
• Plano Debt Settlement
• Laredo Debt Settlement

 

This list is not exhaustive. Be sure to check with your Texas debt counselor before applying for debt settlement in Houston, San Antonio, Dallas, Austin, or any other region of the state.

 

Consider Your Debt Relief Alternatives in Texas

Below are brief descriptions of some frequently used strategies of debt relief in Texas.

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 for achieving freedom from debt in Texas.

2. Texas Credit Counseling or a Debt Management Plan (DMP)

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. These programs are designed to take 3 to 5 years and have very low completion rates in Texas.

3. Take Out a Debt Consolidation Loan in Texas

With debt consolidation, you take out a larger, low-interest loan and use that money to pay off your higher-interest unsecured loans. This leaves you making a single monthly payment that is – in theory – lower than what you were paying for all your credit card and other unsecured loans.

4. Debt Settlement or Debt Negotiation in Texas.

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.

5. Declare Bankruptcy in Texas

For Texas consumers who cannot meet the repayment obligations of their debts, declaring bankruptcy may be an inevitable. A formal declaration of bankruptcy stops the creditor collection process, and the debtor no longer owes some or all the unsecured debt.

 

 

How Does Debt Relief Work in Texas?

Debt relief in Texas typically involves one of several options, including debt consolidation, debt settlement, and bankruptcy. Here’s how each one of these options works:

• Debt Consolidation – This consists of taking out a new loan to pay off multiple debts. With debt consolidation, you can consolidate your debts into one payment, which can make it easier to manage your finances. This can be done through a personal loan, home equity loan, or balance transfer credit card. In Texas, debt consolidation companies must be licensed and regulated by the Texas Office of Consumer Credit Commissioner.
• Debt Settlement – Debt settlement involves negotiating with your creditors to settle your debts for less than what you owe. If you’re unable to pay off your debts in full, this can be a good option. In Texas, debt settlement companies must be licensed and regulated by the Texas Department of Banking.
• Bankruptcy – Bankruptcy is a legal process that allows individuals and businesses to discharge or reorganize their debts. In Texas, bankruptcy is governed by federal law and can be filed in either the U.S. Bankruptcy Court for the Southern, Northern, Eastern, or Western Districts of Texas.

 

Texas Debt Relief FAQs

 

Do you have a legitimate financial hardship condition?

Most debt problems in Texas are caused by loss of income, medical issues, or divorce / separation. These are legitimate financial hardships that can happen to anyone through no fault of their own, and any one of these situations can wreak havoc on a household budget.

Debt Settlement system is not a “free lunch” 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 in Texas, then Debt Settlement can provide an honest and ethical debt relief alternative.

 

Are you committed to getting out from under your debt?

Texas Debt Settlement is an aggressive approach to debt relief; and, as such, it presents an occasional challenge. Your level of commitment to staying the course, even when the road gets a little bumpy, often determines success. 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 option in Texas.

Our clients who stay the course for debt settlement in Harris County, Dallas County, Tarrant County, Bexar County and other areas of Texas have the most success in relieving their debt.

Are your debts primarily from credit cards?

Most types of unsecured debt can be negotiated, including medical bills, lines of credit, signature loans, repossession deficiencies, financing contracts, department store cards, miscellaneous bills and more. The deepest discounts, however, are usually obtained with credit card debts; so, if most of your debt load is comprised of credit card debt, you can anticipate good results from the Debt Settlement strategy.

 

Is Debt Settlement a Good Idea in Texas?

Debt settlement can be an option for those who are struggling with debt and also depends on your individual circumstances. Debt settlement involves negotiating with your creditors to settle your debts for less than what you owe. This can be a good option if you’re unable to pay off your debts in full, but it’s important to be aware of the potential drawbacks.

In Texas, debt settlement companies must be licensed and regulated by the Texas Department of Banking, which provides some consumer protections.

Before considering debt settlement, it’s a good idea to explore other options such as budgeting, credit counseling, or debt consolidation. You should also consult with a reputable financial advisor or credit counselor to help you determine the best course of action for your situation.

Debt settlement can be a good option in Texas, depending on your specific financial situation and your ability to negotiate with your creditors. It’s important to weigh the potential benefits and risks before making a decision.

 

What is the difference between debt settlement and bankruptcy?

Debt settlement involves negotiating a reduced payment with creditors, while bankruptcy is a legal process that can discharge or restructure debts under court supervision. Bankruptcy has a longer-lasting impact on credit but may provide a fresh financial start in some cases where settlement is not applicable.

 

How much can I save with successful debt settlement in Texas?

Debt settlement savings vary, but many individuals reduce their debt by 20% to 50% as part of a New Era Debt solutions program. The exact savings depend on the creditor, debt amount, and negotiation terms.

 

What are Texas laws protecting consumers from aggressive debt collectors?

Texas follows the Texas Debt Collection Act and the federal Fair Debt Collection Practices Act (FDCPA), which protect consumers from harassment, deceptive practices, and unfair debt collection tactics.

 

Can I negotiate my own debt settlement in Texas?

Yes, individuals can technically directly negotiate with creditors to reduce balances or payment plans. However, working with a professional debt settlement company offers many benefits such as:

• Working with an experienced team who has handled many of these types of negotiations;
• Offloading the work of constantly communicating with creditors during the settlement process;
• And securing potentially larger settlement deals with creditors by working with debt relief experts who have established trust and a direct line of negotiation with many institutional firms in the United States.

 

Can I Trust New Era?

 

You can pick the good guys from the bad guys by asking 14 important questions. It is always a good idea to check with the Better Business Bureau for the company’s rating and complaint history with consumers in Texas. New Era Debt Solutions is rated an A+ with the Better Business Bureau.

New Era has been helping Texas consumers become debt free since 1999. We’ve settled more than $275,000,000 in debt and worked with thousands of clients. But don’t take our word for it. Visit our Testimonials page to read or listen to our clients’ stories in their own words.

 

Here’s what makes New Era different:

 

 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 Texas 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 with Debt Settlement in Texas

Consumers in Texas 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.

New Era negotiators are experts at getting you some awesome deals in Texas, but the offers don’t last forever. The most successful debt settlement clients in Texas are ready and willing to start TODAY.