Is New Start Financial a Scam or Legit?
Should you respond to New Start Financial and trust that they are the best way to consolidate debt? I don’t think so!
If you have been thinking about it and you just received a “too good to be true” loan offer in the mail from New Start Financial or – listen to your gut instinct. Do you really think you qualify for a 0% interest rate? How many people with too much debt really qualify for that offer?
Alternatives to New Start Financial
Debt Management Program
Over 90% of Americans have some form of debt, ranging from credit card balances and car loans to mortgages.
While credit cards can serve as a useful safety net, if you’re juggling money owed to multiple creditors, managing debt can be stressful.
Debt can easily snowball if you use one card to make payments on other cards, though.
Perhaps you elect to carry a balance to focus on paying off some college debt. Sooner or later, this short-term fix becomes a problem of its own.
It could be that you manage to stop new borrowing, but then you experience a sudden and unexpected loss of income meaning you can’t meet your monthly payments. Medical bills, job loss, or a family emergency can all put you back to square one. One moment you’re actively reducing your debt, the next, interest starts racking up again.
If you’re struggling to manage your debt, you don’t need to do this alone. A debt counselor can educate you about consumer credit and help you formulate a plan to pay that debt down. With debt management and consolidation, you’ll get one manageable payment to make each month.
Realistic debt management plans should allow you to make monthly payments without making unsustainable sacrifices. You shouldn’t need to take out an additional loan either.
A reputable debt management company will:
- Analyze your financial situation and establish a workable payment plan
- Help you to create a budget that meets your needs
- Help you to create a debt management plan focusing your finances into a single monthly payment for debt consolidation purposes
A debt management program will also explore any charges and possible reductions. They can also help you to negotiate more time to pay down debt.
The average American household shoulders $8000 in credit card debt. The source of this debt varies. Some are from credit card spending that inches up over time. It could be due to student loans or mortgages.
Credit card debt and the need for debt consolidation can easily sneak up on you. Credit cards make it hard to keep tabs on your daily expenditure. When you use cash, it’s easier to keep track of spending. With a credit card, you can become more careless about spending.
Even if you’re conscientious using your credit card and you manage to peg your spending within the framework of a budget, unexpected events can happen. A surprise car or home repair, a family emergency, or medical bills can easily turn your credit card into your only option. The problem is, you’ll then need to meet the bill, with interest.
By getting credit counseling, you can become better aware of how to handle your finances and how to use credit cards responsibly.