Question
Has anyone heard of New Beginnings Debt Settlement, LLC based in Jupiter, FL?
A friend of mine referred me to New Beginnings Debt Settlement after I realized I got myself in a lot of unsecured debt ($40,000). I researched the info online and I couldn't find anything bad about this company, so I enrolled in their program but they I've been moving my first payment date cuz I'm just scared that they will just get me in more trouble than the one I'm in. I followed their instructions, i.e. to default on my payments in order to become past due, which apparently is a requirement for them to be able to negotiate a settlement with my creditors. I'm already 2 months past due on most of them. Now I am starting to think that maybe I could do the debt settlement myself rather than paying someone else to do it for me. I'm just desperate and I can't sleep at night nor concentrate at work. All I do is worry and think whether this will work out or not. I've never defaulted on anything before, I always take care of my bills, until now. I mean, this was gonna happen sooner of later, I got to the point where I didn't know how to get the money to pay my creditors anymore, which basically lead me to believe I had no other options but to go with a debt settlement company. I was already having trouble to pay and now my work cut my hours which is making my financial situation very hard. I found New Beginnings Debt Settlement, LLC at the BBB in FL www ... They had a B+ rating for the last 3 weeks and now it shows with a C+, that's weird. I make around $38,500/yr and I ended up getting in a lot of debt in only 2 years when I had a boyfriend who was an alcoholic, lost his job and ended up going to jail for domestic violence cuz he used to hit me. It took me a while to realize I was in a self destructive relationship, but I finally got out of it. I know this is no excuse for getting in debt, but at the time I just didn't know what to do and I couldn't risk getting evicted and ending up in the streets, so I supported both of us on credit cards. $40,000 later, I moved to a cheaper place, and I'm moving to an even cheaper place in 2 months which will free up some more money. I've been living paycheck to paycheck and it got to the point where I was $700-$1000 short every month. Is it true that these debt settlement companies can get you out of debt in only 3 yrs? I'm trying to avoid bankruptcy, that's why I thought I could negotiate a settlement myself rather than paying 10% in fees to New Beginnings to settle my debt. Either way, I understand my credit will suffer for 3 yrs. So far, only 3 accounts show 30 days late on my credit report... Creditors keep calling me to offer payment plans and reduced rate to get my accts current... One more thing, I don't know if this is true, but I was told the following: New Beginnings negotiates with Bank Of America by telling them they have 1,000 customers of theirs with $5,000,000 worth of debt, so they offer BofA a settlement of $2,000,000 on behalf of the 1,000 customers that owe them money. Does this make sense and can this be true?
5 months ago - 5 answers
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This LLC is registered in Florida but it appears the administration was absolved and reorganized. Here is link to verify their information in Florida www ... Now as to whether or not they are legit, let's put it this way, the FTC states most companies that promise to get you out of debt are just going to take your money and ruin your credit. You have already ruined your credit by taking their advice and letting the accounts go more then 30 days past due. They will now show as being delinquent and under the Running of Reporting Period - Section 605 [15 U.S.C. § 1681c] those late payments will remain on your credit report for 7 1/2 years (dating from last missed payment). That should have been a red flag raiser to you. If you can, try and contact your creditors and see what you can do to get back on track, dump the agency and don't waste your money on them. Here are some warning signs to look for 1. Credit repair companies advertise directly to consumers on the radio, the Internet and on telephone poles! 2. They claim they can quickly fix your credit situation, no matter how atrocious it really is. These grandiose claims are one of the signs to watch out for. 3. If a company asks you to pay for credit repair services up front, that's a bad omen, indeed, because it's illegal. 4. Credit repair companies often discourage you from contacting the credit bureaus directly. 5. If somebody suggests that you apply for an employer identification number and use that instead of your Social Security number when you apply for credit, that's a telltale sign of fraud. 6. Credit repair scammers may advise you to dispute all the information in your credit report, even entries you know are true. You can read more about these types of companies at the FTC web site listed here www ... Hope this helps answer your question.
Source(s)
by Sgt Big Red
5 months ago
Asker's Rating: 
Other Answers
Did you look into bankruptcy? If you're that far into unsecured debt and now your pay has been cut, I would think bankruptcy would be better than jacking around with these guys. Typically, you need to be 3 or more months delinquent on credit cards for them to offer you a deal. The deal usually isn't all that sweet. They will settle for about 2/3 of what you owe them, stop the interest accruing, stop the late fees. So on $40,000, even after what you've paid New Beginnings, you'll still need to come up with about $26,500 which generally must be reapaid in 3 monthly payments: So about $8,800 per month to avoid any more interest and penalties. Some carriers wait 4 or 5 months to make you the offer. If you make less than $60,000 per year (generally--it varies by state), then you can file a chapter 11 bankruptcy and owe nothing. Your credit is already in the toilet, so I don't know what difference a bankruptcy would make to you now. You can keep secured assets as long as you keep those payments current (like car and house). Bankruptcy is not the IDEAL place to be, but it's there for a reason and from what you've said, you look like one of those reasons. As to New Beginnings, they are not registered with the Better Business Bureau in Jupiter, FL and that might give me cause for concern.
by intheleast- 5 months ago
Per your update: - No debt settlement firm can force BOA or any creditor to accept any settlement. This is a common misunderstanding...many people who sign up with these firms assume that they have special powers to force settlement on your creditors...they don't. Your creditors have the perfect right to refuse any settlement from New Beginnings or any other debt settlement firm - As your accounts go way past due your accounts will get hit with big late fees which could increase your amount of debt, which would reduce the benefits of any settlement - As I mentioned below, debt settlement is a risk...it's up to you if you want to take this risk...If you're lucky all your creditors will settle and you will have reduced your debt by 50%....Even if this works, perfectly, the IRS considers forgiven debt to be exactly the same as earned income, so this means that you'll have to add the forgiven amount ($20,000) as earned income and pay taxes on that.. - If any of your creditors decides to take legal action, this company cannot provide any legal assistance to you and you'll be on your own. If they win a judgement you could be looking at wage garnishment - Seriously, if you want to take the risk that goes with debt settlement, then you can do this yourself....You can always attempt to cut your own deals with your creditors...FYI: You really need to be at least 3-4 months behind to get settlement offers...More like 5 months really - Almost every penny you are paying this firm right now is going towards their administrative fees. If you want to take the risk of being sued, then I guess you should continue with this program with New Beginnings or do the debt settlement on your own. Ask yourself, if someone owed you $40,000 and they stopped paying, then you'd probably take aggressive action against them, right? You should probably consult a BK attorney about filing for Chapter 7. You are not obligated to file...just keep all options open. =============================== If you can live with ruining your credit and the real threat of being sued by your creditors, then you can attempt your own settlements. You don't have to pay anyone to ruin your credit rating for you to attempt settlements...you can do this yourself for free by ceasing payments to your creditors for several months....I strongly advise against this tactic though. If you qualify to file for Chapter 7 bankruptcy, then you might want to think about this as an option as it would truly void out your debt. Don't let anyone guilt trip you if you need to do this...do what's best for you and your family.
by CatDad- 5 months ago
Sure you could just try and settle with the credit card companies yourself, same as you could serve as your own attorney in a criminal case. I wouldn't recommend it, but you could. Wouldn't you rather have professionals handling it though? I wrote a blog post about this the other day, if you want to check it out, www ...
by Frank Fitton- 5 months ago
Your credit is now trashed and you have wasted money on these guys. BofA will probably ignore them and come after you.
by MadMan- 5 months ago