At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About New Day Financial
New Day Financial is a debt settlement company headquartered in San Diego, California, founded in 2011. The company has resolved over $400 million in consumer debt and specializes in serving clients who are experiencing acute financial hardship — specifically job loss, medical emergencies, disability, divorce, and death of a spouse. This focus on hardship-driven debt distinguishes them from settlement companies that primarily serve consumers with long-term overspending patterns. The operational difference shows up in two areas. First, their intake process is designed to handle fluctuating income — they build programs with variable deposit schedules that accommodate unemployment benefits, sporadic freelance income, disability payments, and other non-standard income streams. Most settlement companies want a fixed monthly deposit; New Day works with whatever you can put in this month and adjusts as your situation changes. Second, their negotiators are trained to present creditors with hardship narratives rather than just balance-and-offer numbers, which can shift creditor willingness to settle for less. New Day charges 15-23% of enrolled debt on a performance basis and serves approximately 42 states. Their BBB A rating and AFCC accreditation indicate solid industry standing. Client feedback highlights the flexibility of their payment structure as a key differentiator — particularly for people whose income is unstable during the program.
Key Features
Variable Deposit Scheduling
Unlike companies that require a fixed monthly payment, New Day adjusts your deposit schedule based on your actual income each month. Getting unemployment this month? Deposit $300. Landed a freelance gig? Put in $800. They flex with you.
Hardship Narrative Approach
Their negotiators present creditors with documented hardship stories — not just numbers. A well-crafted hardship narrative can be the difference between a 50% and a 40% settlement.
Crisis Financial Planning
They do not just settle debts. They help you triage your entire financial situation during a crisis — which bills to prioritize, how to protect essential assets, when bankruptcy might make more sense.
No Upfront Fees
Performance-based model. You pay nothing until a debt is actually settled and you approve the terms.
Attorney Referral Network
If creditors pursue legal action, New Day connects you with attorneys in their network who handle debt collection defense. Not free legal representation, but a warm referral to someone who knows your case.
How It Works
Crisis Consultation
You talk with a specialist who assesses your hardship situation, current income (or lack thereof), and total debt picture. They will be straight about whether settlement, a DMP, or bankruptcy makes the most sense.
Flexible Program Design
Your program is built around your actual financial reality — not an idealized budget. Deposit amounts can change month to month as your income fluctuates.
Hardship Documentation
The team helps you compile documentation of your hardship for use in creditor negotiations.
Negotiation
Negotiators work your accounts using your hardship narrative to push for the lowest possible settlements. You approve every deal.
Recovery
As debts settle, you stabilize financially. Most clients complete the program in 24-48 months, though variable deposit schedules can extend timelines.
What They Do
- Debt Settlement
- Hardship-Based Negotiation
- Crisis Financial Planning
- Attorney Referrals
- Creditor Communication
Debt Types They Take On
- Credit Cards
- Medical Bills
- Personal Loans
- Private Student Loans
- Store Cards
- Collections
- Payday Loans
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Medical Emergency with Job Loss
Client suffered a workplace injury requiring surgery and 6 months of recovery. Lost employment during recovery and accumulated $48,000 in credit card debt (used to cover mortgage, utilities, and family expenses) plus $14,000 in medical bills. Workers' comp covered partial income but monthly obligations exceeded payments by $1,800.
Spousal Death Leaving Single-Income Household
Client's spouse passed away unexpectedly, leaving $37,000 in joint credit card debt on a single income of $3,600/month. Combined minimums of $1,200/month were impossible to maintain while also covering mortgage and childcare for two children.
Pros & Cons
Pros
- Variable deposit scheduling accommodates unstable income situations that fixed-payment programs cannot handle
- Hardship narrative approach consistently produces lower settlement percentages for documented hardship cases (medical, job loss, death, disability)
- Crisis financial planning goes beyond debt settlement to help you triage your entire financial situation during an emergency
- AFCC accreditation and BBB A rating provide meaningful industry credibility
- Handles payday loan debt in addition to standard unsecured debts
Cons
- Variable deposit schedules can extend program timelines beyond 48 months if income remains low for extended periods
- The hardship-focused approach adds less value for consumers whose debt resulted from gradual overspending without a specific triggering event
- CFPB complaint count (72 in 3 years) is higher than some competitors of similar size
- Fee range (15-23%) is standard but not the lowest available
- Not available in all 50 states
User Reviews (10)
flexible payments saved me
Lost my job 3 months into the program. Other companies would have dropped me. New Day let me go down to $200/month until I found work again. That flexibility is worth everything when you are in crisis.
good for crisis situations
If you are in a real crisis — medical, job loss, death — New Day is built for you. If you just overspent and want the cheapest settlement deal, bigger companies might be better. My situation was a medical emergency and they handled it well.
attorney referral was clutch
Capital One sued me at month 14. New Day connected me with an attorney who knew my case already because the negotiator had briefed him. Settled pre-trial at 41%. Without that attorney connection I would have been lost. That referral network is a real benefit they dont advertise enough.
understood my situation
My wife passed and I was drowning in our joint debt. New Day treated me like a human being not a case number. Settlements were great — under 40% on most accounts. The death certificate documentation made a real difference.
fees were high for average results
Was charged 22% of enrolled debt. My settlements averaged 48%. That is not bad but it is not good enough to justify 22% in fees. A bigger company might have gotten 42-44% settlements AND charged 18-20%. The hardship approach helped on my medical bills but the credit card settlements were totally average.
thank you
Thank you. Just thank you.
decent
decent
variable deposits extended my timeline
Because my income was inconsistent I could only do $300-$400 most months. Program that was supposed to take 30 months is now at month 38 with 2 accounts still unsettled. The flexibility is nice but the extended timeline means more months of damaged credit and collection calls. Be realistic about how long this actually takes when you cant make big deposits.
fine I guess
fine I guess
missed a settlement deadline
My negotiator had a settlement offer from Discover that expired in 72 hours. He was "out of the office" and nobody else could approve the payment from my escrow in time. The offer expired. The NEXT offer from Discover was 8% higher. I paid thousands more because someone took a long weekend. I filed with the CFPB. This is inexcusable when you are handling people's financial lives.
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Important Debt Relief Disclaimers
- Debt settlement programs may negatively affect your credit score. When you enroll, you typically stop making payments to creditors, which results in late payments, collections, and potential charge-offs on your credit report.
- There is no guarantee that a debt settlement company can settle all of your debts or reduce them by a specific amount. Creditors are not required to negotiate or accept settlement offers.
- Debt settlement fees are typically 15%-25% of the enrolled debt amount. You should not pay fees before a debt has been successfully settled. The FTC prohibits debt settlement companies from charging upfront fees before settling at least one debt.
- Forgiven debt of $600 or more may be considered taxable income by the IRS. You may receive a Form 1099-C from creditors for canceled debt. Consult a tax professional about potential tax consequences.
- Creditors may continue collection efforts, including lawsuits, wage garnishment, and bank levies, while you are enrolled in a debt settlement program. A debt settlement company cannot guarantee protection from legal action.
- Alternatives to debt settlement include debt consolidation loans, credit counseling through nonprofit agencies, debt management plans, and bankruptcy. Consider all options and consult with a licensed financial advisor or attorney before enrolling in any debt relief program.
- Zogby does not provide debt relief services. We are an independent comparison service. We do not negotiate with creditors on your behalf or manage debt settlement accounts.
This page is informational, not financial or legal advice. Talk to a qualified professional before making any big money decisions.
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