As the economy tightens, more people are being forced into untenable financial situations. One alternative to filing bankruptcy, which can affect security clearances and future creditworthiness, is to enter into debt arbitration. New Horizons Debt Relief is a company that specializes in debt arbitration and understanding more about their services can save consumers time, money and the embarrassment of bankruptcy.
Function
New Horizons Debt Relief's programs act through a cycle of savings and settlements. In essence the debt owed by the consumer to the credit-holding agency (for example, credit cards) is determined by New Horizons. New Horizons then negotiates a payment schedule and a total pay-off amount for each account owed by the consumer. The minimum amount is paid by the consumer and a preset amount is sent to New Horizons to be placed in a debt-payment savings account. When a predetermined amount of money is accumulated in the saving account, New Horizons pays off the negotiated settlement amount, allowing the credit-holding company to get a portion of the money owed as well as allowing the consumer to settle for a fraction of what is owed.
Time Frame
The program length of New Horizons varies from as short as 15 months to as long as three years. The program can vary depending upon how much money the consumer owes and how fast the consumer can accumulate savings to pay off the negotiating balance. New Horizons encourages the consumer to place all credit cards and other unsecured debt into their program to maximize the effectiveness of its program.
Benefits
If the consumer sticks with the program set up by New Horizons, the consumer can pay off their debt and restore credit rating in a more positive manner than through bankruptcy. Bankruptcy is an expensive, lengthy and often embarrassing legal process by which the consumer's lawyer and the lawyers of the credit-holders argue and negotiate over the debt and may result in loss of real property or other assets. Additionally, bankruptcy adversely affects a consumer's credit rating and creditworthiness for years and may prevent prime interest rate loans for houses, cars or other major purchases.
The benefit of a credit arbitration solution, such as that offered by New Horizons, is that debt is handled without legal filings, is much cheaper than bankruptcy, and preserves (or in some cases improves) the consumer's credit score and creditworthiness. Additionally, the program can also be used to pay off secured debt, though New Horizons will not negotiate on the consumer's behalf for those types of debts.
Warning
Dealing with new Horizons does not mean that collection calls will stop nor that collection notices will no longer come in the mail. Instead, calls may continue and letters will most likely continue to be sent. New Horizons encourages its clients to stick with the program and gives the consumer the tools to deal with those calls, including referring those collection calls to the New Horizons agent assigned to the consumer's account.
Also, New Horizons cannot assist with secured debt such as those tied to student loans, houses, cars and other large-ticket items. The result may be that while the collection calls from some credit-holders may stop, the secured debt collections may continue.
Identification
New Horizons is a member of U.S. Organization for Bankruptcy Alternatives, or USOBA, as well as International Association of Professional Debt Arbitrators, or IAPDA. USOBA is a industry "watchdog" group similar to the better Business Bureau, where the industry polices itself and issues ratings and standards of conduct. The IAPDA is the organizing body that issues accreditation for debt solutions companies and ensures their compliance with ethical and legal principles set forth by the industry, states and federal government.
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