Struggling with personal debt? Looking for debt management or debt relief solutions and not sure where to start? Reaching our for help, as early as possible, is so important to make sure you have the best range of debt relief options available to you.
Debt Stress
Our team at Life After Debt ® are experienced in being able to assess your debt relief options in Perth, Sydney and throughout Australia. This may include a recommendation for debt management, hardship relief, exploring debt consolidation with external sources, contacting a Financial Counsellor, considering an informal debt agreement or formal Part IX Debt Agreement and alternatives to help you avoid Bankruptcy. Our initial assessment is free of charge and without obligation; just a great way to get professional debt advice.
Once hardship on debts like personal loans and credit cards have been exhausted and you still need help with debt – what do you do? Whilst you may want to consolidate credit card debt, you may not be able to if lenders are not willing to approve a loan consolidation – especially if you are looking for debt consolidation with bad credit.
A Debt Agreement (or Part 9 Agreement) is one debt solution for those who need debt help in Australia.
A Debt Agreement is an option to assist individuals with unmanageable personal debt and is a means to avoid bankruptcy in Australia. A Part 9 Debt Agreement Proposal generally comprises an amount to be paid to creditors based on what they can afford. The payments can be by regular instalments or a lump sum. If the offer is accepted by creditors, the Debt Agreement becomes legally binding under Part IX of the Bankruptcy Act between a debtor and their creditors. One key point in this method of debt relief is that the interest on the debts is frozen, or suspended, whilst the Debt Agreement is in place. As long as the terms of the Debt Agreement are complied with, upon completion the balance of debts are discharged and no interest or charges can be applied. Additionally, it provides the advantage of having one manageable payment instead of juggling several different payment arrangements.
A Part 9 Debt Agreement will be listed on your Credit File for 5 years, or until the Agreement is completed, whichever is longer. It is worth noting that standard default listings are for 5 years as well so it Is not usually longer than that if you have already experienced defaults, judgements, court action or bad credit. Like the defaults and judgements, a Part 9 listing on your credit file will affect your ability to get credit during that time.
Life After Debt ® has over 50 years’ experience in debt management and restructuring so our knowledge and expertise is put to work to ensure that we recommend the best debt relief option for you. You can call us on 1300 237 669 or use our contact form and we will call you. Don’t put up with unmanageable debt stress any longer – contact Life After Debt ®