The turkey’s been eaten, the presents opened and you keep promising to take the decorations down. Yep – its January. Another annual event in January is waiting ~ or dreading ~ the credit card statements’ arrival.
If you have been struggling with debt already, then you can probably bet that Christmas didn’t improve that situation for you. And the New Year will mean that all those Creditors and Collection Agents will renew their attempts to recover their money first. The problem is, there is only so-much money to go around, right? And there are certain things which MUST be paid first; rent / mortgage, electricity bill, food on the table to name a few!
So many people we speak to desperately want help with their debt and are simply caught in the ‘debt-spiral’; you pay just enough on your cards or loans to keep going however its not enough to cover the interest and so you either stand still debt-wise or more likely, actually get further in debt.
A consolidation loan can sometimes help however, it will depend on whether you meet the lender’s credit criteria and also if it is affordable for you; please be sure to check the interest rate and terms and conditions. Usually, if you are in arrears, dealing with collection agents or facing legal action then new lending would not be possible.
Hardship assistance is only available to certain circumstances, as assessed by your lender. You must formally apply for hardship assistance with each Creditor and be assessed by their individual criteria. The form of assistance provided will vary depending on what your lender is willing to do, for example; reduce payments, amortise arrears or reduce interest. However, hardship assistance is only ever designed to be temporary ~ usually 3 months ~ so if granted, you need to use this time to plan for how you will cope once the hardship period has ended.
Once consolidation lending and hardship assistance has been exhausted, many people think that their only option is Bankruptcy; it is not.
A Debt Agreement is a means to combine all unsecured debt into one repayment package via a negotiation and agreement with Creditors. It provides you with legal protection from harassment, collection or legal activity plus the interest on your personal debt is frozen so you will have one manageable debt repayment based upon what you can afford to repay, not what the Creditors are demanding from you.
A Part IX Debt Agreement is a real alternative to Bankruptcy and will relieve you from the stress and worry of your debts. If you have a mortgage or car loan then these assets are also protected as long as all required payments are maintained.
Our team is experienced at assessing whether a Debt Agreement is suitable for you and if you meet the eligibility criteria; we will confidentially discuss your circumstances and provide free debt advice on your options available.
If you are struggling with debt and would like to become debt-free, contact us today for a no-obligation debt analysis and consultation https://www.lifeafterdebt.com.au/contact-us/