What is a Debt Agreement?

Here is the Australian Financial Security Authority (AFSA) definition of a Debt Agreement:

A debt agreement is a binding agreement under Part IX of the Bankruptcy Act 1966 between a debtor and their creditors where creditors agree to accept a sum of money which the debtor can afford. Proposing a debt agreement is an act of bankruptcy.

So, what it means to you?

If you have low income and struggle to pay your debts you can negotiate with your creditors an amount of money that you can afford to pay, over a set period of time, to repay your debts with no further interest or fees.

Once you have paid the agreed reduced amount the creditors cannot recover the rest of the money you owe.

You must understand that debt agreements will impact your credit file and effect your ability to obtain further credit for a period of 5 years. You should only consider this option if you have explored all other debt consolidation opportunities.

Bad Credit is Not a Problem

If you have a bad credit rating and have not been successful in getting a debt consolidation loan, you can use a Part 9 Debt Agreement. Once a Debt Agreement is over, your credit file will recover quite quickly and you'll be able to borrow again.

Is Debt Agreement the Right Option for You?

The best way to make sure a debt agreement is the right option for you and understand the difference between debt agreements is to seek an advice form a professional debt agreement company.

Debt Help 24/7 is an authorised representative of a registered debt agreement administrator. Over the years we have helped thousands of people to get out of debt and avoid declaring bankruptcy by entering into a debt agreement.

Our job is to assess your financial situation, explain your options and determine if a debt agreement is the right choice and why.

Don't Wait Till It's Too Late

There are no miracles and you won't wake up debt-free tomorrow morning. However, in a few days you can get stress relief, regain your peace of mind and stop being afraid of "silent number" phone calls if you start acting, not just thinking.

"Nearly 50,000 people have used debt agreements during the past five years, resulting in a 20% decline in bankruptcies." The Sydney Morning Herald

We can negotiate with your creditors to write off anywhere between 30%-80% of your debt and pay the balance off quickly with affordable payments or with one lump sum payment.

Call us on 1300 496 224 now or simply fill in the form at the top and one of our consultants will contact you at a convenient time.