Debt Agreement

A debt agreement is the middle ground between a debt consolidation loan and bankruptcy. It is a way for financially strained people to cover their impending debts now, without going bankrupt. It is a way to get financial help without losing your dignity. Most people in severe financial trouble prefer to take this course instead of filing for bankruptcy because it is less of a credit black spot and will keep their chances of getting credit in the future easier.

A debt agreement also combines all of your separate debts into one consolidated loan. The type of debts that can be bundled together must be unsecured debts such as credit cards, phone bills, bank overdrafts, personal loans, school fees etc. Debts with assets such as property or vehicles can not be considered for a debt agreement.

Debt agreements are cleared by the government and all stages of the process must be legislated by them. The agreement allows you to make one affordable payment per week or fortnight based on the amount they deem you can afford. This payment is deducted from the new consolidated loan you are given.

One benefit is that a debt agreement provides you with relief from the people you owe money to. Any legal action they take will be stopped and no more interest fees can be charged. A debt agreement does not attract any interest charges either, so all you have to repay is the principle amount owed. In time when you have cleared the amount owing on your debt agreement, all of your debts will be considered legally cleared.

The government has strict guidelines in place in regard to debt agreements and you must comply with all of them before the agreement will be approved. There are four main points.

1. You can not have a nett income greater than $1154.45 per week. (This amount varies from time to time)
2. he debts that can be included in a debt agreement can not add up to more than $80 000. Again the government sometimes changes this amount. The minimum amount of debt to consolidate is $10 000.
3. Your total assets can not be greater than the maximum amount of a debt agreement. This means you can’t have more than $80 000 in assets.
4. You can only get one debt agreement every ten years. If you have filed bankruptcy in the past it must also be more than ten years ago to be considered.

Some important points to consider before Debt Consolidation Today helps you with a debt agreement are

1. A debt agreement will be visible on your credit history for a seven year period.
2. All unsecured debts you owe must be presented. You can not just consolidate some debts.
3. Creditors do not have to accept a debt agreement. However if they reject it Debt Consolidation Today will resubmit it with amendments based on their reasons for rejecting the claim. It is very rare for a creditor to continuously reject a debt agreement.
4. The repayment terms of a debt agreement are very flexible. If you wish to make payments faster to clear the loan, there are no restrictions or fees. The only requirement is that you make the minimum periodic payment.

Debt Solutions

We have seen thousands of Australians benefit greatly from debt solutions such as well organised debt agreement. However they are complicated to create and having an experienced professional will not only save you time and money, it will let you concentrate on other things to do with your business or work.

All information is kept in the strictest of confidence so why not fill out our simple contact form now. We will quickly asses your situation and call you back with informed feedback about the best way to settle your debts. Who knows, maybe a debt agreement is not necessary and we can get a personal loan that will suit you more. The sooner you contact us the sooner you will find a solution. Why not do it now?