|- Are your credit cards over the limit?
Stop debt collector calls and cut your debts
by 20% to 50%
|- Do you have defaults on your credit
|- Do you have difficulties paying your
loans & bills?
| - Do you receive phone calls from debt
A debt agreement can solve your financial problems
Of the various choices currently available
to those who are struggling against overwhelming, unsecured debts,
the debt settlement program offers a positive alternative to the
most drastic response, bankruptcy. While credit ratings are still
affected for at least 7 years, the damage is less than if a full
bankruptcy had been declared. This step should be taken only if a simple debt consolidation is not possible.
This increasingly popular program is
designed to assist low income residents who are insolvent and thus
unable to repay their unsecured loans. It is necessary to meet both
income and outstanding loans guidelines to qualify. The applicant
must also have not used this debt management program or been in
bankruptcy within the previous 10 years.
By negotiating a reasonable compromise
with creditors, the debtor who qualifies for this plan will be committing
to repaying at the most 75% of the outstanding loans and bills.
However, all late charges and additional fees will be immediately
frozen. Also, the weekly one payment will be assigned based on income
and other financial responsibility which means it will be much more
manageable for the debtor.
The first step involves having a trained
financial counsellor, a debt agreement administrator, or a private
trustee file the necessary paperwork with ITSA (Insolvency and Trustee
Service Australia). The debtor will need to disclose all assets
and loans at this time. The trustee will become the negotiator who
works with creditors. A simple majority of creditors must agree
to the terms of the new financial arrangement. They will then work
directly with the trustee and no longer be allowed to harass the
This debt agreement
program, which is similar to the personal insolvency program, is
becoming more and more popular in Australia because it involves
lower approval levels and overall less operating costs for the person
who is already struggling with unmanageable loans. Making one weekly
payment to the trustee becomes much simpler than trying to make
multiple, more costly repayments to individual creditors. For an
opportunity to regain one’s financial freedom, this government-sanctioned
debt recovery program is definitely a positive alternative to the
much more severe consequences of bankruptcy.
Short term loans