Why a debt agreement helps with overwhelming debt.
Life is full of unexpected changes such as family emergencies, job loss and health related issues. All of a sudden that easy to manage weekly and monthly payment becomes MISSION IMPOSSIBLE. Your good credit has turned into bad debt. No matter what you do your income just doesn’t meet what needs to be paid anymore. Your friendly “credit” providers have become debt collectors demanding to be repaid. There appears to be no end in site.
A Debt Agreement is a legal instrument designed to provide debt relief to people struggling with unmanageable debt. At Debt Cutter, we have helped many thousands through their financial crisis and enabled them to turn their lives around through the use of a Debt Agreement. You only need to read through our Success Stories page to understand the saving grace this option has provided. As put by Kristine from Tasmania and echoed by many of our past clients “this is the best thing I ever did”.
There is a way out. GET HELP NOW
What is a debt agreement?
A Debt Agreement is formally called a Part 9 (IX) Debt Agreement, that is, Part IX of the Bankruptcy act. It was introduced by the Federal Government in 1996 to provide an alternative to bankruptcy to those who are financially overstretched.
Simply put, a Debt Agreement is a legally binding agreement between you and your creditors allowing you to renegotiate your situation.
- You make an offer to repay your current unsecured debts over an agreed period of time based on what you can afford, not what is owed.
- By accepting the offer, the creditors agree to reduce your debt and freeze your interest and release you from any further commitments at the end of the agreement period.
Will a debt agreement suit me?
Deciding whether or not a debt agreement is the best option for you can be daunting, at first. The truth is Debt Agreements are a real saviour to many, but the solution is not for everyone, there is qualifying criteria that needs to be met and you need to know what you’re up for.
In proposing a Debt Agreement you are declaring that you are insolvent. That is you are unable to pay your debts, as you originally committed to, when they fall due. Creditors agree to receive less than the original contract terms. The consequences of this need to be carefully considered, we can help you evaluate that.
There are a lot of uncertainties and questions to be answered. As a Debt Agreement administrator, Debt Cutter is qualified to assess your situation and discuss the ins and outs.
When you call Debt Cutter we will discuss your situation with you and make a detailed assessment before any commitment is required by you.
What if a debt agreement is not right for me?
Debt Agreements are designed to help specific situations. When you contact us you can be confident, if a Debt Agreement option is not the right solution, our friendly team will provide you with a range of debt management options that cater for your unique situation.
How does a debt agreement work?
A Debt Agreement is simply an arrangement to reschedule your current unsecured debt repayments into a single payment plan. In this way you can meet your obligations, to the best of your ability, over a period of time.
The process is managed by a Debt Agreement Administrator, like Debt Cutter. We are there to guide you through each step of the process. Helping you to meet your financial goals is our priority. We are here to help from the very beginning, when you are assessing your options, all the way through to completion of the process.
Debt Agreement Process Steps
THE RESULT: DEBT FREEDOM
Once all payments/obligations under the Debt Agreement have been completed you are released from the unsecured debts in the agreement. (Except Tax and Centrelink debt).
A Debt Agreement is a saviour to many, but a serious step to take and does have consequences for your credit file that need to be carefully considered. Many of our clients have expressed to us the relief they’ve experienced once their Debt Agreement is in place saying:
[su_quote class=”quote-big”]a substantial weight has been lifted off my shoulders[/su_quote]
What happens at the end of the Debt Agreement contract period?
Once a Debt Agreement contract is completed, creditors are notified and obligated to waive all outstanding payments. A Debt Agreement offers great debt repayment relief for you and majority of your unsecured creditors are not able to pursue you for any of the accounts you had paid within the Debt Agreement. (Tax Office and Centrelink debts can still be collected)
How do I get started?
Debt Cutter is dedicated to helping people turn their lives around and has helped thousands of Australians take control of their finances through the Debt Agreement process. We care, because we’ve been there and it is our goal to help people reach their financial goals. We are passionate about bringing our experience and empathy to helping you through the process.
Let us help you to Cut your Debt and Live your life.