IS DEBT STRESSING YOU OUT? WHY AN INFORMAL ARRANGEMENT?
Sometimes life can throw you a curve ball and leave you in a sticky situation and you just need some temporary help to get you back on your feet. You may have lost your job, having troubles dealing with creditors or just need some temporary relief due to illness. You may find yourself turning to your credit card, relying on a payday loan to get you through and robbing Peter to pay Paul which can just make a situation worse.
An Informal Arrangement is an instrument that allows you to manage your debt through a simple repayment plan, allowing you to get on with life without the hassle of debt collectors hounding at your door. Here at Debt Cutter, we have assisted thousands of Australians like yourself out of their debt crisis. Our Informal Arrangement specialists are there to assist you the whole way and guide you through your arrangement and out the other side with a fresh start. There is a way out.
WHAT IS AN INFORMAL ARRANGEMENT?
An Informal Arrangement is an arrangement where we assess your individual situation and then negotiate with your creditors to change the terms upon which the debts will be repaid for a temporary duration. In other words, we work to formulate a budget then seek to lower your monthly payments, reduce interest and/or buy you more time.
There is a number of flexible repayment options that are possible through an Informal Arrangement brokered by Debt Cutter. These include
- An extension of the term of a loan
- A short term reduced repayment (which is usually accompanied by an interest rate reduction)
- A short stay on payments (otherwise known as a payment holiday)
- A debt settlement
This is dependent upon your individual circumstances and the acceptance criteria of the particular creditors involved.
WILL AN INFORMAL ARRANGEMENT SUIT ME?
An Informal Arrangement is a suitable option for eliminating debt stress in a broad variety of circumstances. Informal Arrangements are ideal for you if you do not meet the legislated criteria of a Part IX Debt Agreement. They are particularly beneficial in circumstances where you only have a small number of creditors and are confident in your ability to maintain reduced payments to them. Similarly, this option is useful if you are experiencing temporary changes to your situation which is causing issues servicing your debts, but you are likely to be able to make the normal repayments again in the near future.
An Informal Arrangement is a good idea if your financial difficulties are only short-term, as it can be set up in a small timeframe and does not get recorded on the debtors credit file.
This debt solution gets rid of the stress and anxiety of how you are going to make payments each month as we handle paying your creditors on time. Importantly, it helps to avoid legislated options that can have long term repercussions.
HOW DOES AN INFORMAL ARRANGMENT WORK?
We can negotiate an Informal Arrangement for most “unsecured” debts (which are not secured by an asset). These debts include credit cards, unsecured or personal loans, store cards, debt owed after repossession, disconnected utility bills, phone bills and accounts in collections.
When an Informal Arrangement proposal is accepted, you only need to make one regular payment to us, and we will regularly disburse these funds to creditors. To date, our money management systems have been the salvation for thousands of Australians who otherwise may not have been able to afford to repay their debts and establish a bright financial outlook for the future.
Informal Arrangements are usually negotiated on a 3-6 month term, which can be extended. We assess each person individually as each situation is unique. It usually takes about 5 weeks to set up an Informal Arrangement once we have all the required information. The time it takes to clear a debt is mainly dependent on your financial situation and what you can afford.
Once Debt Cutter brokers an Informal Arrangement on your behalf, we act as your authorised representative. During the negotiations creditors will contact us as the administrator, as we will be managing payments.
WHAT ARE THE CONSEQUENCES?
Your creditors are under no obligation to accept your offer of reduced payments, and if they do accept, they can cancel the agreement after just one missed payment. If they accept they will review your situation on a regular basis (usually 6 monthly) unless your situation is unlikely to change.
WHAT IS THE NEXT STEP?
Debt Cutter is dedicated to helping people turn their lives around and has helped thousands of Australians take control of their finances. We care, because we’ve been there and it is our goal to help people get their lives back. 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 .