Debt Cutter can help you enter into an Informal Debt Agreement

A Informal Arrangement with your Creditors is an agreement between you and your creditors.

Debt Cutter can negotiate on your behalf with your creditors, asking them to freeze interest, give you more time to pay, or in exceptional circumstances, reduce the principal amount owing.  We work with you to work out what you can afford, and negotiate an arrangement that will allow you to pay back your debt.  This means that the creditors stop calling and harassing you, because they know a plan is in place, and they know you can stick to it.

This arrangement is not Bankruptcy and is not a Part IX Debt Agreement, but is suitable for many people who do not or cannot consider these options.  It can help protect your credit rating and reduce your stress, because you know you have a solution in place.

Debt Cutter is able to make informal creditor arrangements with banks, credit card companies, loan companies, and many service provides such as phone companies, power and electricity companies, almost any creditor you owe money to.

There are also other options available to you.  Get an obligation fee Debt Consultation with one of our expert consultants to make sure a debt agreement is the right option for you.


Things to consider before entering into an informal arrangement

Make sure you’ve considered all the options available to you before enter into an informal arrangement.  You need to make sure that if you are asking creditors to give you more time, reduce or freeze your interest, or reduce your debt, that you can keep up your side of the agreement.  This means that you need to be sure that you can make the agreed monthly payments.

How an Informal Arrangement Works

If you qualify, Debt Cutter will work with you to work out how much you can afford to pay and help you prepare a proposal for your creditors.  Debt Cutter will approach all your creditors and present your proposal, negotiating carefully with each creditor to achieve the best outcome for you.  You can set up your informal arrangement as one monthly payment, if you want to make things easier for yourself.

This is not a binding agreement, it relies on you keeping your side of the agreement.  If things change for you, then Debt Cutter can talk to the creditors again to work out a different solution.

Debts that are not included in an Informal Arrangement

It is possible include almost all debts in an Informal Arrangement.  However, as it is a informal arrangement, often it will depend on the creditor, and whether they are willing to accept payments over time, or any other proposal that is being offered.

Impact of an Informal Arrangement

As the Informal Arrangement is not binding on creditors, they may reinstate your entire debt (less what you have paid to date) if you break your side of the agreement.  You need to communicate with us regularly, so we know your financial situation and can deal with any issues you may face if your financial circumstances change.

To find out more about what solutions are available to you, click on the options below:

Formal Debt Agreements

A Part IX Debt Agreement is a legal agreement with your creditors under the Bankruptcy Act.  It is not the same as bankruptcy, and for some people, it is a better solution.

Expert Debt Consultation (Free)

By talking to our experienced and understanding debt consultants you will get a clearer picture of what solutions are available to you after just one call.

Debt Management Plan

Debt Cutter has various strategies to help you improve your credit score.

Credit Score Improvement

Debt Cutter has various strategies to help you improve your credit score.


When there is absolutely no way you are able to pay back your debts, it may be time to consider bankruptcy.

Financial Counsellor

Financial counsellors are an independent free service supported by State Government, Federal Government and some cases charity groups to assist people in financial difficulty

Debt Refinancing

When your debts are piling up and you are struggling to make repayments, debt refinancing may be the best solution for you.