Things were tracking along nicely. You were managing your payments, bills, rent and expenses and living a good life as well.
Then the unexpected happens- you have an accident, get sick, have a family emergency or suddenly lose your job. It doesn’t take much longer than one missing pay cycle and you’re behind on payments.The phone calls are flooding in, your stress levels are rising, your health, ability to get a new job and resilience to stress are out the door. You’re helpless and the debt just keeps mounting.
What do you do next?
In a situation like this, a place many people find themselves, a Debt Agreement can assist to turn lives around and help people through financial crisis.
Debt Agreements act as a way out of mounting debt and are a legal tool designed to provide debt relief to people who are struggling to manage their money.
Credit Counsellors have helped many people to find a way out of their unmanageable debt by assisting them to turn their lives around with the use of a Part 9 Debt Agreement.
What is a Part 9 Debt Agreement?
A Part 9 Dept Agreement is just that- Part 9 of the Bankruptcy act. It was introduced in 1996 by the Australian Federal Government as a way to provide an alternative to bankruptcy for people who had unmanageable debt. It works as a legally binding agreement between you and those you owe money to (creditors) and allows you to renegotiate your situation.
The process of renegotiating your situation involves you committing to repay your unsecured debts at a certain rate over an agreed period of time based on what you can afford. This is especially helpful because it is not based on what you owe.
Is it right for me?
When you work with Credit Counsellors to find the best ways to manage your debt we will give you the best advice possible to suit your specific situation. You will likely have a lot of questions and will be feeling overwhelmed and uncertain. This is completely normal and our staff have all been trained and qualified to assess your situation and to help you make the best decision possible.
Debt Agreements are not for everyone, that’s why we work closely with each individual client to make sure they meet the qualifying criteria.
Choosing to take on a Debt Agreement does mean that you are declaring yourself insolvent- that you can’t pay what you originally committed to. The creditors are also choosing to agree to receive less from you than what you originally signed up to pay.
There are consequences to this type of agreement; we will run through all of these with you when we discuss options to assist you in your situation.
If you think a Debt Agreement might be the right choice for you, or simply have some queries about how Credit Counsellors can help you manage your debt, then contact us on 1300 661 671 or visit http://www.creditcounsellorsaustralia.com.au/contact/ to receive qualified advice that will help you manage your debt, freeze interest and work towards being debt free.
