Informal Arrangements

If you don't qualify for a Debt Agreement - or your job situation prevents you from applying - an Informal Arrangement may provide an affordable alternative solution.

Informal Arrangements are negotiated between an administrator and your creditors on your behalf. Outcomes are designed to be affordable and are based on your current situation.

Benefits of Informal Arrangements

      • Does not require a good credit record
      • Payments are negotiated within your budget and can be made in line with how you're paid - weekly, fortnightly or monthly.
      • It will generally stop the harassment calls
      • In most cases interest is frozen
      • No limitations on income, property and other asset ownership
      • Informal arrangements are not registered on your credit file
      • Informal Arrangements do not affect your work qualifications or licenses
      • You make a single Direct Debit per payment cycle to cover all your liabilities

Limitations of Informal Arrangements

  • You are not protected by Government legislation, so creditors may make changes or contact with you if you fall behind  Notes with Fast Debt Help
  • Payments may have to be continually re-negotiated
  • Creditors may refuse to negotiate (but administrators will try to work around this)

Notes with Fast Debt HelpIt should be noted that communicating with your administrator usually resolves issues around creditors contacting you.


Debt Agreements are controlled by government legislation while Informal Arrangements are not.

Once Debt Agreements are approved, all creditors must adhere to the term. With Informal Arrangement, each creditor must be happy with the offer before they will accept it. However, most Creditors will normally come to an arrangement.

If you are in a career that may be affected by your credit rating, or you are outside the government thresholds that allow for Debt Agreements, or you think your circumstances may change for the better in the short term, then an Informal Arrangement is a very good option.

You will need to maintain the regular minimum repayments to that creditor.

Unlike a Debt Agreement, there is not an entry on your Credit File that says you are in an Informal Arrangement with your Creditors. As long as you keep up with your repayments according to any arrangement made you shouldn't get a default from your debt. However if there is already a default on your credit rating for that debt, it does not remove it. It will not prevent a creditor putting a default on your credit file if you miss payments. However they must go through the correct process to do so.

As long as you can make an acceptable offer of payments to your creditors, there are no restrictions on the amount.

Generally the same debts as with a Debt Agreement, so just about any kind of unsecured debt can be included. Some common examples are credit cards, personal loans and tax debts. Also repossessed cars, debts to friends and relatives and Debt Collectors. If someone will agree to a payment plan it can go in.

An informal arrangement is quite often the best way to handle debts to people you know, as the repayments can be quiet flexible.

Yes, joint debts are particularly suited to Informal Arrangements. Generally a deal can be put in place that handles the situation for both parties. It is important to figure out both you and your partner’s financial situation when doing this.

Direct debit accounts are typically set up to allow you to make one lump sum or regular ongoing payments into a Trust Account. The Administrator will then distribute the money to all of your creditors on your behalf.

Yes. There are no restrictions on travel.

Yes you can. There are no restrictions on running a business or being a Company Director.



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