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3/20/2018 10:33:44 AM
Debt Agreements (also known as Part IX Debt Agreements) is a debt solution suitable for many people. In fact, around 16000* Debt Agreements are entered into in Australia every year.
So, what makes them good?
Firstly they are regulated by AFSA (Australian Financial Security Authority) so it is a binding agreement between you and your creditors to pay an amount you can afford. Secondly, all interest on debts is frozen. Yes, that means once you have started your Debt Agreement you won't be paying any interest on debts that are in the agreement. Your creditors are not allowed to harass you about making your payments. This comes back to the first point and is part of the legally binding contract between you and your creditors. For a lot of our clients, this is actually one of the biggest reasons for entering into a Debt Agreement - it's a big stress reliever! Lastly, a Debt Agreement is a simple repayment plan that can be structured so you only make one payment either weekly, fortnightly or monthly, you even get to choose the frequency of the payment.
What about the downsides?
There are always downsides to everything in life but weighing up if they affect you comes down to each individual. The biggest downside is that you won't be able to borrow money for the 5 years you are in a Debt Agreement. For many of our clients, this may not affect them too much as their credit rating is already in a bad position and that's why they ring us in the first place.
You can't put secured debts in a Debt Agreement. The most common types of secured debts are car loans and Mortgages. Any secured debts will have to be paid off separately from the Debt Agreement. Other debts that can't be put in a Debt Agreement are Traffic and Toll fines, Court Ordered Fraud Settlements or fines and Government Accumulated Help Debts.
How do I get started?
The best way is to contact Fast Debt Help so we can get an idea of your situation. From there we will be able to do a quick assessment over the phone of whether a Debt Agreement is suitable for you. If it is we can arrange for a specialist to visit you at your home or other suitable location to get the application underway. Fast Debt Help can guide you through the process and take away the stress your debts are causing.
* Source: https://www.afsa.gov.au/statistics/annual-statistics
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