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.
What are the 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
- Payments may have to be continually re-negotiated
- Creditors may refuse to negotiate (but administrators will try to work around this)
It should be noted that communicating with your administrator usually resolves issues around creditors contacting you.
Informal Arrangements FAQs
+ How is an Informal Arrangement different to a Debt Agreement?
+ What happens if a creditor doesn't accept the agreement?
+ Will an Informal Arrangement affect my credit rating?
+ Is there a limit to the amount of debt that can be negotiated?
+ Can company or business debt be negotiated and included?
+ Can I enter into an Informal Arrangement on Centrelink payments?
+ What debts can be included in an Informal Arrangement?
+ What about debts to friends and relatives?
+ Can joint debts be included in an Informal Arrangement?
+ How do I make repayments on an Informal Arrangement?
+ Can I travel overseas when in an Informal Arrangement?
+ Can I run a business in an Informal Arrangment?