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 a negotiated payment arrangement for your personal loans, credit cards and old debts. They will be negotiated by the administrator with your creditors, on your behalf. It is not a loan, it is a payment plan negotiated for you.
We will minimise the interest you are paying on your credit cards and personal loans as much as possible, and sometimes even get it frozen. Outcomes are designed to be affordable and are based on your current situation. We will do a budget with you to make sure your payment plan is sustainable.
You will have one automatic payment you must maintain that is conveniently structured to come out to coincide with your pay cycle. The administrator will then distribute the payments to your creditors on your behalf. There isn't a fixed term as this will be determined by your budget and the negotiations we do with your creditors.
Informal arrangement are generally accepted by creditors when there is a good reason for you falling into financial trouble. Life events such as sickness, loss of employment or income, relationship breakups and accidents are common acceptable causes of debt. There is no limit to the amount of debt or income you may have, but you must be in financial hardship.
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 a lot of cases interest is substantially reduced or frozen on your debts
- No limitations on income, property and other asset ownership
- 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)
- Missed creditor payments now show on your Credit Report for 2 years
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?