A Debt Agreement is a way for you to reduce your debt, pause your interest and repay your debt in peace. If you are struggling with bad debt you would know how stressful it can be. Your creditors are chasing you for payment, you can't seem to get on top of your bills and the stress is starting to effect other areas of your life like your work and relationships.
The Basics of a Debt Agreement
A Debt Agreement is a contract between you and your creditors outlining a new repayment arrangement which is better suited to your circumstances. It needs to be negotiated by a professional Debt Agreement Administrator who will work with you to determine how much you can afford to pay.
From there they will approach your creditors and negotiate a new repayment arrangement. To enter into a Revive Debt Agreement you must have at least $10,000 in unsecured debts.
The Benefits of a Debt Agreement
A Debt Agreement is one of the most effective ways of reducing your debt. Once it has been approved you will be granted much needed time and grace to repay your debt without struggling with the stress. Each agreement is negotiated differently, but most commonly, a Debt Agreement will reduce your overall debt so you are only paying a percentage of what you owe.
Benefits also include pausing all the interest on your debts and creditors won't be allowed to hassle you for repayments. Entering into a Debt Agreement will save you from having to declare bankruptcy and the approval process is easy if you use a professional to negotiate the agreement.
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Understanding the Cons
While a Debt Agreement can be your saving grace, there are a few consequences you need to consider before entering into one. Entering a Debt Agreement is considered a form of Bankruptcy so your name will be listed on the National Personal Insolvency Index (NPII) for life. It will also be marked on your credit file, which may impact your ability to borrow more money.
However people who are in a position to enter a Debt Agreement already have many defaults and judgements on their credit file. If you are considering perusing this debt relief solution, you need to decide whether these small consequences are worth having the freedom to repay your debt in peace.
Revive Financial Can Help
A Debt Agreement is one of the most popular debt relief solutions in Australia with more than 3,400 Aussies entering a Debt Agreement last financial year. It is also one of the most effective. If you are struggling with debt and need a way to get back on financial track, talk to Revive Financial. Our Case Managers will listen to you and learn about your personal situation before making a recommendation. This way you can rest assured you are getting the best advice for your situation. Our Case Managers are experienced and knowledgeable and will deliver the best outcome. For more information or advice on a range of Debt Relief Solutions, including Debt Agreements and Informal Agreements, call us today on 1800 534 534 and Talk to an Aussie Who Cares.
For more information on Debt Agreements and how they can help you find financial relief, check out our Debt Agreement page.
