Debt Agreements in Melbourne
Our Affiliate, Australia Wide Administrators is a trusted and registered debt agreement administrator, the team at Debt Savvy can refer you to Australia Wide Adminstrators to facilitate debt agreements and ensure that you understand exactly what this will entail. Before we do however we also ensure that all other options are fully explored prior to presenting this option as it can have an effect on your ability to obtain credit in future.
We’d love to see how we can help you better manage your debt providing you with understanding and the best solution.
What is a Debt Agreement?
Important things to consider when talking to any company about a potential debt agreement.
Like any major financial decision, a debt agreement is a serious step. Before considering entering into a debt agreement, be wary of companies who don't carefully assess your individual circumstances and make sure that:The administrator is registered - Legally and to ensure that you are receiving teh right advice the company must be on the Australian Financial Security Authority's list of registered debt agreement administrators. Just like we are.Ask about the fees you will incur as a result of the debt agreement - Companies usually charge fees for their services to administer this agreement. We provide full transparency on our fee schedule so you know what this will entail.
Debts that aren’t covered by a debt agreement or may have special conditions if they are included in the agreement.
Any debts as a result of fraud
Child support debt
Any court order penalties or fines
HECS or HELP debts or other student financial supplement scheme debts
Overseas debts incurred. Depending on the laws in the country where you signed the contract, any outstanding balances from overseas debt may also be required for payment.
What are the benefits of a Debt Agreement?
Better control over your financial situation - under a debt agreement you’ll know how much you’ll have to pay each week or fortnight to your creditors which will allow you to better budget and plan your finances.
The end of your unsecured debt - Once you complete the term of your unsecured debt you’ll be free from your unsecured debt.
Improved financial discipline - With no access to credit over the course of the debt agreement this will force you to live on what you earn, not what you can borrow. This is sure to set you up for a brighter future both mentally and financially.
What are the consequences of a Debt Agreement?
There are some consequences that you should be mindful of when entering a Debt Agreement:
Only debts in your own name are covered, with joint debts the other person/entity is still liable to make normal payments toward the debt
Only provable unsecured debts can be included in the agreement, secured debts such as car and home loans as well as state fines cannot usually be included in the agreement.