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What is Debt Negotiation?

Debt Negotiation is an informal arrangement between you and your creditors, managed by Debt Savvy.  In order to pay your obligations back, you make one single monthly payment as part of your plan, which goes toward repaying your unsecured debts.

With Debt Negotiation there is no guarantee that interest and/or changes will be frozen. If they aren’t frozen, it will result in paying back more over a longer period of time. 

Who informs my creditors about the Informal Arrangement?

One of the benefits using Debt Savvy for an informal arrangement is that we will contact your creditors, explain your situation, show them your income and expenditure and make an offer of payment to them, on your behalf.

Pros and Cons of Informal Arrangements


Annual Reviews

  • Debt Savvy review your situation annually and make relevant updates


  • Debt Savvy will ask your creditors to freeze interest and charges when sending offer of repayment

  • However, there is no guarantee they will be frozen


  • Monthly repayments are set at a level you can realistically afford, after all your essential living costs and any priority payments have been accounted for


  • Debt Savvy will manage your debt plan and liaise with your creditors on your behalf, which should reduce the level of contact you receive from them


Excessive expenditure

  • Creditors may measure income and expenditure using guidelines of what they consider to be acceptable, which means that they could query or ask for justification of any expenditure which they consider to be excessive


  • You will still be open to further action on your accounts, such as legal action.

  • There is no protection for your assets.


  • You remain fully liable to pay your debts until they are paid in full. This means it is likely to take much longer and cost more than alternative debt solutions.

Other useful facts:

  • Any change in circumstances may alter the length of your plan and the amount you are paying

  • Early settlement is available if you wish to pay a lump sum off your debts or even make a full and final offer if, for example, you receive a windfall

  • An informal arrangement in itself will not show on your credit file, however, if you have recently been experiencing financial difficulty, such as missed repayments, then your credit rating is likely to have been affected by this already.

For immediate and free debt advice please call Debt Savvy on 1300 912 197 or use our Debt Help Assessment Form to submit your debt problem online.