Thank you for reaching out to Debt Busters. As your chosen partner for financial freedom, Debt Busters are here to support you in becoming debt free. We understand that sometimes life gets in the way and results in unmanageable debt, but it’s important to know that you don’t have to deal with it alone. Let us walk you through the main ways you can deal with unmanageable debt and how we could lend you hand in this journey.
Depending on your specific circumstances there are various steps you can take to get your finances back on track, in a suitable and affordable way for you and your family.
Firstly, if you haven’t spoken to your creditors yet, that should be your first step. Most creditors offer hardship programs that allow you to place payments on hold for up to 3 months at a time allowing you to catch your breath. This option is most suited to those with temporary financial issues and who do not require long term assistance, such as a temporary reduction in income or unforeseen additional expenses.
If your credit rating hasn’t yet been affected by missed repayments, you can also talk to your bank about a debt consolidation loan, which allows consolidating all smaller debts into one by making just one repayment. However, if your credit file has been impacted by missed payments already, be careful about making several loan applications as each one will have a further negative effect on your credit rating.
There are also budgeting services available for those who simply need some help managing the repayments, or you can turn to a free financial counselling service by calling 1800 007 007 who can also help you with budgeting, or in some cases talk to your creditors on your behalf.
If your circumstances have changed significantly and you need long term assistance perhaps due to a relationship breakdown, a failed business, health issues, a growing family or anything else. If that’s the case with you, the following options may be better suited to you.
A Debt Agreement is a debt relief program designed to help people get out of debt. It is a legally binding agreement between you and your creditors where you pay one affordable payment only and all the interest on your included debts are frozen! Due to being regulated by law, it stops your creditors from getting in touch with you and the payment is calculated based on your affordability, in most cases resulting in an overall reduction in your debt level. It also prevents you from getting further into debt and is a great way to establish new healthy financial habits.
You could also come to an arrangement with creditors, which is exactly what an Informal Payment Arrangement is for. An Informal Payment Arrangement is an arrangement where we negotiate with your creditors on your behalf, allowing you to make one regular and affordable payment to us and we distribute the payment between the creditors based on the agreed payment arrangements. In most cases we can get creditors to also stop the interest. The best news is that an Informal Payment Arrangement does not impact your credit file if all payments are made on time!
Should you ever come across any excess funds, we can use these funds to try and settle one or all debts and save you some money we know you much rather spend elsewhere! Our team of debt negotiators has dealt with hundreds of creditors in the past and know how to get Debt Settlements accepted with the best possible outcome for our clients.
Lastly, we also acknowledge that sometimes bankruptcy is the best option to start a clean slate and move forward. Due to the curveballs that life throws, sometimes you may not be able to repay your debts and that’s OK. Bankruptcy will absorb the majority of your debts and provides immediate relief, however, depending on your individual circumstances, may impact your assets, income, ability to travel, employment, and future borrowing ability.
If the list of different options seems a little overwhelming and you are unsure what’s best for you, book a call with us on 1300 368 322 to go through your individual circumstances and let us help you make an informed decision. You have already taken the most important step in seeking help, now you just need to see it through, and get in touch with one of our friendly Debt Management Consultants now!