* Combine all of your repayments
* Freeze the interest on your unsecured debts
* Create a budget so we know what you CAN afford to repay
* Stop creditors from contacting you
* The debtor is released from most unsecured debts when they complete all their obligations and payments.

Consequences

* A debtor who proposes a debt agreement commits an act of bankruptcy. A creditor can use this to apply to court to make the debtor bankrupt if the proposal is not accepted by creditors.
* The debtor’s name and other details appear on the National Personal Insolvency Index (NPII), a public record, for the proposal and any debt agreement.
* The ability of the debtor to obtain further credit is affected. Details may also appear on a credit reporting organisation’s records for up to seven years.
* During the voting period creditors cannot take debt recovery action or enforce a remedy against the debtor or the debtor’s property; and must suspend deductions by garnishee on debtor’s income.
* All unsecured creditors are bound by the debt agreement and are paid in proportion to their debts.
* Secured creditors may seize and sell any assets (eg a house) which the debtor has offered as security for credit if the debtor is in default.
* Creditors cannot take any action against the debtor or property of the debtor to collect their debts.
* The agreement does not release another person from a debt jointly owed with the debtor.
* A debtor must disclose that s/he is a party to a debt agreement if incurring debt or obtaining goods and services in excess of the threshold
* If trading under a business name or assumed name (whether alone or in partnership) the debt agreement must be disclosed to all people dealing with the business

1. Pay your smallest debts first
2. Pay off credit card debts with savings. You will only recieve 8 per cent interest on savings which being charged on average 17 per cent on credit card debt
3. Brown bag it! – buying lunch every day could be costing you up to $3650 a year, so make a sandwich
4. Work out what it’s worth. The next time you buy something ask if it’s worth that many hours of your life at work
5. Seek help, talk to a debt consultant or a financial adviser, read and educate yourself

Unfortunately, Peter suddenly fell ill. After his sick leave ran out, he had to use credit cards to pay the home loan, help the kids at Uni and cover the cost of living. After 8 months he recovered but was left with $35, 000 in crippling credit card debt. After the mortgage and the bills he had to catch up on, he still had to pay more than $700 per month on his credit cards just to cover the minimum payments.

We organized a Mortgage Refinance for Peter and Susan. This allowed them to consolidate their Credit Card Debt into the mortgage and reduce their total repayments by $700 per month! The reduction in repayments allowed Susan and Peter to keep their home and stop the harassment from their credit companies. They are now able to meet their repayments and feel much more confident about the future.

Get your free phone consultation now by calling Debt Consolidation Info Australia on 1300 679 402 or fill in our Contact Form and we will be in touch within 24 hours.

Mark had to fire all of his staff to cut costs and began working 60 hours a week as a courier and doing night shifts as a cleaner to try to make the payments on the van. 2 years later his health is suffering and he hasn’t seen his son in what feels like forever. His cleaning work has dried up, the payments on the vans have fallen behind and all he can now think about are his financial woes.

Our experienced staff were there to help. Given the size of his debt and the fact that he had next to no income, Mark soon decided that a bankruptcy was the best solution for him. We worked through his financial situation and helped him realize exactly what was entailed in a bankruptcy, given his particular circumstances. We also handled all the legal work needed to get him approved as a bankrupt and took the stress out of the process for him. Mark was able to keep his first van and is now back to working 40hrs per week. Life is back to normal and he even manages his son’s AFL team on Saturdays!

Get your free phone consultation now by calling Debt Consolidation Info Australia on 1300 679 402 or fill in our Contact Form and we will be in touch within 24 hours.