Debt Management

If you owe less than $10,000 to more than one creditor and do not wish to follow a more formal route to consolidate your debts then you may consider entering into an informal arrangement. You can of course try to negotiate a debt management plan with your creditors, however on the whole they are more effectively used for smaller amounts.

 

A Debt Management plan is an informal type of debt consolidation and therefore your creditors are under obligation to accept the offers that you make. They are fully entitled to apply interest and if you are not paying your minimum contractual payments they can pursue legal action against you. Many people try to negotiate a repayment plan themselves, however, it can be hard not to cave into creditor pressure which can cause further stress and worry.

 

Australian Debt Solutions can set up an informal repayment plan for you. We will assess your income and expenditure and work with you to work out an affordable monthly payment. We will then look at your creditors (you must continue to pay your secured creditors as normal) and give you an estimated timeframe as to how long it will take you to repay your debts. We will then forward a repayment  plan to your creditors and negotiate with them until arrangements are in place.

 

The benefits of an informal payment plan are:

 

·             Consolidate your unsecured creditors.

·             Your creditors are paid in a fair way.

·             Trained professionals negotiate on your behalf.

·             Get used to budgeting.

·             Only one monthly payment to make.

·             Buy yourself some time before considering a more              formal solution such as a Debt Agreement.

·             Pay more off and when you can afford.

 

Debt consolidation in an informal fashion requires a great deal of negotiation and can take time to achieve a positive result.  Unlike a Debt Agreement or bankruptcy you will not be subject to the same restrictions if you were to pursue a more formal route of consolidation. If you would like to know more about informal arrangements please let us know by filling in our contact form by following the link at the bottom of the page.

If you feel an Informal Arrangement is not for you, why not look at Debt Agreements or Bankruptcy?

Australian Debt Solutions    

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