Everyone at least once in their lives struggle with money troubles which lead them to get into debt. And if you haven’t been making repayments on time, debt collectors will start to kick your door down until you make repayments. However, if you’re in a really tough bind where you just can’t pay back every dollar and every cent you owe to your creditor, there are a few options you can choose to get out of that debt.

You can either declare bankruptcy but this is the penultimate last resort because after you go bankrupt, it’s insanely difficult to get your financial reputation back on top. A Part 9 Debt Agreement is a less detrimental alternative to going bankrupt. This agreement involves negotiating with your creditor/s to come to an agreement of how much you can actually pay without having to pay the full amount owed. Of course, you still need to show evidence of your financial situation and why you sincerely cannot pay back in full. And for creditors, even though they want all their money back, they may still come to a compromise and agree to your proposal.

This is a form of renegotiating your debts down to a smaller amount. You can renegotiate your debts on your own without any professional help but you need to know everything about such negotiations and evidence to back up your negotiations.

Renegotiating Debts

It’s not just credit card debts you’re trying to negotiate, it can be other kinds of debts that may be larger than life and you just can’t realistically handle them anymore.

First of all, you need to get your facts straight. You need to find out how many creditors you owe and how much it’s actually costing you each month. You need to know exactly how much debt you’re dealing with before you decide on renegotiating debts. If the interest rates on your credit cards and other debts are actually higher than when you first got into them or if they are just too high for you to realistically pay them every month, you’re better off renegotiating them with your creditor. Not every creditor will approve but you can still renegotiate for a lower rate.

One of the other things you can do when it comes to renegotiating debts is to charm some or most of the customer service representatives. If your credit card debt with one bank is getting too troublesome, you can try transferring to another bank with better rates and better repayment plan. There may be transfer fees but you can research and compare each bank and every bank and find the best one with the best offers.

It’s always good to compare credit cards from different banks to see who’s offering the best deals. The same thing goes with other types of loans: personal loans, bad credit loans, debt consolidation loans. The more options to choose from, the better the offers get. So it’s always handy to know about the options before you even need them.

So if you’re thinking about renegotiating debts, you need to do proper research about your own financial situation and what you can do to make your situation better. If you still need help renegotiating your debts down, you can speak to one of our specialists at Australian Debt Agreements by filling out our quick enquiry form today.