Simply, a debt agreement is a formal arrangement between you and your creditors to settle unsecured debts. It’s for people that can’t get a loan, are struggling and want to avoid bankruptcy. A debt agreement is an option that does not involve borrowing money or paying interest. With the consent of your creditors, typically you will be required to make one, affordable repayment to settle your debts over a relatively short period of time.
A debt agreement can only be entered if the debtor is insolvent, i.e. unable to pay their debts as and when they fall due.
If you’re uncertain if you fit the above criteria, don’t hesitate to pick up the phone and call our debt consolidation consultants on 02 9798 1580, as there is always a chance you have miscalculated a bill, or you have not taken into consideration a monthly expense e.g. gym fees.
Some examples of unsecured debts include credit card debt and unsecured personal loans – that is, a loan that does not use an asset (like your home) for security. See a list of unsecured debts here.
