A Debt Consolidation Loan is worth considering if juggling multiple payments is causing you to get behind. Debt Consolidation loans can help to reduce the repayments in some cases. However, caution is needed to ensure that taking up this option improves your situation. Debt Consolidation loans can have very high interest rates and you could be paying more back over time with less flexibility than say a credit card option. You need to ask yourself, “What problem am I trying to resolve?” and tackle it from that angle.
If your struggle is not just with juggling repayments but actually making ends meet, then it may be worth looking further for alternatives. Here at Debt Cutter, during the free phone consultation we offer, we talk you through your options based on your specific financial situation.
Is this you? Have you considered a Debt Agreement?
- Unsecured Debts over $8000
- Friendly Credit providers have become Debt Collectors
- Bills mounting – multiple missed repayment dates
- Need to consolidate your repayments to manage the stress
- Not sure if a debt consolidation loan will actually resolve your situation; or
- You have already been knocked back because of your credit rating
If this sounds like you, you are not are not alone, life events and unexpected expenses can cause debt to spiral out of control. However, it is possible to get your debt under control and put a plan in place to become debt free.
What is a Debt Agreement?
A Debt Agreement is a 3-5 year Payment Plan that consolidates all of your current unsecured debt repayments into just ONE REGULAR PAYMENT over the agreement timeframe. A Debt Agreement is only used for unsecured debts. When the debts are rolled into the Debt Agreement the DEBT IS FROZEN so NO FURTHER INTEREST is accrued. This solution is specifically targetted at helping to resolve situations where debts are out of control and unmanageable on current incomes. It is not a loan, and does have consequences for your credit rating.
Click here for more information on Debt Agreements.
Debt Cutter’s Debt Agreement Administration service and support is available to help people who are in financial trouble. You can reclaim your quality of life and get back onto a financially stable path with effective debt management tools that support your journey. Like any financial decision, there are many factors to consider when taking up a Debt Agreement option. Call us now on 1300 887 211 or request a call back from our friendly staff who can help assess your situation and identify if this may be a solution for you.
The Debt Agreement process
The Debt Agreement process requires one regular payment made by you, that is then used, to pay your multiple unsecured debt creditors. It is not a debt consolidation loan.
It is a government legislated option to assist those who are enduring severe financial hardship and do not want to go bankrupt. A Debt Agreement enables you more control over your finances while dealing with your debt than bankruptcy provides.
Further benefits of a Debt Agreement include:
- Support from our consultant who negotiates with your creditors for you;
- Help with payment plans that you can actually afford;
- Helps reduce debt interest on future payments;
- Put an end to late payment fees;
- Save money on monthly fees; and
- Have no further interest on your debts.
A Debt Agreement has qualifying criteria. There are also consequences of proposing and entering into a Debt Agreement that need to be carefully considered. Our consultants are able to talk you through this option and help you to determine if it is a solution that meets your specific situation. Call 1300 887 211 or select the “Get Help Button” at the top of the page and we will call you.