Debt reduction services usually take the form of an informal or formal arrangement with your creditors. To understand the differences between informal or formal arrangements with creditors click here or read below.
Informal Arrangements
If you have multiple creditors and are struggling to keep up with all of the repayments you may wish to consider an informal arrangement with your creditors. Click here to learn how you can negotiate an informal arrangement with your creditors.
Formal Arrangements
If you have been struggling with unsecured debt for some time then a formal arrangement with your creditors may be more appropriate.
There are different types of formal arrangements and the appropriate one for you will depend on your circumstances. The relevant factors which need to be considered are:
- Your unsecured debt levels;
- Your income after tax; and
- Your assets.
If you elect for a formal arrangement, we strongly advise that you carefully select the service provider. Here at Debt Free, we are:
- Fully licensed to handle all types of formal creditor arrangements including Debt Agreements, Personal Insolvency Agreements and Bankruptcy.
- Fully insured (we have professional indemnity whereas many other debt agencies are not insured at all as it is not a legal requirement).
- Privately owned and operated by a Chartered Accountant who is also a member of the peak professional insolvency body in Australia Insolvency Practitioners’ Association of Australia.
If you need advice on debt reduction services call us today on 1800 676 598.