No one likes having debt. It’s as simple as that. But for many Australians, this is the unfortunate reality.
They wake up – often after very minimal sleep – to the sound of their phone ringing. After anxiously picking up the receiver, a loud, angry voice fills their ears. Their chest immediately tightens up, their heartbeat quickens and their brow furrows as they stammer a quick response, drop the receiver and fall back into hiding.
Let me tell you, there’s hope. There’s always hope!
Many individuals in this undesirable situation immediately look to declare bankruptcy, an option perceived by many as a quick and easy ‘way out’. Coming with many serious consequences, however, bankruptcy is not a path that should taken without a full understanding of, or consideration for, the other legal alternatives available.
Your first option is a Debt Agreement. Put simply, this option has the potential to free you of unsecured debt within 3-5 years without having to declare bankruptcy. It gives you the ability to negotiate your debts with your creditors and come to an arrangement whereby you will pay them a settlement amount that is free of additional interest and charges.
A Personal Insolvency Agreement is essentially the same, with the main points of difference being your eligibility to enter into one of these two agreements (which is based on your income, debt, and asset levels) and the logistics of how it is set up and administered. Both of these debt solutions offer a legal alternative to bankruptcy, and allow you to freeze your interest and attempt to rectify your financial situation without placing the mark of bankruptcy on your credit file.
But in order to completely release the pressure of unmanageable debt, you must first relinquish the financial reins to a trusted and licensed professional which is known in the professional circles as a trustee in bankruptcy
So say goodbye to debt and hello to Debt Free Australia.
We’re available 24 hours a day, 7 days a week – so the next time insomnia strikes, pick up the phone and call 1800 462 767, and let DFA help you take the first step towards your new debt-free life.

Unfortunately for many, debt is a reality in most modern households. Many Australians are struggling with their personal debt and are unable to meet their debt repayments to creditors. The good news is that there is help available. Here at Debt Free Australia we provide simple and effect solutions to Australians who are struggling with debt. Here are some quick tips on how to get help with debt:

Assess your financial your situation & establish a plan

Before you can take any major steps towards implementing a debt repayment program, it is important to first analyse your full situation. To do this you need to firstly prepare a household budget. Then you need to work out where you are spending your money and if you can trim back any unnecessary expenditure. Remember when you are in debt you should only be spending money on essential items. You should wait and reward yourself with unessential items until after you have repaid your debt.
If you have worked out a good budget you should have some money left over each pay day to repay debt. Now you will be able to work out which debts you will repay first. If you have debts with a high interest rate then it is best to repay them first. If all of your debts attract a similar rate of interest then it is best to pay them equally. That way all creditors are being treated equally.

Review your plan each month

It is important that you review your progress every month to see if you are achieving your goals. It may be necessary to change your original debt repayment plan. This may be the case if you didn’t allow yourself enough money to buy essential items each week. Whilst repaying debt is important your health is more important, so always leave yourself enough money to buy essential items like food and medical items.

Achieve your debt goals

If you follow this advice you should achieve your goals and free yourself from debt. Every situation is different so we can’t give you a time frame here in which you will become debt free. If you would like us to do a free debt assessment call us on 1800 462 767. Once we do a free debt assessment we will be able to tell you how long it will take to become debt free.

Consider Professional Debt Help

If your debt repayment plan didn’t achieve your goals, then it may be necessary to get professional debt. Here at Debt Free Australia we have been helping Australians get out of debt for years. We have a proven track record in debt management solutions to help struggling Australians. If you need professional debt help call us today on 1800 462 767, or complete our on-line debt assessment.

Consolidating or refinancing debt may seem like a simple way out of overwhelming debt, and for some people it can be a great help. However, there are several things you need to consider before jumping into either of these options.
What are they?
Refinancing involves cancelling your current loan agreement, and entering into a new loan agreement with your current lender or another lender. Debt consolidation is the process of taking out a new loan to pay off all your existing loans, effectively leaving you with just a single, larger loan to repay.
What are the benefits?
Most people usually refinance or consolidate debt in an attempt to make their loan repayments more affordable in the short term. It is also easier to manage a single payment to one lender, than keep track of several payments with different conditions and payment dates. Consolidating loans can also often reduce overall interest costs.
What are the disadvantages?
There are usually a number of fees that will need to be paid as you refinance or consolidate your debt. Exit fees from existing loans and set up fees for new ones can add up. You will also need to be careful that the interest rate on your new loan is actually lower than what you are currently paying on the debts you are consolidating. If you end up paying higher interest, you will be worse off.
Overall, consolidating or refinancing loans can work for some people if they are able to meet their repayments and reduce fees and interest. For others, it is just a short-term fix that can put them even deeper into debt.
If you need advice on refinancing your debts, call your current lender first. If your refinance application is refused, then give us a call on 1800 462 767 and we can discuss your alternatives.

If you have become bankrupt or contemplating bankruptcy the family home may become seriously affected if careful planning isn’t done.
What Happens in Bankruptcy?
The bankrupt’s interest in the property vests with the Trustee in Bankruptcy by operation of the Bankruptcy Act. What this means is that the bankrupt can no longer deal with the property in any way and the Trustee in Bankruptcy has full control over the property. Therefore if the property is 50% owned by the bankrupt, then that 50% interest vests in the Trustee in Bankruptcy and it is the role of the Trustee in Bankruptcy to realise that 50% interest.
Who Can the Trustee in Bankruptcy Sell the Interest to?
If the property is jointly owned (i.e. the bankrupt owns 50% and the non-bankrupt spouse owns the other 50% interest), then the Trustee in Bankruptcy can offer the bankrupt’s 50% interest to the non-bankrupt’s spouse. The Trustee in Bankruptcy will typically obtain a valuation for the property to determine the value of the interest in the property.
It is common place for a Trustee in Bankruptcy to sell the bankrupt’s interest in the property to the non-bankrupt spouse. The advantages of this approach are as follows:

• It avoids the unnecessary stress of a forced sale of the matrimonial home in bankruptcy; and
• The bankrupt estate will usually receive a higher return if the usual selling costs can be avoided (i.e. agent’s fees).

If the non-bankrupt spouse cannot reach agreement with the Trustee in Bankruptcy to acquire the equity in the property, the Trustee in Bankruptcy may elect to take the following steps:

• Apply to the court for a Trustee for sale to be appointed under the Conveyancing Act to sell the house; or
• Issue a notice under Section 129AA of the Bankruptcy Act and take formal steps to realize the equity in the property at some later stage.

What to do Next?
If you or your spouse are contemplating bankruptcy and jointly own a matrimonial home, then call us today on 1800 462 767 to discuss your options. Bankruptcy is a very specialised area and you should only speak to a Registered Trustee in Bankruptcy who can help put in sale a fully legal sale which may save your house from a forced sale.
All calls are free, entirely confidential and if required, anonymous.