What Are My Personal Debt Solutions?
If you find that your debts are piling up and you are starting to lose sleep over your financial affairs, then it is time to start exploring personal debt solutions.
There is a range of debt options that you may consider, and DFA offers every single one of them.
So what are my personal debt solutions?
A Debt Agreement is a formal arrangement that is established between you and your creditors. It is an agreement in which you propose to pay a certain amount in instalments. It usually lasts between 3 to 5 years.
For a Debt Agreement to be successful in its proposition and execution, you need to nominate an amount that you can comfortably pay over the duration of the agreement and that creditors also agree to. One of the major advantages of a Debt Agreement is that you usually pay less than what you owe.
Personal Insolvency Agreement
A Personal Insolvency Agreement is very similar to a Debt Agreement in which you pay a stipulated amount to creditors over a duration of typically 3 to 5 years.
While there are a few differences, one of the main ones is the thresholds you need to meet or fall under to be eligible for a Debt Agreement or Personal Insolvency Agreement.
Bankruptcy has more severe consequences than other debt solutions and so is usually considered a last resort for those who are looking for personal debt solutions.
The Bankruptcy period lasts for 3 years and 1 day from when your State of Affairs is lodged and accepted by the Australian Financial Security Authority (AFSA).
It usually has more of an impact on your life compared to a Debt Agreement or Personal Insolvency Agreement. For example, with Bankruptcy, you will need to obtain permission from you Trustee if you wish to travel overseas. In some cases, your Trustee may ask you to surrender your passport. With the agreements, you are free to travel as you wish.
If you are exploring your personal debt solutions and would like to speak to a professional to learn more about them, then please contact DFA. We offer a FREE initial consultation so that you can get unbiased, expert advice on which one is right for you. Our toll-free hotline operates 24/7 so you can call us at your own convenience on 1800 676 598.