How is Bankruptcy Different to the alternatives, such as such a Personal Insolvency Agreement?

The thought of being unable to pay your debts in full can be extremely stressful. For this reason, many people find it hard to see the difference between Bankruptcy and a Personal Insolvency Agreement.

Bankruptcy
Bankruptcy is an appropriate solution for those who are on a low to medium income and cannot repay their debts. This option gives people a fresh start. However, bankruptcy does come with consequences, some of which could last longer than the 3 year bankruptcy term. For example you could lose your assets and will have international overseas travel restrictions placed on you, among others.

If you are not eligible for an alternative to bankruptcy and you wish to file for bankruptcy, we see it as our role to firstly educate you about bankruptcy. Bankruptcy laws are very complicated and each case may have its own set of unique issues. We will go through the bankruptcy very thoroughly with you.

Bankruptcy Alternatives
Alternatives to bankruptcy include, a Personal Insolvency Agreement or a Debt Agreement. It allows you to pay back a percentage of your unsecured debts (based on your income and expenses). As such, it also does not come with the harsh consequences of bankruptcy. For example, your ability to travel overseas is unrestricted and your assets will be protected as long as you continue to pay the agreed amount into your personal insolvency agreement.

If you are not eligible for an alternative to bankruptcy and you wish to file for bankruptcy, we see it as our role to firstly educate you about bankruptcy. Bankruptcy laws are very complicated and each case may have its own set of unique issues. We will go through the bankruptcy very thoroughly with you.

To find out whether Bankruptcy or a Personal Insolvency Agreement is the best solution for you, speak to one of our experts at Debt Free Australia. 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.

What You Should Know About ‘Buy Now, Pay Later’ Services

In an increasingly digitised world, shopping has become much more convenient with the introduction of ‘Buy Now, Pay Later’ services such as AfterPay, zipPay and OxiPay. Buy now pay later services are typically offered by online stores as a payment option to buy a product immediately, but delay your actual payment. It is then paid off in instalments over a certain period of time.

However, many people fall into the trap of overcommitting financially and buying items that are much more expensive than they’d usually purchase. With the holiday season over, you should review your finances to see what shape you are in. If you are concerned about the level of debt, Debt Free Australia offers a free debt assessment.

You still have to pay for your purchase
Buy now pay later is a behavioral technique that can trick you into believing that you are paying less than the actual amount for your purchase. Psychologically, paying smaller amounts can make you believe that the item is actually cheaper than it is. As such, consumers may buy and spend more than they normally would, and falling into the trap of overcommitting financially and finding themselves in debt.

Interest-free doesn’t mean ‘free of fees’
Despite often being advertised as ‘interest free’, if you don’t make your repayments on time, the fees can accumulate to large sums. There are typically monthly account-keeping fees charged so that you can use this service, and then payment processing fees that may occur for each transaction, on top of your set repayment. Furthermore, if you miss a payment, you can be charged late fees. It all adds up incrementally and can become very overwhelming.

If you would like to learn more about your options to deal with unmanageable debt, contact our friendly and professional debt advisors at Debt Free Australia for a FREE debt assessment. Call us on our 24/7 debt advice line on 1800 676 598.