While you may not be the only Australian struggling with personal debt issues, every person’s situation is different and so it is important to find the debt solution that is right for your individual circumstance.
However, finding the best option is easier said than done. There are many personal debt solutions available that can make this process very confusing and frustrating. This is why it is crucial that you enlist the help of an experienced and knowledgeable debt administrator who can assist you in determining the best option.
How to choose the best debt solution for your situation
There are many factors that you need to consider when choosing a debt solution.
You need to take into account:
1. How long the implications will last.
Every solution will last for a certain amount of time. For example, if you file for bankruptcy, you will be considered bankrupt for 3 years and 1 day. The time for a Debt Agreement can be between 3 to 5 years.
2. How it will affect your credit rating.
Your credit rating will be affected once you enter most debt solutions. However, each solution will have different effects on your credit file. Those who enter into a Debt Agreement or a Personal Insolvency Agreement will have a default placed on their credit file for a minimum of 5 years. The default for Bankruptcy is also 5 years.
3. Will your travelling be restricted?
There are certain debt solutions which will restrict your ability to freely travel, while there are others that won’t. Filing for bankruptcy will limit your ability to travel overseas without the prior written permission from your Trustee in Bankruptcy. With a Debt Agreement (for example) no written permission is required.
4. How it will affect your employment.
In some cases, some debt solutions will affect your current employment or ability to apply for other jobs. For example, if you have filed for bankruptcy, you will not be eligible to be a Gaming room employee, Justice of the Peace, Police Officer and more. This is why it is vital that you really research the full implications of each solution to lessen the effect on your future.
5. Which of your assets will be protected?
Depending on which debt solution you choose, some of your assets may be protected while some may not be. If you file for bankruptcy, the Bankruptcy Act allows you to keep certain items such as most ordinary household goods.
At Debt Free Australia, we understand that the process of finding the right solution is difficult. This is why it is important to enlist the assistance of highly trained consultants who can take you through all your options and help you determine what is the best option for you. The consultants at Debt Free Australia are experienced, professional and passionate about helping Australians recover from debt troubles to lead a better financial afterlife.
To find out more about how we can help you, call us today on our toll-free advice line on 1800 676 598.