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.

Australian households have come out on top as the most indebted in the world, according to research by Barclays, making them vulnerable in the event of a global crisis.
The Sydney Morning Herald reports Barclays’ Australian chief economist as saying that the private sector debt-to-income gearing is at an all-time high of 206 per cent, up from a pre-Global Financial Crisis (GFC) figure of 191 per cent. Australia is in the top 25 per cent of the world when it comes to leverage.
Australia is ranked first when it comes to accumulating household debt, including mortgages, credit cards, overdrafts and personal loans. While credit piles up for Australians, the rest of the world is paying it down, according to the SMH’s reporting.
With debt continuing to pile up for Australian households, the demand for financial assistance is starting to rise. This is where Debt Free Australia steps in. Debt Free Australia has helped thousands of Australians with their debt problems by providing free advice and financial solutions that are tailored to their unique situation.
Our personal debt advisers are trained in all aspects of personal insolvency, and our CEO is licensed and qualified to offer you whichever formal debt solution best suits your circumstance. So when you call us, you can rest assured that the advice given is completely impartial, and not geared toward selling you an unsuitable product.
Call us today on 1800 462 767 for free, confidential advice.

Debt Free Australia has long taught their loyal readers and clients that one of the main consequences of entering into a Debt Agreement is that your name would be permanently listed on the National Personal Insolvency Index (NPII). Although this is not often looked at, this meant that a public record would always document your period of personal insolvency and include some personal information about you.
But a new move by the Australian Financial Security Authority (AFSA) means the way your Debt Agreement information is publicised is changing. In March 2014, amendments were made to the Privacy Act 1988 that saw time limits imposed on the retention of personal insolvency information by credit reporting bodies. Similarly, new amendments to the Bankruptcy Regulations 1996are currently being prepared which will enact similar time limits on the public listing of Debt Agreements on the NPII.
Following the implementation of these changes, information relating to Debt Agreements and Debt Agreement Proposals will be removed from the NPII by the Official Receiver within one month after the later of two given days (as follows):

1. If a Debt Agreement ends under section 185N of the Act, the two days are:
   • 5 years after the day on which the Debt Agreement was made;
   • The day on which the Debt Agreement ends.
2. If a Debt Agreement is terminated under section 185P, 185Q, 185QA or 185R of the Act:
   • 5 years after the day on which the Debt Agreement was made;
   • 2 years after the day on which the Debt Agreement is terminated.
3. If an order is made under section 185U of the Act declaring the entireDebt Agreement void:
   • 5 years after the day on which the Debt Agreement was made;
   • 2 years after the day on which the order is made.

It is important to note that whilst this information will be removed from the NPII, it will continue to be retained on AFSA’s database. However, it will no longer be publicly searchable.
For more information on the removal of a Debt Agreement and related information from the NPII, or to find out how this affects your own personal insolvency record, give us a call today on 1800 462 767 , or email us at info@debtfreeaustralia.com.au

“Debt? But I’m still so young! What do I need to think about debt for?”

This response from young Australians is all too common in 2015. What they aren’t aware of, however, is the advantage presented to individuals who did think about debt and developed smart and savvy financial habits from a young age, setting themselves up for a financially secure future.

If you didn’t start saving in your twenties, it isn’t too late. If you are in your twenties, it’s a good idea to start now! Debt Free Australia have identified six financial habits that all Australians should adopt now in order to get their finances in order and be prepared for the future.

1. Save For The Future
    
   Saving money for your future, your retirement or for your life in general, doesn’t mean you have to deprive yourself of all things fun. It simply means making smarter decisions when it comes to your spending.For the 20-something year olds, it’s about thinking carefully about whether or not you really need that clothing item, or if a night in with friends will bring the same enjoyment as a pricey night on the town. It’s about working hard now when you have more time to spare and banking your savings to receive greater returns. For the more life experienced, saving is about cost allocation; setting budgets and sticking to them.

   Developing effective spending habits from a young age is an investment in a brighter and more stable financial future.

2. Live Debt Free
    
   Living debt free is one of the smartest financial decisions you can make, and staying debt free is the perfect way to increase your chances of a steady financial future.

   When it comes to Australian youth, the cost of tertiary education is likely to be their first encounter with debt. Whilst right now it may be easier to take advantage of financial assistance programs such as HECS, tuition costs will eventually need to be repaid.

   In order to give yourself the best chances of minimising or preventing debt altogether, it is wise to consider paying small amounts of your student debt whilst you study, reducing the amount that will come out of your income in the future.

3. Set Financial Goals
    
   Your twenties and thirties are the best times to set financial goals. Many won’t have a myriad of bills or financial demands, thereby making it easier to save money.

   Save for a car, figuring out how much you can afford to pay as a loan and how much you will need for costsafter you make the purchase. Or look to the future and start your emergency fund early – you have nothing to lose from this, but so much to gain.

4. Surround Yourself With a Motivating Support Group
    
   At twenty or thirty, many Australians are still living at home or moving out with friends or partners. For those still at home, it is worthwhile discussing your finances with your parents. Having gone through their own financial ups and downs, your parents can be great motivators in ensuring you are staying on track to being financially responsible.

   If you’re married or in a committed relationship, you and your partner need to be making financial decisions together, discussing big purchases and being on the same page about long-term goals.

5. Act For Yourself
    
   Family and friends can help you with your motivation, but they cannot pay your bills for you. If you have often turned to your parents in times of financial turmoil, now is the time to stop. By adopting a financially responsible mindset, getting a good job and learning to pay for things yourself, you set yourself on the path to a level of independence that will help you in the long run.

Current and former university students owe the Commonwealth a record amount of money, with a new report estimating that more than $6 billion in student debts is never expected to be repaid.

A study conducted by the Grattan Institute has found that university students have accumulated Higher Education Loan Program debts in the amount of $26.3 billion; this figure represents an almost $10 billion increase since 2007.

“These student debt figures are problematic and present a cycle of despair”, says Anthony Warner, Founder and CEO of insolvency firm Debt Free Australia. “Many students will spend a fair majority of their working lives paying off the student debt they accumulated in order to gain these careers.”

For current students, Debt Free Australia advises looking into payment methods that allow one to pay parts of their student debt as they fall due. Under the HECS-HELP scheme, students will actually pay less for their studies if they pay their whole or partial student debt amount upfront. “Not only will this reduce the amount of interest one will accumulate, but it will also teach Australian youth how to manage their money from early on”, says Warner.

For those who have already graduated and begun work, the burden of student debts may already be taking their toll on their finances as repayments are taken directly from one’s wages once they begin to earn above the minimum threshold for compulsory repayment.

“More often than not, people are finding themselves in dire financial situations as a result of their student debt”, Warner states. “Rather than moving overseas in order to avoid repayments, as many continue to do, they should seek professional financial assistance and rectify the situation.”

Debt Free Australia recommends that Australians struggling with the effects of student debt consider the ways in which a Debt Agreement, Personal Insolvency Agreement and other debt solutions may assist their financial situations. It is because of their total focus on their clients’ best interests that Debt Free Australia offer the lowest price (guaranteed) for their services, and operate a toll-free advice line available at all hours of the week.

For more information on Debt Free Australia and how they can assist current or former students struggling with their student debts, contact 1800 462 767.

If you are under the constant stress of not being able to repay your debts when they fall due, a Debt Agreement may be the best option for you. A Debt Agreement is a formal arrangement whereby you –the debtor – can come to a mutual agreement with your unsecured creditors as to how your debts will be repaid. Because this is a legally binding agreement, creditors cannot then change their minds further down the track.

Proposing a Debt Agreement is technically referred to as an act of bankruptcy, however it is a very different arrangement to bankruptcy and offers more flexibility with fewer negative consequences. A Debt Agreement gives you ample time to settle your unsecured debts whilst also giving you a foreseeable end to being in debt.

Debt Agreements are a good option to relieve yourself of all the stress that accompanies debt repayments. Those who have previously entered into a Debt Agreement would likely tell you that the protection from harassment by their creditors was just as relieving as the settlement of their debts. In saying this, a Debt Agreement can have significant consequences for you, both financially and personally. It is highly encouraged that you consult with an experienced professional to ensure that you are fully informed and confident in the choice you have made.

Debt Free Australia (DFA) can provide you with all the professional help and advice that you need. DFA’s expert consultants will assess your personal debt situation, advise you on all of your debt solution options and assist you in determining the most appropriate course of action, whether that be a Debt Agreement or an alternative arrangement.

To receive a free consultation with a DFA insolvency specialist, contact us on 1800 462 767 or fill out an online enquiry form here.

If you are struggling to repay your debts on time and are considering applying for bankruptcy, it is important that you weigh up all of the options available to you before you proceed. Declaring bankruptcy can be a life changing decision and should be used as your last resort.

Bankruptcy carries serious consequences for your financial future, including difficulty in obtaining credit for a considerable amount of time. You could also lose significant assets such as your home and, depending on your industry, your employment could be affected.

Declaring bankruptcy was the only legal solution to debt in the past, but now Debt Agreements – a relatively recent initiative by the Australian Government –offer a positive legal alternative for Australians who want to avoid the harsh consequences of filing for bankruptcy. A Debt Agreement allows one to pay their creditors an agreed amount – usually a percentage of the current amount owing – over a set period of time. Once the agreement has been completed, any remaining balance will be legally written off.

Debt Agreements have helped thousands of Australians to regain control of their finances. According to the Australian Financial Security Authority (AFSA), Debt Agreements are increasing in popularity as a solution for unmanageable debt. As a result of this popularity, the number of Australians who filed for bankruptcy in the December quarter of last year decreased – and it is expected to continue decreasing over the coming years.

At Debt Free Australia (DFA), our Registered Debt Agreement Administrator can supervise your entire Debt Agreement from start to finish. Our CEO is registered with both AFSA and the Australian Securities and Investments Commission, which means that we are fully licensed and qualified to handle every single aspect of the process, and will not pass your case around from one company to another.