If you are considering applying for a Debt Agreement, there are many important factors you need to consider. Debt Free Australia (DFA) has compiled a list of the main benefits and consequences of entering into a Debt Agreement.
The good:

• The required repayments under a Debt Agreement are based on the amount you can afford –not the amount your creditors want.
• Repayments can be made flexible, allowing you to maximise your available funds and still meet your existing financial commitments (eg., your car leases and mortgages). Your repayments will correspond to your payroll cycle,making it easier to budget.
• Once you lodge a Debt Agreement with AFSA, any pending or current legal action for debt recovery will be suspended. If your creditors accept the proposal, any legal action against you will be cancelled.
• Once your Debt Agreement is accepted, interest on your debts will be frozen, meaning that your repayments will actually reduce the amount of your debt.
• A Debt Agreement lasts for anywhere between 3-5 years, giving you a foreseeable end to your debt repayments.
• You will be able to keep your car, house and other assets – as long as payments for these are maintained.
• There are less restrictions under a Debt Agreement than in a bankruptcy; for instance, you will be free to travel abroad.

The bad:

• There will be a permanent record of your Debt Agreement kept on the National Personal Insolvency Index.
• Your involvement in a Debt Agreement will be recorded on credit reporting databases for a minimum of five years.
• Aside from the mark on your credit file, there will be restrictions placed on your applying for more credit during the time that you are under the Debt Agreement.

If you have weighed up the pros and cons and determined that entering into a Debt Agreement is the best debt solution for you, DFA can help.
At DFA, we have a proven track record in helping Australians successfully settle their unaffordable debt through Debt Agreements.
For more information or free financial advice, call DFA today on 1800 676 598.

In a perfect world, we would go through our entire life completely debt-free, but unfortunately it doesn’t work this way for most of us. The majority of people need a mortgage to pay for their homes and finance for their car repayments, and when emergencies arise (or even if they don’t!) the credit cards are always there to sort things out quickly.
Having debt isn’t bad in itself – it is almost essential to have at least some debt these days, as many contracts for services and utilities require you to have a credit history. The type of debt and amount of debt that you have, however, can have a huge impact on your life. There is a big expectation in society to live luxuriously, which often leads people to living beyond their means; this is one of the main factors driving people deep into credit card debt. Unmanageable debt can affect anyone – regardless of how much or little you think you owe, that feeling of depression and helplessness remains the same.
So to help Australians get on the path to living debt free, Debt Free Australia share some of their useful tips.
1. Take Immediate Action
If you are feeling overwhelmed by your rapidly increasing debt problem, now is the time to seek help. Sleepless nights are not uncommon when you are thinking about how long it will take you to completely pay off your debts, and waiting is only going to make things worse. At Debt Free Australia we are committed to helping people overcome their personal debt problems for good.
A common trend in making monthly debt repayments is to only pay the minimum required amount, which seems quite manageable. If you are only making the minimum payments, though, your debt level is going to keep increasing – by the time you realise you have a debt problem it is often too hard to manage. At Debt Free Australia we recommend drawing up a budget and working out the maximum amount you can afford to put toward your debts. Once you have that amount – stick to it.
Even a small amount over and above your minimum required payments will help to motivate you and make you feel better about your capacity to repay your debts.
2. Find Out Where You Are Sabotaging Your Finances
If you want to repay your debt as quickly as possible, you need to seriously examine what you are spending your funds on. It is important to put as much money towards your debt as possible, but you want to do this without creating a feeling of extreme sacrifice, which will only make it harder to stick to your budget. If you examine your budget and find that you are spending too much on something that could be a lot cheaper, make the necessary changes. Allow a minimal amount for eating out occasionally, or a haircut or clothes shopping. Your budget needs to be comprehensive and realistic, otherwise you run the risk of blowing it out.
The most important step is to start actively trying to rid yourself of debt. Waiting to see what will happen, or simply hoping that things will improve, is only going to lead to more trouble. If you are struggling with debt repayments, you need to seek financial advice. Call us at Debt Free Australia today on 1800 676 598 to get on track and start ridding yourself of personal debt.

Personal Insolvency Agreements are increasingly providing an effective form of debt relief for everyday Australians. They provide hope for the nearly 30,000 individuals across the nation who, according to statistics released by the Australian Financial Security Authority, report being personally insolvent on an annual basis.

Rajesh Narad, a mortgage broker with Loan Market, entered into a Personal Insolvency Agreement in June last year to avoid bankruptcy. Despite owing more than $1.3 million to his creditors, MrNarad was able to negotiate a settlement amount of $100,000 – equating to less than 10 cents in the dollar.

As can be seen by MrNarad’s case, Personal Insolvency Agreements can be a viable option for those who are struggling to repay their debts in full but able to pay a percentage. Many people immediately think of filing for bankruptcy when they find themselves unable to pay back their debts, but there are less serious debt solutions available to them.

A Personal Insolvency Agreement is a legal alternative to bankruptcy that has less harsh consequences for the individual’s financial future and allows for much more flexibility.

It is an arrangement that debtors can negotiate with their creditors when they are no longer able to repay their debts in full. The agreement allows debtors to pay back an agreed amount over a period of time (usually ranging from three to five years). Most Personal Insolvency Agreements allow the debtor to settle their debts for less than what was originally owed, and when the agreement has been completed any remaining balance will be legally written off – as it was in MrNarad’s situation.

However, there are consequences to entering into a Personal Insolvency Agreement. For one, it will be listed on individuals’ credit file for five years. There will also be a permanent record of the debtor going into a Personal Insolvency Agreement on the National Personal Insolvency Index.

“Debtors may have concerns about setting up a Personal Insolvency Agreement, such as the effect on their credit rating and it being on a public record”, says Anthony Warner, Senior Partner of personal insolvency firm Debt Free Australia. “But it is an ideal option for many and offers a brighter future for insolvent Australians.”

Debt Free Australia has a fully licensed Registered Trustee on site who can help debtors to negotiate a Personal Insolvency Agreement with their creditors.

For further information on Personal Insolvency Agreements, or for interview opportunities with Anthony Warner, do not hesitate to contact (02) 8021 3189 or samantha@tmaconsolidated.com.au.

Going bankrupt does not have to be a daunting or complicated task. If you are considering applying for bankruptcy, Debt Free Australia (DFA) can make the process easier for you.

Before you proceed with the paperwork, though, you need to carefully consider whether going bankrupt is the most appropriate solution for you. DFA offers a free online debt assessment for anyone contemplating bankruptcy, to help determine the best debt solution for their personal situation.

If the assessment concludes that going bankrupt is the best option for you, DFA’s team of expert and licensed insolvency specialists can then provide the right advice and information regarding bankruptcy laws and your legal duties.

Going bankrupt will mean you need to fill and lodge bankruptcy forms, including a Statement of Affairs and a Debtor’s Petition. DFA can make this task simpler for you with our form completion and lodgment service.

Call our personal debt advisors today on 1800 676 598 for professional, impartial advice. All calls are confidential and can remain anonymous if you wish.

If you are in debt and have a good credit record, combining all your debts into one single consolidation loan may be the best solution for you.

A consolidation loan is an affordable way for debtors to get their finances back under control in a shorter amount of time. Advantages of taking out a consolidation loan include the following:

• Lower interest rates. Consolidation loans often have lower interest rates than other credit facilities, such as credit cards, meaning you can reduce the amount of your debt a lot quicker.
• Reduced number of payments to manage each month. Combining all of your debts into a consolidation loan means that you only have to make one single repayment, making management of your finances easier and eliminating possible late payment fees.
• Less stress. Having only one loan to manage makes the debt repayment process less chaotic and stressful.
• Full awareness of repayment amounts. You will know the exact amount of money you need to repay each month for the life of the consolidation loan.
• Improved credit rating. Taking out a consolidation loan can improve your credit rating, as you will be less likely to miss payments.

A consolidation loan will only help you, however, if you rid yourself of each credit card that the loan is paying out and maintain all of the loan repayments. It is very easy to be tempted by a credit card with a zero balance, and using the cards again will make your situation doubly worse. If your credit rating has been damaged by the debt you are currently in, you might not be approved for a consolidation loan. In this case, you would need to consider a more formal arrangement to repay your debts affordably, such as a debt agreement or a personal insolvency agreement

If you are considering taking out a consolidation loan to repay your debts, or if you have applied for a consolidation loan and been rejected, call our professional team of debt advisors today on 1800 676 598 for more information and free advice.

If your credit card bill is bloated, your savings are non-existent and you find yourself gasping for air when looking at your debt balances, then it is time to seek help. At Debt Free Australia we care about our clients and hate to see you drowning in personal debt. If you have reached the stage where there is no emerging from the depths of debt, we suggest you contact us immediately.

To help you minimise your debt this financial year, Debt Free Australia share our top tips:

1. Set Financial Goals

ASIC’s senior executive Miles Larbey closed 2014 with an encouraging message to make this year a great year for personal finances. We understand that sometimes setting New Year’s resolutions and financial goals doesn’t always go to plan! However, everyone can benefit from setting financial goals- whether you are in a stable financial situation or genuinely struggling with debt. At Debt Free Australia we encourage the setting of achievable goals to help you get back on track.

2. Cut Personal Debt

The specialists at Debt Free Australia want to help you cut out unnecessary debt. Credit card debts in Australia are often the worst source of personal debt, with some cards having interest rates north of 20 per cent; many personal loans come with rates of more than 10 per cent. This often means that you can’t even pay off one bill before another arrives!Debt Free Australia’s financial specialists will work closely with you to review your household budget, understand your monetary outflows and determine ways to reduce these figures.

3. Mortgage

According to ASIC, Australians are on average more than two years ahead of their mortgage repayments. This means that many Australians are financially able to put their disposable income towards paying off their mortgage faster. If this is you, we encourage you to do so – if you hit a period of financial hardship you may no longer have the financial capacity to meet even the minimum repayments, so pay it off while you can!Whether you are seriously struggling with your personal debt, or simply want to remove the burden of personal debt from your life – you will always benefit by talking to a professional.

Call our toll free hotline on 1800 676 598 and break the shackles of debt forever!

If you have found yourself struggling with an overwhelming pile of debt and are looking for professional debt advice regarding the options available to you, Debt Free Australia (DFA) can help. At DFA, our team of licensed and experienced debt advisors can help identify the solutions most suitable to your unique debt situation.
Our qualified administrators can conduct a free debt assessment of your financial situation to help determine, firstly, exactly where you stand and whether you need professional help. If it is deemed that you would benefit from a formal debt solution, DFA will then give you professional advice on which option is most suitable for you and what it entails.
While filing for bankruptcy may be the only option left for some, others are more suited to entering into Personal Insolvency Agreements or Debt Agreements with their creditors. With DFA, you can rest assured knowing that you are getting impartial and professional advice about your available solutions.
To get free professional debt advice, or to find out more about our services, call DFA today on 1800 676 598.

When struggling with personal debt it is often hard to know where to turn to find help in dealing with your situation. Many of our clients are often confused about the role that debt consultants play, which is why Debt Free Australia is here to set things straight.

At Debt Free Australia, our debt consultants are financial professionals who work with individuals to assess their current debt status and create a solution. The goal of our debt consultants is to assist the client in finding ways to effectively manage their current debt and to minimise the impact of their insolvent status.

Debt consultants are trying to enhance your financial security, so we work closely with each of our clients, showing genuine concern towards each individual’s situation and determining which solution will be most beneficial for them. Our debt consultants employ several strategies in order to help their clients meet realistic financial goals. They work with individuals to help them find ways to better manage their liabilities through realistic and measurable solutions, and help to get their credit card spending under control to ease the stress that the burden of debt inevitably brings.

Debt Free Australia specialises in four key areas of formal debt relief:

• Debt Agreement
• Personal Insolvency Agreement
• Bankruptcy
• Debt Consolidation

At Debt Free Australia, we understand that when dealing with debt problems, there shouldn’t be a ‘one size fits all’ approach. That is why we offer four comprehensive debt solutions to managing your personal debt. Our debt consultants will ensure that the solution is catered to your needs and will have the least possible impact on your financial future.

Don’t wait to get swamped in debt! Call our debt consultants at Debt Free Australia today on 1800 676 598 so we can start managing your debt problems together. Our telephone hotline is available 24 hours a day, 7 days a week, so that our debt consultants are available whenever it best suits you.

At Debt Free Australia, we have many years of experience in assistingindividuals who are facing personal insolvency. We perform financial assessments to determine what options are available and can act as the administrator for any formal debt arrangements that one might choose to enter into. Whilst we always strive to help people to avoid bankruptcy, there are times when it is actually the best option for someone. It is then that we see that most Australians are often mistaken as to what bankruptcy actually involves.Bankruptcy has long been tainted with a negative perception, mostly due to the myriad of myths which surround it. To set things straight once and for all, Debt Free Australia debunk the most common bankruptcy myths.
Myth 1: Everyone Will Know.
The need to declare bankruptcy is becoming more and more common, which means that it is becoming more accepted. Regardless, many people worry that “everyone” is going to know about their bankruptcy. There is actually no reason for anyone to be aware that you are bankrupt, unless you tell them about it or they go out of their way to check the public record, which is not very common due to difficulty and costs. We do recommend,however, that you share the knowledge of your bankruptcy with a family member or friend. It can be an emotionally taxing process, so it helps to have that support.

Myth 2: I’ll Lose Everything I have
This is the most common misconception associated with bankruptcy. The truth is that you will not lose everything you own. Your bankruptcy Trustee is obligated to recover whatever funds they can and put them towards your debts, so if you have a substantial asset that would be worth selling, such as a property with equity in it, then yes, you would stand to lose that. But you are allowed to keep a vehicle up to a certain amount, your household items and personal effects should not be touched, and your superannuation is safe. A one-on-one meeting with a bankruptcy advisor at Debt Free Australia will help you to determine how much your individual bankruptcy case is likely to affect your assets.
Myth 3: My Credit Will Be Terrible Forever
Whilst bankruptcy will stay on your credit file for a period of 7 years, this does not mean that your borrowing ability will be tainted forever. If you rebuild your credit file and use your credit wisely after bankruptcy, you could even purchase a home within a few years.
At Debt Free Australia, we love bringing happiness and financial stability back into the lives of over-indebtedAustralians. Personal insolvency is surprisingly common and you are not alone in having to deal with it.For free and impartial advice on bankruptcy and how it might affect you, contact one of DFA’s bankruptcy advisors today on 1800 676 598.

The number of Australians in financial distress and entering into Debt Agreements is continuing to grow, according to latest figures released by the Australian Financial Security Authority (AFSA).
As per AFSA’s annual report on personal insolvency, there were a total of 29,514 overall personal insolvency cases reported nationwide during the 2013-2014 financial year. The report for the December quarter of 2014 shows that there was a rise of 2.5 per cent for people entering into Debt Agreements, compared to the previous quarter; from 2,589 people to 2,655.
The majority of applicants for personal Debt Agreements were younger Australians who are employed, but living beyond their means. Many have credit card debt and telephone bills that have become unmanageable. Only 7.7 per cent of the reasons listed by people for entering into Debt Agreements were business-related, suggesting that the majority were caused by uncontrolled spending behaviour.
The AFSA figures on the number of Debt Agreements show that Australians are becoming more conservative in addressing their debt problems, with the number of people filing for bankruptcy reaching a record low since the 1995-96 financial year.
Debt Agreements are a wise option if an individual wants to protect their assets. Entering into a Debt Agreement means that you can pay back a percentage of your unsecured debt, whilst keeping enough money in the budget to pay off a secured commitment such as a mortgage.
If you have decided that applying for a Debt Agreement is the best choice for you, Debt Free Australia (DFA) can help. Our qualified insolvency practitioners can assist you in the negotiation and implementation of a Debt Agreement and ensure that it is fulfilled according to legislation.
The CEO of DFA is registered with both AFSA and the Australian Securities and Investments Commission, and all of our staff are qualified to assist with any personal debt problem. For professional debt management help, call us today on 1800 676 598.