What is it?
A debt consolidation loan is a personal loan that could help you consolidate your credit cards, existing loans and other debts into one simple loan. Having one simple payment may make managing your finances alot easier. Potentially avoid paying different amounts at different times though out the month.
Refinancing might let you change your home loan to suit your new circumstances. Could be an effective way to consolidate credit cards, personal loans or other debts to reduce your interest rate and monthly repayments
When you are willing but unable to meet your contractual debt obligations it can be due to factors, unforeseen circumstances, or unexpected events that impacts cash flow, for example:
- unexpected changes in income and/or expenditure;
- changes in employment status (such as losing a job or having your income reduced);
- significant life events (such as a relationship breakdown or a death in the family);
- injury or illness; and
- emergency event or natural disaster to name a few.
Sound familiar? Give us a call and lets have a chat about the process, benefits and limitations of this option.
Free Call: 1800 332 877
Part 9 Debt Agreements
If you are eligible to apply for a Debt Agreement ABC Debt Solutions can help you with your application.
Upon acceptance a debt agreement may provide:
- a freeze to unsecure debt interest
- one manageable payment
- a stop to unsecure creditor phone calls
- opportunity to become debt free in 3 to 5 years
A debt agreement is a formal option to help you deal with unmanageable debt. A debt agreement is a binding agreement between you and your creditors where creditors agree to accept a sum of money that you can afford. Your repayments are based on your capacity to pay having regard to your income and all of your household expenses.
Personal Insolvency Agreements (PIA)
PIAs can be a flexible way for you to come to an agreement with your creditors to settle debts without becoming bankrupt.
A PIA is a legally binding arrangement between you and your creditors whereby you offer to pay them in full or in part by instalments or a lump sum. Your offer must be accepted by a special resolution of your creditors. Unlike a debt agreement, there are no debt, asset or income limits to be eligible to propose a PIA.
Acceptance requires a "yes" vote from a majority of creditors who represent at least 75% of the dollar value of the voting creditor’s debts (referred to as a "special resolution").
Lodge a declaration of intention to present a debtor’s petition
This stops your creditors, the bailiff or sheriff taking action to recover unsecured debts for a period of 21 days. You could use that time to speak to your creditors, consider other options or seek advice.
If you are not yet bankrupt we recommend that you learn more about all of the options available to people who are having trouble paying their debts.
If you are unable to pay your debts and cannot come to suitable repayment arrangements with your creditors, you may voluntarily lodge a petition to become bankrupt (called a debtor’s petition) or a creditor may take action to have you declared bankrupt by order of the Court (called a sequestration order). We strongly recommend that you read the Personal insolvency information booklet before you complete any of the forms for debtors. The booklet provides important information on some of the consequences of presenting these forms.
Call us for more information on 1800 332 877