Debt Agreements

I have mentioned Debt Agreements once or twice already.

A Debt Agreement is considered to be an alternative to bankruptcy, but in my view they may just keep you broke.

The way Debt Agreements are intended to work is that you offer to pay back what you can afford but over a number of years, sometimes five years but it could be longer.

Then and only then, once the final payment is made your debts are cancelled.

However if you find down the track that you can no longer afford the repayments then most likely the Debt Agreement will fail. That will just take you back to square one.

Steve and I speak to many people who have gone into a Debt Agreement with good intentions but a few months down the track they can’t afford to continue, so if you are looking into a Debt Agreement at the moment then be fair dinkum about what you say that you can afford to pay.

Remember that Debt Agreements are controlled by bankruptcy law too so they will affect your credit rating for five years the same as bankruptcy.

It might be that the better solution to your debt problems is bankruptcy.

With bankruptcy your problem debts are cancelled immediately from your perspective, not years later when the Debt Agreement has been completed.

You can be in and out of bankruptcy in three years.

With bankruptcy you can just get on with life.

If you are thinking about a Debt Agreement at the moment and you are not sure if it is the right way to go then please give us a call on 1300 794 492 or send us an email to hello@fredappleton.com.au

 

Debt Agreements

I have mentioned Debt Agreements once or twice already.

A Debt Agreement is considered to be an alternative to bankruptcy, but in my view they may just keep you broke.

The way Debt Agreements are intended to work is that you offer to pay back what you can afford but over a number of years, sometimes five years but it could be longer.

Then and only then, once the final payment is made your debts are cancelled.

However if you find down the track that you can no longer afford the repayments then most likely the Debt Agreement will fail. That will just take you back to square one.

Steve and I speak to many people who have gone into a Debt Agreement with good intentions but a few months down the track they can’t afford to continue, so if you are looking into a Debt Agreement at the moment then be fair dinkum about what you say that you can afford to pay.

Remember that Debt Agreements are controlled by bankruptcy law too so they will affect your credit rating for five years the same as bankruptcy.

It might be that the better solution to your debt problems is bankruptcy.

With bankruptcy your problem debts are cancelled immediately from your perspective, not years later when the Debt Agreement has been completed.

You can be in and out of bankruptcy in three years.

With bankruptcy you can just get on with life.

If you are thinking about a Debt Agreement at the moment and you are not sure if it is the right way to go then please give us a call on 1300 794 492 or send us an email to hello@fredappleton.com.au

 

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