The Debts You Can Say Goodbye to Using a Debt Administrator

Several thousand people each year use a debt agreement to clear their debts and get a fresh start. In a debt agreement, all of your debts are rolled into one regular repayment, the interest is frozen and you have up to 4 years to complete a reduced repayment of the full debt.

This repayment plan was developed by the Federal Government to help people overcome unmanageable debts. It’s important to remember though, that not all debts are eligible to be included.

In short, a debt agreement can help you repay your ‘unsecured debt’. Unsecured debt is debt that is not borrowed against a specific piece of property. In contrast to a home loan or most car loans, where those assets will be seized if you fall behind on the repayments, in the case of an unsecured asset there’s no specific asset that can be taken. For instance, if you fall behind on your credit card, they can’t come and take your fridge – even if you bought it with that credit card because credit card debt is unsecured. If you get sent bankrupt of course, some of your assets can be taken, but this is usually limited to houses, cars or any unusually valuable possessions. Normal household items are usually okay to keep.

In a debt agreement, nearly all unsecured debts can be included. This covers personal loans, credit cards, tax, tuition fees, store credit and more. Some unsecured debts, such as child support costs, fines and certain government debts can’t be included – these debts need to be repaid as normal, separately from the debt agreement.

As most unsecured debts can be included and due to the fact that a poor credit history does not prevent you from being accepted, debt agreements are a becoming an increasingly popular option for people whose debts have started to get on top of them. Before you apply, it’s worthwhile knowing whether there are any defaults on your file, as that will affect whether or not you’ll be eligible for a debt consolidation loan.

A registered Debt Agreement Administrator will also be able to tell you free of charge which of your debts can and can’t be included and what your repayments would be.

Looking to find the best Debt Agreement Administrator for you, then visit www.debt-agreement.net.au to find the best advice on how to get out of debt.