Slice up your Credit Card debt…

March 10, 2015

How to reduce your credit card debt by 50% or more in only 3 weeks!

Struggling to pay off your credit card balance each month?

Can’t make the minimum monthly payment?

Easy credit, aggressive marketing and an insatiable appetite for consumption has led many Australians to spend more than they earn.

Here are some facts;

The average amount of credit card debt per card holder is $4,200.
The average Australian had a credit limit of $9,329 on their credit card during 2013
Over half a million Australians carry more than $5,000 in credit card debt.
The total balance held on all credit cards and charge cards as of October 2014 is $49.6 billion

How can Debt Negotiation help you?

A Debt Negotiator can negotiate a settlement with your creditors creating a greatly reduced pay-out figure for the unsecured debts you owe and in turn release you from the ongoing pressure and stress associated with your outstanding debts.
In most cases a Debt Negotiator can negotiate your personal debts down to as low as 10-50% of your original balance.

For example, a credit card debt of $10,000 could be reduced to as little as $3,000 after just a few weeks of negotiations. That’s a settlement of 30 cents in the dollar. In fact, in some cases debts can be completely written off – that’s 100% of your debt wiped out!

Here are some of the debts that can be negotiated;

Credit Cards
Tax Debts
Personal Loans
Trade Debts
Old Secured Debts
School Debts

We’ve been working with a trusted Debt Negotiation company that has more than 20 years experience in winning negotiations for consumer and commercial clients.

To date they have assisted thousands of families in reducing their debt and stress levels! There success rate is second to none and they have already helped a number of our clients.

Here’s some real-life Adelaide examples;

Professional with 13 credit cards and 2 personal loans

Total Credit Card & Personal Loan Debt	$350,000
Settlement Amount [following debt negotiations]	$169,000
Total Savings	$181,000

Couple with a total of 17 credit cards

Total Credit Card Debt	$226,000
Settlement Amount [following debt negotiations]	$72,500
Total Savings	$153,500

How does it work?

Debt Negotiation is a relatively new offering within the Australia. While the methodology and strategies of negotiation can be complex, particularly when dealing with big banks, the concept is very simple – as long as you can show some level of hardship a Debt Negotiator will be able to negotiate a favourable settlement with your creditors.

Step 1 – Inform you of all the options available to you to resolve your situation. Give guidance on what your rights are with your creditors and what they can and can’t do.
Step 2 – Ensure that your creditors stop all harassing phone calls to you. No further contact should be made to you by your creditors while Debt Negotiators are involved.
Step 3 – Work at stopping any legal action taken against you. Debt Negotiators will work with your creditors and ensure they place all action on hold while negotiating a settlement for you.
Step 4 – Negotiate your pay-out figures down. For example, if you owed a total of $50,000 on credit cards it could be reduced to ~$20,000 [or lower] within 3 weeks of negotiations.
Step 5 – You pay your creditors the new reduced pay-out figures and your debts are considered finalised [settled] by your creditors. You can now enjoy a new debt free life!

>> To request a confidential and obligation-free debt assessment click here

Is Debt Negotiation my only option?

Option One: Do Nothing

The banks will normally contact you directly if your payments are overdue – under the NCCP laws you can apply for hardship arrangements which may include payment holidays, interest free periods, temporary reduction in your payments, loan rewrites etc.

The banks are required to consider you under hardship circumstances however they are not obliged to give it.

More often than not people experience the full force of the banks’ collection activities, which include up to 3 phone calls a week, collection letters, credit defaults and possible legal action!

Eventually the debt can be sold to a professional debt recovery agency who will take collections to a whole new level, at which time you will not be protected under the NCCP laws.

Option Two: Financial Counsellor

The role of a Financial Counsellor is simply to mediate between yourself and your bank with the aim to set up an ongoing payment arrangement under hardship circumstances.

People use the services of a Financial Counsellor as they are much better informed of your rights under the NCCP laws.

A Financial Counsellor may also suggest other options available to you including Bankruptcy & Part IX Debt Agreements.

Option Three: Part IX Debt Agreement

Part IX Debt agreement is part of the Bankruptcy Act. If you apply for a part IX you will technically be considered Bankrupt and it will be listed on your personal Credit Report.

However there are some major differences; a Part IX insolvency allows you to pay your debts off interest free at a reduced amount over a period of 3 to 5 years to the Bankruptcy estate.

For example, if you owed $50,000 on credit cards, a successful Part IX could reduce this to $45,000 and you would need to pay this amount off over 5 years interest free [not including Part IX costs].

Option Four: Bankruptcy

If you are unable to come to a suitable repayment arrangement with your creditors, you may voluntarily apply for bankruptcy.

Bankruptcy creates and an estate in which your assets are liquidated and the funds distributed towards your creditors.

The benefit is that you will be relieved by the growing pressure of being in debt. However Bankruptcy could stop you from travelling overseas, will certainly affect your Credit Report [and thus your ability to get future loans] and the Bankruptcy Estate could Garnish your income.

Option Five: Debt Settlement via a Debt Negotiator

Debt negotiation is an honest and effective alternative to the above options.

Using a Debt Negotiator can be the most assertive way to handle your debts. They work for the consumer, you, not the creditor and help you to finalise your debts in a much shorter time frame compared with the other options.

Your accounts don’t even need to be in arrears to benefit – as long as the Debt Negotiator can establish some level of financial difficulty they will be able to help you.

Best of all, if you are able to keep all of your accounts under 60 days in arrears you will not receive any defaults by using a Debt Negotiator!