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;
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;
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.
Professional with 13 credit cards and 2 personal loans
|Total Credit Card & Personal Loan Debt
|Settlement Amount [following debt negotiations]
Couple with a total of 17 credit cards
|Total Credit Card Debt
|Settlement Amount [following debt negotiations]
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.
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.
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.
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].
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.
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!
If you need any other details or wish to discuss your situation please feel free to contact us any time.
Sam & Matt
Adelaide Mortgage Broker +plus more…