Category Archives: Financial Services

Avoid Bankruptcy with Part 9 Debt Agreements

Entering into a formal debt agreement can be one of the most effective ways for most people to deal with debt that is unmanageable. However, before entering into these kinds of agreements, it is very important to understand how they work so that you can manage your expectations and also ensure that it goes as planned. Part 9 Debt Agreements or the Part IX Debt agreement is generally a binding contract between the debtor and the creditors.

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The Part 9 Debt Agreements allows the debtors to offer creditors a reduced settlement proposal which will be based on the payments that they are able to afford. There is a very strict criteria for qualification that is generally set for the Part 9 Debt agreement and it only applies for debt that is unsecured. These include debts such as credit card bills, utilities and telephone bills. Check out Debt Mediators.

If the Debt Agreement proposal is accepted by the creditors, then your debts ill no longer incur any additional interest. The new repayments regime will be set over a certain period of time which can be up to 5 years. During the duration of the Part 9 Debt Agreements between you and your creditors you will be protected from some of the more aggressive creditors. You will not have to grapple with debt collectors or law suits by creditors that are party to the debt agreement.

Entering into Part 9 Debt Agreements will, however, come with certain consequences for you. Proposing the debt agreements is almost like filing for bankruptcy. If they reject your agreement proposal, they can subsequently use the information that you provide to force you into declaring bankruptcy. Because these formal agreements are recorded by the government, there will be a permanent record of your name in the Government’s National Personal Insolvency Index. This will also be listed on your credit file for a duration of 5 years. These are the same consequences that generally occur when you declare bankruptcy and may sometimes hinder your access to credit or mortgages. When entering into these formal agreements under Part 9, you therefore need to fully understand the consequences and also appoint an administrator that can competently assist you to go through this process.

Debt agreements offer a great alternative when you are faced with a financial crisis and your consumer debt is spiraling out of control. Rather than tarnish your negative credit reporting file, Part 9 Agreements offer you a perfect solution that eliminates much of the headache that comes with debt that is unmanageable. Some of the benefits include the following:

·         Have a convenient and single payment rather than multiple payments

·         Stop interest on your debt from accruing

·         Stop legal actions and creditor harassments

·         Lessen the pressure of dealing with creditors by appointing an administrator to deal with them on your behalf.

·         Eliminate your unsecured loan obligations without having to file for bankruptcy

·         Limit the extent of damage done to your negative credit reporting file.

If you qualify or wish to know whether you qualify for Part 9, it is advisable to appoint a debt specialist and Part 9 administrator to assist you with the process so that you can eliminate the headache of managing debt. Read more at http://www.debtmediators.com.au/bad-credit-loans/.

Best Strategies for Consolidating Debt

Are you in need of debt help and intervention? Do you find it difficult to make ends meet as you have to pay off multiple loans? Are you considering consolidating your loans to make repayment easier? When you get into too much debt, questions pile up as you try to make sense of the situation and iron out your finances.

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Temporary financial hardship can be overcome if you develop enough discipline to stick to your debt management and reduction plan. Whether or not you work with a debt relief service or not, debt consolidation is a good option. There are other alternatives to debt consolidation and this should be used only as a last resort. However, if you use a few basic and proven strategies, you can reap a lot of benefits from loan consolidation:

Consolidating Credit Cards

This is a strategy that can dramatically improve your cash flow. By rolling your numerous credit cards into one, you can simplify the monthly payment process since you will be paying only one instead of five or more. A good strategy is also to roll the new account into a lower interest rate so you will not be adding more to your debt problem by paying for steep interest rates. When you have a super low-interest rate on your credit card, you can save up some extra cash to pay off your other debts.

Don’t Shuffle Your Money

Finance experts believe that debt consolidation can be a powerful method to becoming debt-free. Avoid playing a shell game with your debts. If you do not commit to making a dent in your payment for the new loan, then the same problem exists but you just moved it into a new form. It might be a good time to start tracking your finances if you haven’t already. This will make it easier to identify the money that is coming in and how the money is coming out.

Maximize Payment

When you already have your debt consolidated into a single loan, pay as much as you can and when you can. When you have extra disposable income, use it to pay off your consolidated loan. This means that you should not be content with just paying the minimum monthly payment for the loan. Your goal is to pay off the entire loan as soon as possible. If you allow the loan to use the entire length term, you are still paying for the interest rate that is attached to the loan.

Maintain Discipline

The most important thing that finance and debt help experts emphasize about consumers consolidating their loans: you have to be disciplined. This is not a debt relief method, but rather a means designed to make debt easier to manage. When you pay off your credit card, avoid using them. The worst thing that you can do while dealing with debt is to add more debt. Change your old spending habits that got you into major debt problem in the first place. It can be understandable when you have your credit cards within easy access. But you will never end this cycle unless you change your perspective about money. Check out Debt Helpline for more details.

If you want to regain financial freedom, you need to adapt the strategies above for immediate debt help and relief. Debt Helpline in Australia is a company experienced and taught on handling debt. If you’re struggling, you can visit them online for a free consultation and debt management planning: http://www.debthelpline.com.au/.