Why choose an Informal Agreement?
An Informal Agreement is a debt management solution negotiated with creditors to reduce your repayments and pause your interest. Unlike a formal Debt Agreement, it is not backed by legislation.
How Informal Agreements work
An Informal Agreement is a viable alternative to Debt Consolidation. This is what you need to know:
An Informal Agreement is a debt management solution negotiated with creditors to reduce your repayments or pause your interest. Unlike a formal Debt Agreement, it is not backed by legislation.
Contact our Success Specialists for a free assessment that will identify whether an Informal Agreement solution is right for you.
We can offer guidance on the various fees and costs you might encounter with an Informal Agreement, providing total transparency.
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Alternative to Bankruptcy
Provides a viable option to avoid bankruptcy and its associated limitations
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Credit file protection
Acting early can prevent significant impact on your credit file.
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Simplified payments
For ongoing arrangements, make one easy regular payment, with Revive Financial handling all collections and payments on your behalf.
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Interest reduction
In most cases, interest is paused or substantially reduced on your debt.
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Debt reduction
In most cases, it allows you to reduce the total amount you need to repay to your creditors.
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Selective debt inclusion
Not all debts need to be included, giving you flexibility in managing your financial obligations.
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Credit relief
Calls and harassment from creditors cease once they recognise we are working with you to find a solution.
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Creditor cooperation
An administrator of your debts increases the likelihood of creditors continuing negotiations and reaching a final settlement.
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Credit file impact
Informal Agreements are negotiated under Financial Hardship, which may reflect on your credit file for 1 year from the month the arrangement ends if the credit provider participates in Comprehensive Credit Reporting. Financial Hardship information is visible but does not impact your credit score. However, failure to meet minimum repayments during the preparation and negotiation of the agreement can impact your credit file.
Additionally, failing to meet agreed repayments during the administration phase can impact our ability to pay your creditors, resulting in missed repayments being reported on your credit file.
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Compliance requirement
If you don’t meet the terms of your Informal Agreement or make your payments in full and on time, creditors can recommence collection proceedings, take legal action or pursue bankruptcy.
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Non-participating creditors
Not all creditors may agree to a negotiated arrangement and therefore may not be included in the Informal Agreement.
See Informal Agreements in action
See how we’ve helped Australians just like you take back control of their finances with flexible Informal Agreements.
John’s mechanic's workshop suffered a severe downturn during COVID – Revive helped him avoid bankruptcy and protect his livelihood.
The problem
Accumulated $113,000 in unsecured debt across seven creditors after his mechanic's workshop experienced a severe business downturn due to the pandemic, leaving him unable to refinance.
The solution
Negotiated a 5-year Informal Agreement that reduced his total debt by 20% and consolidated it into a single, affordable payment plan.
The outcome
Successfully avoided bankruptcy. His business, income, and family home equity were protected, allowing him to keep his workshop running and continue supporting his family.
An Informal Agreement helps you avoid Bankruptcy by consolidating debts into one manageable payment while often reducing interest and the total amount owed. It can also stop creditor contact and create a structured path to regain financial stability.
Key benefits include simplified repayments via a single regular payment managed by Revive Financial, potential interest pauses or reductions, and the possibility of reducing total debt through negotiated settlements. Not all debts need to be included, giving you flexibility, and having a professional administrator increases the likelihood of successful negotiations with creditors.
Informal Agreements can be used to repay personal loans and unmanageable personal debt, including credit card debts, cash advance loans, Afterpay debts, utility bills and tax debts.
There are four main types of Informal Agreements (Debt Agreements that are not legally binding). These include:
Long Term Informal Agreements: reducing repayments and pausing/reducing interest over several years.
Moratoriums: a short term arrangement with creditors (secured or unsecured) which pauses or significantly reduces repayments and interest over a period of 3 to 12 months.
Debt Settlements: waiver or reduce debts with large lumps sums that don’t cover the full amount of the debt.
Loan Renegotiations: new loan terms and conditions to reduce interest and increase the loan term, thereby reducing overall debt.
No.
However, to ensure the Informal Agreement is effective for you, we need as many creditors as possible to vote in favour of the proposal.
You need to maintain the regular minimum repayments to that creditor.
No.
An Informal Agreement is a renegotiation of your existing debts, and not a new loan.
Yes.
You can include joint debts in an Informal Agreement. However, the co-borrower will need to be part of the Informal Agreement.
No.
Usually, yes.
Many of our customers enter Informal Agreements while they’re on Centrelink or pension payments.
If you fail to make payments in full and on time, creditors may terminate the agreement. They may then recommence collection proceedings, take legal action or pursue Bankruptcy.
The specific terms and conditions of each Informal Agreement are unique and particular to the individuals and lenders involved. In general, the average Informal Agreement typically lasts between 3 to 7 years. However, you can complete it earlier if you make larger repayments than the set amount.
Yes.
All Informal Agreements are negotiated under financial hardship arrangements with each creditor, which can remain on your credit history after the arrangement ends, however does not affect your credit score. This information is visible in your credit report and may be considered by lenders. You can check your credit report and credit history at any time to double check.
Yes.
Our Success Specialists offer a free assessment and then we provide a clear and transparent cost breakdown for negotiating your tailored Informal Agreement proposal and administering your payment plan with your unsecured and secured creditors.
Our specialists offer advice and guidance on your financial situation and debt solutions available to you. We can prepare and lodge a tailored Informal Agreement for you.
We have thousands of five-star reviews and a fantastic reputation for supporting customers with their different financial circumstances. Our compassionate and skilled Success Specialists can set up your Informal Agreement to work towards stabilising your financial position so you can look forward to a brighter financial future.
Yes.
There are no restrictions.
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