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Debt Management Solutions FAQs

What type of debts can I include in my Debt Management Solution?

Our Debt Management Solutions typically include your unsecured debts like credit cards, personal loans, payday loans, ATO debts, some Centrelink debts, and outstanding utility and phone bills.

Part IX (9) Debt Agreements cannot include certain fines, penalties, HECS debts, and some Centrelink debts.

Can I include secured creditors in my Debt Management Solution?

No.

The Debt Management Solutions we generally recommend do not include secured creditors like home loans, some car loans, or other loans secured by property.

However, as part of the overall solution, we may suggest a refinance of your home loan, debt consolidation or a negotiation with your lenders to achieve a better interest rate or lower repayment.

What if I have already been declined by a lender?

If you have been knocked back by a major lender, credit union or other financial institution, we could still assist you. We have access to a range of financial services and products which allows us to offer lending alternatives that other lenders can’t.

We also have solutions for those with impaired credit files.

Who deals with my creditors?

We do.

Once you agree to a Debt Management Solution, our team will handle all communications with your creditors. We negotiate on your behalf to reach a fair and mutually beneficial agreement. This includes preparing and submitting a proposal to your creditors, managing any necessary negotiations, and ensuring that all payments are correctly administered and distributed to your creditors.

Will calls from my creditors stop?

Yes.

All creditor calls and harassment chasing funds will stop once we are appointed on your behalf.

How long will my Debt Management Solution take to complete?

Most solutions last between 3 to 5 years.

The length of your Debt Management Solution depends on your debt level, budget, and creditors. Negotiations with creditors can vary, which might affect the length of your solution.

The type of agreement you enter into with creditors may also impact the length of your solution.

Can I pay more if my situation improves or pay off my creditors early?

Yes.

You can increase your repayments anytime if your financial situation improves. Extra funds can be used to pay creditors more each month or saved in a Trust Account to offer a lump sum settlement. There are no penalties for paying off your debts early.

Can I put my payments on hold, if my circumstances change?

Yes, in some cases.

If your circumstances temporarily change, we can work with your creditors to reduce or pause payments. If your situation permanently changes and you struggle to make payments, we can adjust your solution and review your options regularly.

Missing payments or falling into arrears can have consequences, particularly for Part IX (9) Debt Agreements and Part X (10) Personal Insolvency Agreements.

What happens after your Debt Management Solution is finished?

Once your agreement is complete, you will no longer owe the included creditors and can take back control of your financial future.

By sticking to your repayments, it will allow you the opportunity to slowly rebuild your credit score and truly put your financial issues behind you. To rebuild your credit rating and gain trust with lenders, you can:

  • Pay all your bills on time
  • Pay more than the minimum
  • Keep up to date with payments
  • Avoid making excess credit enquiries
  • Avoid credit cards at all costs and instead develop a healthy savings account

Will a Debt Management Solution affect my employment?

Generally, No.

However, entering into a Part IX (9) Debt Agreement or a Part X (10) Personal Insolvency Agreement might make it difficult to hold certain licenses, such as a real estate license, which can affect your professional or trade organization memberships.

There is no effect if you enter into an Informal Agreement.

Will a Debt Management Solution affect my credit file?

Depends. The impact on your credit file will depend on the agreement entered into with your creditors.

For Part IX (9) Debt Agreements and Part X (10) Personal Insolvency Agreements, it will be listed on your credit file for a period of 5 years + 1 month from the AFSA processing date or the date your agreement is completed, whichever is later.

Informal Debt Agreements are not listed however, any hardship arrangements will be noted on your credit file; however, they will not impact it.

The overall effect on your ability to apply for loans can vary. We offer lending alternatives that may still be available to you, even with an affected credit file.

How Can We Assist You Today?

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Business Debt Icon Business
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Unsecured Debt Amount

$8,000
$1,000
$100,000+

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Trust Icon Trust
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Business Debt Amount

$100,000
$10,000
$1,000,000+

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