Take Back Control With An Informal Agreement

Any.

• You can include any debt you owe in an Informal Agreement. Typically credit cards, personal loans, utility bills and tax debts are included in an Informal Agreement. Informal Agreements also renegotiate your unsecured debts to fit in with a mortgage refinance or debt consolidation loan.

No.

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.

Yes.

There are no restrictions.

Yes.

You can enter an Informal Agreement while you’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.

There are multiple. Your Customer Success Specialist will work with you to arrange the most appropriate debt solution which will rely on current information around your debts, your budget and your financial position both now and in the future. Below are some of the tailored Informal Agreement types we can arrange for you:

Long Term Informal Agreement: This arrangement reduces the minimum repayment, pauses or significantly reduces interest, has no 'typical' term but may be several years and in many cases even reduces the principal debt amount.

Moratorium: A Moratorium is 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 Settlement: A Debt Settlement is a great options for customers with access to a lump sum not sufficient to repay outstanding debts in full. It is designed to waiver or reduce debt amounts to allow final settlement with creditors. A Debt Settlement is often an excellent solution for customers only able to refinance their mortgage to an amount which may not pay out debts in full, or where an amount of funds is available from family or friends.

Agribusiness: An Agribusiness arrangement is a specific arrangement for individuals caught up in failed agribusiness loan schemes. An Agribusiness arrangement can take the form of a Long Term Payment Arrangement of a Lump Sum Settlement depending on the financial capacity of the individual.

Loan Renegotiation: Is a renegotiation of current loan terms and conditions to reduce interest and increase the loan term with the ultimate outcome being a reduction in the minimum loan repayments.

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.

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 cannot impact your credit score. Failure to meet the minimum payments on your credit facilities during the preparation and negotiation of the agreement can result in poor repayment history reporting to your credit file. Failure to meet agreed repayments under the Informal Agreement during the administration phase can impact our ability to pay your creditors, and also result in missed repayments being reported on your credit file. Generally, creditors will not default a credit file during preparation or administration of your Informal Agreement, however they do retain the right to do so if deemed appropriate. Should you not meet the terms of the Informal Agreement, your creditors will have the right to recommence recovery proceedings which could to them listing defaults and judgements on your credit file.