Posted by Henry | DEBT AGREEMENTS,GETTING OUT OF DEBT | Thursday 24 October 2013 10:20 am
Number of Australians turning to debt
agreements is on the rise
man interviews couple
Australians are turning to debt agreements over bankruptcy to escape financial
turmoil, with an increase of 68 per cent in the last five years according to a debt
management specialist.
He says the rise in debt agreements relates directly back to people’s need to protect their assets.
“Australian’s owe over $50 billion on credit cards as living costs force them to put
everyday expenses and even mortgage repayments on plastic,” He says.
“The part nine debt agreement is the best alternative for people who need to
consider bankruptcy but have assets they want to protect
“A debt agreement is still part of the bankruptcy act and, if entered into, it’s listed on
their credit file in the same way as bankruptcy, however it is increasingly becoming
the preferred option so struggling families don’t lose their home.”
Insolvency and Trustee Service Australia figures show there were 49,034
new debt agreements made between January 2007 and December 2012.
Brisbane woman Ms Gallagher says she feared the welfare of her family as she
struggled to keep up with the mortgage as well as tonnes of consumer debts.
“We were overwhelmed by debts and at limit on credit cards so I couldn’t even find a
way to move money around to improve the situation,” Ms Cronin says.
“It was starting to look like bankruptcy was our only solution, but I was determined to
find a way to keep the house.
“It was a security thing more than anything, we had lived there for years and I was
pregnant with my second child so we needed a home for our family.”
Ms Cronin says once she had done her research and decided to enter into a debt
agreement it was a matter of finding the right financial company for the process.
“I sent an email with my long list of questions to several different companies and I
received the most comprehensive response from these funders ” Ms Cronin
Creating a debt agreement is a very complex process for finance companies but I
was only ever shown compassion and understanding to my situation.

“I was fortunate to receive fast and efficient service, with my debt agreement being pulled together before I left work for maternity leave.

“I had a set amount to pay each week that was tailored to suit my budget, I paid it to
just one account and the rest was dealt with by Some lenders
He says entering customers into a part nine debt agreement is a complex
process, but makes payments very simple and straight forward for customers.
“Once an application is approved, all unsecured debts are included in the debt
agreement and the creditors will only receive a percentage of their debt back.
“The debts are frozen so no interest can be added on and at the completion of the debt agreement the remainder that wasn’t paid must be written off by creditors
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Henry Sapiecha
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