What is a debt agreement?
If you are currently overwhelmed with debt, a debt agreement could be the perfect answer for you. A debt agreement is just a basic negotiation with all creditors. As soon as you and your creditors agree, it becomes a legally binding document. Fox Symes does more debt agreements than any provider in Australia.
What are examples of the types of contracts that are put forth?
You may want to pay off less than what you fully owe on your debts. You may want to stop paying off your debts all together. You may want to transfer your property to a certain creditor to have them accept that as full or piecemeal payments. You may want to make regular payments out of your salary to your various creditors now.
Who is eligible for a debt agreement?
A debt agreement will work for you if you have not applied for bankruptcy, or had a debt agreement before. You must also have an income that after taxes is under $73,000. You must have debts that are not secured of under $97,000 or so. You must also be insolvent.
What are some common questions about debt agreements?
A lot of people aren’t clear on the meaning of “insolvent”. Insolvent is when someone cannot pay what they owe as soon as repayments are due. A debt agreement is also not bankruptcy. Many people confuse the two. It is actually a choice outside of bankruptcy. However, it is technically qualified as a “bankruptcy act”. A debt agreement puts a freeze on all your current debts and enables you to pay them back to creditors week by week at a price you can pay back.
Types of unsecured debt include doctor bills, store cards, and personal loans etc. Not all the creditors are forced to acknowledge what you propose, but the majority of them do have to.
The debt agreement will affect your credit report. It is reported on the National Personal Insolvency Index. Your current agreement can stay on your credit report for up to seven years. The ITSA can block your proposal if they do not know it is best for your creditors. However once it is accepted, creditors can choose either to comply or discard it within 35 days. There is a processing date and a deadline date. You are not under any obligation to pay your creditors during the period between your processing and deadline date.
Look at this typical case study for a debt agreement
The story of John and Jocelyn is a good one for those embarking on a new debt agreement. It can give hope and help to other people that are considering getting a debt agreement for the first time. Their story is so common and like so many others. They had been struggling to pay back their loans and credit cards for over a year. The problems started about a year and a half ago when John lost his job for five months and couldn’t make repayments to his creditors or even his customary bills. Some of the creditors started out on the defaults, and some even took out legal action.
John and Jocelyn just couldn’t meet their monthly debt payments. Their debts were about $32,000. Their monthly repayment was $1,150. However, after they met their living expenses each month, they only had about $410 left each month. They had a credit card account with an interest rate of 17.50% and a balance of $12,500 that totaled a $375 monthly repayment. They had another credit card account with an interest rate of 17.50% and a balance of $8,500 that totaled a $255 monthly repayment. They had a personal loan account with an interest rate of 12.50% and a balance of $4,800 that totaled $310 each month. Furthermore, they had a store card account with an interest rate of 27% and a balance of $7,000 which totaled a $210 monthly repayment.
John and Jocelyn contacted Fox Symes to get them a debt agreement. The outcome was, they would only be forced to pay $410 each month to their creditors for four years. This would reduce the total that they owe to $19,680. Their creditors agreed to waive all the interest. They would be completely debt free at the end of four years.
John and Jocelyn’s case is an example of what can happen with a little luck. Fox Symes was the missing piece though. They would never have been able to do it on their own. Luckily, Fox Symes has helped thousands of people just like John and Jocelyn to get their debt paid and their lives fixed once again. No one can foresee a job loss, or an unexpected bill, and it is best for people that are struggling to rely on the hard work and tenacity of companies that will do debt agreements on their behalf.
John and Jocelyn share the life story of so many other people that are struggling with debt. It is no fun to have to endure what creditors can throw out at you. You don’t want to have to deal with them all on your own. That’s why it’s best to have a company on your side that can go up against them. Let Fox Symes do it for you, and you’ll rest a lot easier every single night.
Who is a debt agreement good for?
A debt agreement is good for any struggling individual, family, or business that just cannot seem to get their financial situation together. They may have a lot of problems with their debt, bills, creditors, and personal finances. It helps to have a structured payment plan in place. There is nothing worse than having your debts spin out of control. Debt agreements are good for people in all walks of life, from individuals, families, and businesses, and more. There are all kinds of debt agreements in place for many different situations.
What are the pros of a debt agreement?
The pros of a debt agreement are that your debt is not going anywhere, and it will be there no matter what, whether you have a debt agreement or not. The debt agreement just helps you pay it back in a structured way. It looks better on your credit report to have a debt agreement rather than going bankrupt.
Getting a debt agreement is taking a proactive, permanent solution to a persistent, difficult problem of having too much debt that you are unable or insolvent to afford. Most creditors will accept and respect you for getting into a debt agreement, and they would prefer you do that than go bankrupt.
Fox Symes is the largest provider of debt agreements in Australia, and they have the right people that can get your debt under control once and for all. They have worked with thousands of people, and they will create a proposal that is tailored to your situation.
Read more: Fox Symes Debt Agreement Solutions