Entering a debt agreement can seem like a daunting task for many individuals riddled with debt.

It is important to recognise that the debt agreement pros and cons will vary depending on individual circumstances. Factors, such as the number of creditors and amounts owed on your debts, will shape the overall debt agreement pros and cons that are most applicable to your situation.

While debt agreement pros and cons should be explored with the assistance of a professional debt advisor, below are just a few of the typical debt agreement pros and cons individuals can rest assured will be applicable to their situation.

Debt Agreement Pros:

• Debt agreements can in some situations be more affordable than your regular creditor repayments;
• If your debt agreement is accepted by your creditors, they are unable to take or continue legal action against you;
• Once a debt agreement is successfully accepted by creditors and completed, the individual’s debts are effectively settled, providing a fresh start;
• Contributions to your debt repayments are tailored to your specific circumstances and therefore won’t dramatically change your standard of living;
• A debt agreement can provide a way to become completely free of unsecured debt, as any remaining unsecured debt is legally written off once it is completed;
• Based on a strict budget, some people find debt agreements help them control their money and spending habits, allowing some clients to save money while also repaying debts;
• All interest and charges associated to those unsecured debts will be frozen during the course of the debt agreement; and
• As opposed to bankruptcy and some other options to debt, you can keep your secured assets –provided that you are able to continue to pay for them.

 
Debt Agreement Cons:

• A default on your credit file will exist for up to 5 years; and
• A record of the debt agreement will be kept on the National Personal Insolvency Index for 5 years.

 
It can be highly beneficial to weigh up and evaluate debt agreement pros and cons with the help of an experienced professional debt advisor.At the Debt Agreement Advice Centre, our friendly and licensed debt agreement advisors can help you explore what alternatives may exist to assist you with your situation and debt repayments.

Contact the Debt Agreement Advice Centre today on 1800 653 485 or browse our website for more information.

Whilst preparing and filing a Debt Agreement proposal yourself may seem like a quick and easy option, it isn’t always as simple as it looks.

The process can involve a series of complex steps and a high level of experience is needed in order for it to be set up successfully.

To set up an effective Debt Agreement you will need to:

• Prepare a sustainable budget over the period of the proposed Debt Agreement;
• Work out precisely how much you owe your creditors (including secured and unsecured creditors) and then work out what debts can go into the Debt Agreement;
• Calculate how much of your repayments will go towards associated fees; and then
• Work out how much you are going to offer your creditors as a dividend.

 
Appointing a Registered Debt Agreement Administrator will help to simplify this process and save you both time and money.

Why choose a Debt Agreement Administrator from DAAC?

• We have years of experience in preparing successful Debt Agreements
• We are fully qualified and licensed to offer all formal debt relief solutions
• We utilise state of the art debt assessment software
• We will provide you with entirely free initial advice.Most Debt Agreement Administrators will charge a set-up fee as soon as they begin working with you. However, at DAAC, this fee will only apply after we complete a thorough debt assessment and confirm your eligibility and willingness to proceed. We understand that it may be a financially difficult time for you and therefore do not insist upon up-front payment of the full fee.

 
Get in contact today for free advice

Give us a call on 1800 653and speak with one of our friendly and professional debt consultants today, or email your local branch at one of the listed locations:
http://debtagreementadvicecentre.com.au/contact-us/

Here at the Debt Agreement Advice Centre, we pride ourselves on the reputation we’ve established for being ethical, certified and trustworthy industry professionals.

We believe that all Australians should be able to make informed decisions regarding their personal debt solutions, which is why we offer all of our clients complete transparency regarding Debt Agreements; the good, the bad and the ugly.

The Ugly

The main consequence of a Debt Agreement is that it will put a default on your credit file for a minimum of 5 years.

The Bad

After lodging a Debt Agreement, a permanent record of the Debt Agreement is kept on the National Personal Insolvency Index. This can only be regarded as ‘bad’ to an extent, as one must pay a fee to access this, meaning that it is rarely viewed by the public.

The Good

Regardless of these negative consequences of a Debt Agreement, there are also several advantages, with the most significant one being that the interest on your debts becomes frozen when the agreement is accepted.After the completion of the Debt Agreement, you are legally no longer liable for any of those debts. Another ‘good’ effect of a Debt Agreement is legal protection from your creditors, meaning that they cannot have you made bankrupt to recoup your unsecured debts; this protects any assets that you own outright, such as a car or your home. In addition, a Debt Agreement will not affect your ability to travel overseas like bankruptcy does.

At DAAC, we stand by our promise of full disclosure, and therefore will not chargeyou any fees for our service until we have confirmed that a Debt Agreement is the best option and you decide to go ahead. We leave it to you to decide; Debt Agreements – right or wrong for you?

To further discuss the advantages and disadvantages of a Debt Agreement, or to find out if a Debt Agreement is right for you, give the Debt Agreement Advice Centre’s 24/7 hotline a call today on 1800 653 485.