When it comes to choosing a debt solution for your financial difficulties, it is important to explore your options thoroughly so that you completely understand how it may affect you. One such solution is a Debt Agreement.

A Debt Agreement was not designed to allow people to get away without paying their debts but as a legal alternative to Bankruptcy. This is why there will be some Debt Agreement Consequences that you need to be aware of.

One of the main Debt Agreement consequences is that there will be a record of the Debt Agreement on the National Personal Insolvency Index. This listing on the NPII will be taken off once you successfully complete the agreement.

A default will also be placed on your credit file for a minimum of 5 years, however, after you successful complete your debt agreement this listing will be removed which will hopefully allow you to obtain finance again.

However, while there are some Debt Agreement consequences, there are also advantages to entering into a Debt Agreement.

A Debt Agreement means that the debtor is released from most unsecured debts if they fulfil the obligations outlined in the arrangement. It gives the debtor space from creditors to repay their debts without being hassled.

In addition, debtors that enter into a Debt Agreement will be able to see the light at the end of the tunnel in which after their agreement is completed, they will be debt free. It helps to alleviate stress and pressure, which makes the Debt Agreement consequences worthwhile.

If you would like to find out more about Debt Agreement consequences, or whether a Debt Agreement is the best solution for you, then please contact DAAC on 1800 653 485. Our phone lines are open 24/7 so you can call whenever it is convenient for you – completely free of charge.

If you find that your personal debts are spiralling out of control and creditors are beginning to hassle you, then you need to start exploring your debt relief solutions. One of those options is bankruptcy, though this should be considered as a last resort. If you want to avoid bankruptcy, then the Debt Agreement Advice Centre may have a viable solution for you. At DAAC, we offer Debt Agreements as a way to avoid bankruptcy.

A Debt Agreement is governed under Part IX of the Bankruptcy Act 1996. It is a formal agreement arranged between a debtor and their creditors in which the debtor needs to pay an agreed amount to the creditor over a certain period of time to repay the debts owed. It usually runs for 3 to 5 years and the stipulated amount is usually less than the due payment.

In order to avoid bankruptcy, the majority of your creditors need to agree to your proposed Debt Agreement, and you also need to be confident that you will be able to meet the guidelines established. Otherwise, missing payments or having late payments will affect your agreement and may potentially result in its termination.

Knowing what terms and conditions to put in a Debt Agreement can be a difficult and stressful process, but DAAC will assist you. We will gain insight into your personal situation, and determine how much you will be able to realistically afford, while still keeping your creditors happy.

If you are wondering whether a Debt Agreement is a right choice for you, the first step is to find out more about this debt relief solution by talking to a professional. DAAC offers 24 hours, toll-free hotline where you can speak to our friendly and professional debt consultants and get free advice. DAAC can help you avoid bankruptcy as we have a reputation within the industry of being professional and ethical. We are also fully qualified and licensed to ensure that you are given the most appropriate advice and recommendations to achieve the best outcome possible. Avoid bankruptcy and give us a call on 1800 653 485.