Although the end of your debt agreement may seem like a long time away, it will come to an end soon. When the day comes it will mark the beginning of your journey back to repairing your credit and getting control of your personal finances again.

When your debt agreement comes to an end, it will release you from all your unsecured debts (credit cards, personal loans, utilities) that you once had. It’s important to remember that you will not be released from any HECS/HELPS debt so you will need to pay these. Successfully completing your debt agreement is the first great place to start getting your personal finances back on track, so you do not end up in the same financial position. By now you should have learned to live within your means and you should have stuck to the budget you agreed with your debt agreement administrator.

Your credit file will be cleared after 5 years, but remember one will still be able to see it on the National Personal Insolvency Index (NPII), but the good news is that not many people search the NPII.

If you would like to find out more about what happens after completing your debt agreement, contact Debt Agreement Advice Centre. We have years of experience in helping Australians enter into a Debt Agreement and work out the best solutions. If you would like to see how we can help you, please call our friendly Debt Agreement consultants at DAAC for expert advice debt consultants for expert advice on 1800 653 485 (toll-free).

There are many different options you can pick when it comes to servicing your own personal debts. Individuals are often conflicted in whether or not they should enter into a debt agreement or declare bankruptcy. There are some important things you should know to help guide your decision.

Bankruptcy is primarily chosen when you have a large number of unmanageable debts that you cannot service. Declaring bankruptcy can potentially result in the selling of some of your assets (home). However, if you still have a job that provides you with a stable stream of income, a debt agreement can be a more suitable alternative, as it is an agreement for you to pay a percentage of your total debts.

Furthermore, when you set up a debt agreement you will pledge a specific amount (which will be based on what you can afford). In comparison to Bankruptcy you will lose any assets over the protected values and you will be subject to a yearly income contribution assessment which means you may need to pay compulsory contributions from your salary into your estate.

In order to choose a debt agreement, there are certain limits of income and debt that need to be met. It is best to consult with one of our professionals today at the Debt Agreement Advice Centre as these thresholds change every six months. We have years of experience in helping Australians setting up and completing debt agreements. If you would like to find out more information and see how we can help you, please call our friendly debt agreement consultants at DAAC for expert advice debt consultants for expert advice on 1800 653 485 (toll-free).