A Debt Agreement is an option for those who are experiencing personal financial difficulties. To be eligible to enter into a Debt Agreement, you need to meet certain requirements.

The first criteria you need to meet is that you need to be insolvent. This means that you are “unable to pay your debts as and when they fall due.” Insolvency includes being able to pay your debts but resorting to credit to do so.

To be eligible to enter into a Debt Agreement, you also need to meet thresholds called “indexed amounts.” These indexed amounts concern your annual income, total unsecured debt amount and equity in any assets you may have.

If you fall under the threshold in all of these areas, then you are eligible for a Debt Agreement.

These thresholds are updated twice a year in March and September but the indexed amounts are current (at the time of writing):

Income (after tax) – $ 83,169.45
Total unsecured debts – $110,892.60
Total unsecured assets – $110,892.60

While meeting the above requirement means that you are eligible to enter into a Debt Agreement, you also need to ensure that you have the ability to honour it.

This is why a Debt Agreement Administrator will conduct an investigation into your personal financial affairs to determine whether or not you will be able to afford an acceptable Debt Agreement repayment plan, even after you have paid for your essential living expenses.

If you would like to learn more about entering into a Debt Agreement, then please contact Debt Agreement Advice Centre. We will give you a free initial consultation so that you can make sure that a Debt Agreement is the right solution for you before making any payments.

Please contact us on our 24/7 toll-free hotline on 1800 653 485.

A Debt Agreement is an arrangement between you and your creditors whereby you pay them back an amount that you can comfortably afford and that they accept. It runs for usually 3 to 5 years and during this time, all interest is frozen and creditors are unable to take any further recovery action against you.

By entering into a Debt Agreement, you have the legal responsibility to ensure that you can honour your commitment for the entire duration and pay back the agreed amount.

But what happens if you default on a Debt Agreement?

If for any reason, you default on your payments, you have exactly three months to make up for the missed payments. If you are unable to do so at three months and one day, then your Debt Agreement Administrator must send out a statutory default notice to all your creditors telling them this.

After another three months, if you still miss payments, then your Administrator must send yet another statutory default notice to your creditors, and so forth.

Your creditors can then use these notices to terminate your Agreement. A warning sign is when, after receiving three default letters, they ask your Administrator for a Status Update report.

As a consequence, if your Debt Agreement is terminated, then all your debts and interests will be reinstated as if the agreement never happened. Also, you will no longer have legal protection from your creditors.

Your Debt Agreement status will come up as “unfinalised” for up to 7 years in which the default will then be cleared from your name.

If you have a valid reason as to why you have defaulted on your Debt Agreement, then it is possible to update your arrangement but it must be done with the agreement of your creditors.

A Debt Agreement is a good debt solution for those who are struggling with their personal finances. As you can see, though, it is important that you propose an arrangement that you will be able to sustain for the entire duration of the agreement. Talk to a professional Debt Agreement consultant at DAAC for expert advice on your repayment capabilities on 1800 653 485.

One of the major advantages a Debt Agreement has over Bankruptcy is that you will be able to keep your house as long as you disclosed it to your creditors when you set up your Debt Agreement and you comply with the terms of your Debt Agreement.

Assuming you have complied with the above, then your house will be protected.

This is because by entering into a Debt Agreement, you avoid becoming bankrupt. Only in bankruptcy will you run the risk of losing your house.

Other requirements that you need to meet in order to keep your house while entering into a Debt Agreement include:

• Keeping mortgage repayments up to date (otherwise you may risk losing your house through a mortgagee repossession)
• Disclosing the full details of your house in your Debt Agreement proposal

By meeting these terms, you can protect your house from being sold by the mortgagee or by a Bankruptcy Trustee. If you would like to avoid Bankruptcy and protect your house, then a Debt Agreement may be your best choice.

At Debt Agreement Advice Centre, we have years of experience in helping Australians enter into a Debt Agreement and protect assets such as their house. If you would like to find out more information and see how we can help you, please call our friendly debt consultants for expert advice on 1800 653 485 (toll-free).

Creating a budget it easy. Trying to stick to it, however, is a different matter. Maintaining your budget is a feat that is often easier said than done.

But at Debt Agreement Advice Centre, we have identified one thing that you need to do to muster up to motivation and strength to control your finances and current spending patterns.

That is:

Think of the big picture.

What exactly does this mean?

Take time out to brainstorm on what you really want. It may be to become debt free, to save up for a big holiday or to buy a new house or car.

Whatever it is, this is your “big picture”.

This means that every time you feel the urge to spend on the expensive watch that you saw when you were window shopping or the new pair of shoes that you really want but don’t really need, think about what the big picture.

By doing this, you are weighing up your short-term, temporary wants and your long term goals.

It will help you control your spending habit by making you weigh up short-term happiness with what you really want.

Do you go out to eat every lunch? Do you always reward yourself with a nice dinner at the end of a long, hard-working day?

Curb this habit by telling yourself that every little meal you skip, you are saving up to have a delicious lunch in Bali or a plane ticket to Canada or so you can cook your own Sunday BBQ in your new house.

This helps transform your mentality that you are making sacrifices and depriving yourself and rather helping yourself hit that bigger picture, putting things into perspective.

If you are currently experiencing financial trouble and would like help in reaching your big picture, then speak to one of our experienced personal debt consultants at Debt Agreement Advice Centre. We will help you explore your options such as a Debt Agreement to determine which one best suits your needs.

Please call us on our toll-free, 24/7 advice line on 1800 653 485.

A Debt Agreement is an option for those who are looking for a way to get out of debt without restricting their flexibility and freedom like other options such as Bankruptcy.

It means that you will be less stressed about your debts because you have formalised an agreement with your creditors. It will provide financial structure and help you see the light at the end of the tunnel.

Most Debt Agreements last between 3 and 5 years in which you agree to pay a proposed sum to your creditors during that time. This is why it is important that when you enter into a Debt Agreement that your repayment plan is sustainable.

Another reason why you should consider entering into a Debt Agreement is because it is less restrictive than your other options. For example, in a Debt Agreement, you are free to travel overseas without having to obtain permission from your Trustee if you go bankrupt.

In addition, under a Debt Agreement, you are allowed to keep your car if you own it outright and disclose its value in your Debt Agreement proposal. In other debt solutions, like Bankruptcy, you will not be allowed to keep your car if it is worth over $7,700.

Similarly, if your house has equity in it, then your house will be protected and your unsecured creditors will be unable to take any debt recovery action against you. However, you must disclose the details of your house in your Debt Agreement Proposal, follow all the obligations outlined in the proposal and keep your mortgage repayments up to date.

If you are still wondering why you should enter into a Debt Agreement or would like to find out more information, please contact us on 1800 653 485.

The best way to avoid bankruptcy is to be financially responsible. Here are some tips on how to ensure that you stay on top of your finances and are always in control.

1. Create a budget

Creating a budget is a simple yet effective way to avoid bankruptcy. A budget will help make sure that you are keeping track of your income and how much money you are spending. It will give you valuable insight into your current financial status and help you make informed decisions about money which can prevent you spending money that you don’t have.

A strict budget may help you avoid bankruptcy because it will help you reduce your debts. A budget should take into account all bills and their payment dates so you don’t get further in debt with late payment fees. This routine will in the long run help you save money and gain control of your finances.

If you want to treat yourself once in a while and indulge yourself, this needs to be factored into your budget. In fact, budgeting for these rewards will make you enjoy them more as well!

2. Emergency savings

One of the best ways to avoid bankruptcy is to set aside a percentage of your savings that you do not touch unless it is an emergency. This way, if an emergency does occur such as sudden injury in the family which will result in a loss of income in the household, or a medical emergency, you will have a certain amount of money set aside to use. This will prevent you from relying on credit cards to help you through these types of emergencies.

How much your emergency savings account should hold depends entirely on you. As a minimum we recommend you have at least three months of living expenses in your account.

Debt Agreement Advice Centre are expert debt consultants who can help you avoid bankruptcy. If you find that your debts are piling up, we can provide you with one of our debt relief solutions such as a Debt Agreement. We will assess your situation to determine whether a Debt Agreement can help you. If so, then our Debt Agreement consultants will take you through the process step by step to help you avoid bankruptcy and get out of debt. Call us on 1800 653 485 for a free initial consultation.

If you are experiencing personal debt solutions, then one solution that you may be considering is a Debt Agreement. But what is it and how does a Debt Agreement work?

A Debt Agreement is a formal agreement established between you and your creditors. It is governed under the Bankruptcy Act, which is why people always assume that it is Bankruptcy. It is not; it is an alternative to Bankruptcy.

The way a Debt Agreement works is that you submit an agreement to your creditors whereby you propose to pay back as much as you can afford towards your debts (usually for an amount less than what you owe) over a period of time. A typical Debt Agreement lasts for 3 to 5 years after which all your all your unsecured debts (that you had when you entered into the agreement) will be written off and your creditors will be unable to recover the rest of the debts you owe.

In order for your Debt Agreement to be formally approved and set up, creditors that hold the majority of your debts need to agree to it. If they do, then the Debt Agreement is binding on all creditors.

There are many advantages to a Debt Agreement. It freezes interests on debts and prevents creditors from constantly hassling you. It also gives you more freedom than other forms of debt solutions such as Bankruptcy, which limits your ability to travel overseas.

However, there are also some disadvantages that do come with entering into a Debt Agreement. It will be permanently recorded on the National Personal Insolvency Index and a default will be on your credit for a minimum of five years. If your Debt Agreement runs for over 5 years then this number could change.

If you would like to know more about how a Debt Agreement works or whether it is the right solution for you, then please call our friendly and professional debt consultants on 1800 653 485.

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.

A Debt Agreement is a debt solution designed for those experiencing financial distress. It is a formal agreement in which you propose to pay back your creditors an agreed sum over a certain period of time. After the Debt Agreement ends, your provable debts are extinguished and creditors cannot take any further action against you or chase you for any outstanding payments.

A Debt Agreement may seem like a great way to clear out your unpayable debts, however, it is important to note that not every debt can be included.

In order for a debt to be included in a Debt Agreement, it needs to be a “provable debt”. Provable debts are debts that would be cleared if you were to go bankrupt, or enter into a Debt Agreement or Personal Insolvency Agreement.

Provable debts include:

• Personal credit card debts incurred before administration
• Personal loans incurred before administration
• Utility payments, including electricity or phone fees
• Medical fees

Debts that are not included in a Debt Agreement are called “non-provable debts”. These are debts that you still must pay even if you enter into a Debt Agreement.

Some examples of non-provable debts are:

• HECS debts
• Court imposed fines
• Student loans
• Debts incurred by fraud
• Child support
• Debts incurred after administration

If you would like more information, the debt consultants at the Debt Agreement Advice Centre are experts on Debt Agreements. With a success rate as close to 100% as you can get, you know you can trust us to give you the right advice.

You will not incur any fees from us until we have conducted a full financial assessment and believe that we can help you, with the lowest price guaranteed.
If you would like advice on a Debt Agreement, please call us on our 24 hour free advice line today – 1800 653 485.