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.