For many people, the worst part about being in debt is the stress that comes with the constant calls from their creditors. One of the biggest drawcards of a Debt Agreement is that it gives you legal protection from your creditors, which means that the stressful and annoying phone calls stop.

To get protection from creditor action, though, your debts have to be the kind that can be included in a Debt Agreement. Generally speaking, these are credit cards and personal loan debts, those which do not have an asset attached to them as security that the creditor could take if you were to stop paying. A Debt Agreement will not stop your secured creditors from taking action to recover their debts, unless they agree to remove the security (which is highly unlikely) or they sell the secured asset and there is a shortfall amount remaining.

But if your debt is definitely unsecured, that creditor cannot legally ask you for any more money, even if they are calling you because the debt has since been sold to them and they do not know about the Debt Agreement. Some creditors may claim that they have never received notice about the Debt Agreement, in which case you would simply and firmly refer them to your Debt Agreement Administrator. The important thing is to ensure that you list all of your debts when you first apply for the Debt Agreement, so that no one can complain that you didn’t disclose everything. And if it is a secured debt that is causing you problems, a Debt Agreement may still help – many people find that with their unsecured creditor payments reduced, and a budget drawn up for them, they are able to get on top of their secured creditor repayments.

If you are being hassled by creditors for payments that you cannot afford to make, you should speak to a professional debt advisor here at the Debt Agreement Advice Centre.  Call our toll free line on 1800 653 485 and benefit from our years of experience in helping people like you solve their financial problems.