A Debt Agreement is a legally binding payment arrangement that is designed to act as a sort of mediator between you and your creditors. It ensures that you are only paying what you can actually afford, and that your creditors are all being treated fairly and getting a proportionately equal share of those payments.

When working out what your Debt Agreement offer is going to be, then, it should be (and often is) a simple matter of your income minus your essential expenditure – everything that is left over is offered to your creditors, and they will receive that as payment after government costs and administration fees are taken care of. Your best offer should always be as much as you can afford.

Sometimes, however, it is not such a simple matter. Whilst in theory it is your best offer that should be accepted, the reality is that some creditors have certain expectations from a Debt Agreement and will not be accepting of it if it doesn’t meet their criteria. And many of their criteria are different – some may like 60%, others may want 70%, and whereas one creditor may be happy with a 5 year term, another will not accept anything over 4 years. In addition, for a Debt Agreement to be passed during voting, you need not only 50% in number of your creditors to accept it, but also 50% of the voting value of their debts. So if your best offer is not likely to be accepted by those that you owe the most money to, sometimes a less orthodox approach can work, such as supplementing the offer with the sale of an asset, or getting the assistance of a spouse or family member.

Getting the right balance of affordability and acceptability can be tricky, but you should not have a problem if you choose the right Debt Agreement Administrator. Here at Debt Agreement Advice Centre we have specifically designed our software to be able to take your individual voting percentages into account, and we have years of experience in dealing with creditors and gauging their criteria. And unlike other companies who will start charging you money without first knowing what your best offer is, there are no fees incurred with us until we have confirmed that you have an offer that we all feel confident in putting forward to your creditors. Call us today on 1800 653 485 and find out whether a Debt Agreement might be a feasible option for your financial troubles.