FAQ Bankruptcy

FAQ (debt solutions)

What is debt consolidation?

Debt consolidation is when you take multiple debts and ‘consolidate them’ so you only need to make a single repayment. There are a number of ways of achieving debt consolidation, it could be through a new loan to cover all your existing debts, or by formally or informally striking a deal with the people you owe money to. The aim of debt consolidation is to make managing your debts easier and you can often end up paying a lot less each month than you were paying before.

Call us to discuss whether this option is right for you.

A debt waiver is when we seek that a person you owe money to agrees to simply ‘wipe’ or ‘write-off’ the debt. There are a number of factors that impact on whether a person owed money (such as a bank) would agree to a debt waiver. A lot depends on your personal circumstances, your income level and your other debts. The success of a debt waiver also often comes down to the art of negotiation. Our specialised staff have experience in negotiating debt waivers and if this is something that you would like to know more about, give us a call.

A hardship agreement is when we negotiate on your behalf with those you owe money to. The aim is to have your creditors (like the banks) agree to give you a period of time to ‘get back on your feet’. Depending on your circumstances, during the hardship period the creditor may agree to allow you to make no repayments and/or agree not to charge you any interest at all (or otherwise, agree to a reduced interest and/or reduced repayments).

A hardship agreement is however only temporary, designed to give you some breathing space - and at the end of the hardship period, you will need to start paying your regular payments again. Call us to discuss whether this option is right for you.

A debt settlement is where we negotiate on your behalf to settle a debt for less than the amount that is owed. This could be a credit card, personal loan, or any type of debt. It may be useful where you may have some money to repay a debt, but not all of it, and you need the other party to come to the table and agree to take a reduced amount in full and final settlement of the debt.

Call 1300 295 137