There is a huge variety of available and this section provides a wealth of information on your main options. Alternatively if you would like to discuss your specific situation with a Debt Consultant feel free to contact us.
Debt Consolidation
For those in good financial standing the option of consolidating all debts under a single personal loan or mortgage may be available. Often, consolidation loans have a longer time frame and a lower interest-rate than credit cards or payday loans. This removes the stress of dealing with high interest, short-term repayments. Consolidation loans are available as either an unsecured personal loan or a mortgage.
Payment Strategies
Payment Strategies are about becoming debt free without restructuring your finances. Payment Strategies are the main tool of financial counsellors. Payment Strategies work best with credit card debt. If you have personal loans there maybe a penalty for paying out early which counteracts any savings. If you have both, there are still benefits to Payment Strategies.
Debt Agreements
A Debt Agreement is the ideal option for anyone who lacks the capacity to meet their financial commitments, but does not want to consider bankruptcy.
A Debt Agreement is similar to a consolidation loan. All of your debts are included in the one contract. Like a consolidation loan, this means one regular repayment instead of several. Unlike a consolidation loan, any interest on the debt is frozen, you only repay what you can afford to and the remainder is legally written off.
Personal Insolvency Agreements
Some individuals may not be eligible for either a consolidation loan or a debt agreement. We also offer another form of consolidation, Personal Insolvency Agreements, to cater to these individuals. Personal Insolvency Agreements are similar to both consolidation loans and debt agreements, but generally have more than $80,000 in debt.
Financial Hardship
If you’re suffering from temporary financial hardship (illness, unemployment or other reasonable cause) you have the right to request that your creditor changes your loan contract. This is referred to as a Hardship Variation. As of July 1 2010 all creditors are consumer credit providers are regulated by the NCCP (National Consumer Credit Protection Act). Which lays out the requirements of how lenders can deal with consumer, which includes Financial Hardship requirements.
Bankruptcy
Depending on your specific situation, bankruptcy may be the solution for you. Bankruptcy wipes away all of your unsecured debt in one fell swoop. It is essentially a financial fresh start. However, the rules and regulations around bankruptcy are complex and it is not a decision that should be entered into lightly. Bankruptcy however is not a punishment, it’s a legal solution for those who are unable to repay their debts.
