Has anyone ever entered into a debt agreement

[Jax Tellers Old Lady]

Hey just wondering if anyone has been in the situation where they have entered into a debt agreement? I am really struggling to pay a debt and cant see anyway out of it i am wondering if this is the best option. I have contacted some people to get info and they have told me that you can have a debt agreement where you make a weekly set amount and they freeze the interest on the debt but the downside is you have avery poor credit rating which stays there for seven years. Can anyone who has done this tell me the best people to go through????

[saara]

Who is the debt with? I have had a mobile phone bill that I couldn't pay and I just rang Telstra who were more than happy to let me pay off the debt in smaller amounts each fortnight. Most companies will do that for you and you won't get a bad credit rating. Even if you go into the debt agreement with another company, you will have a paid default, which is not as bad as an unpaid default. I know someone that has four unpaid defaults and can still get a loan through the bank, so I don't think that you will have a problem, as long as it gets paid :)

[jessgray]

if ypu apply for a loan and have unpaid defaults but have proof you are paying them off that will be taken into account in whether or not you get approved :o im not much help. as my DP is paying off his debts slowly. i have none. MIL is about $6000 or more in debt and my mum is paying off her debt to c/link:laughing:

[Smax]

Hello Bert and Ernie,

I just saw your post randomly on a google search, and thought I might put in my two cents. I work in the financial services industry with a major bank and this question is asked all the time.

A debt agreement works on the idea of having the ability to repay debts, without it killing your quality of life as much. It also usually sets the person back a few years in terms of credit availability because it can be classed as a 'settled' default. Many companies make these promises to help get people these agreements (and a tidy kickback for themselves) but fail to tell their applicants that its like saying "I wont get credit for at least five years as long as you help me now".

You best bet is to talk to the company that the debt stands with. If you are a little unsure about it, let us know the company it is with and I can tell you how they will deal with it.

Sorry to type so much.

Good luck.


-- Matt.

[Sabby]

I storngly agree with Smax as I also work in the finance industry.

Debt agreement is a part 9 which can also be deemed as bankruptcy. You can go through company like Fox Symes but you might think you aer saving but with their fees etc you end up paying the same full amount you owe to the creditors or even maybe more.

You are best just to call the creditors andmore likely they may be able to do something for you. If the operator is not helpful ask to speak to a supervisor and moer likely they will take the time to listen. Just don't over comit with your repayments otherwise if you default it wont be taken lightly..

Good luck

[amyt878]

I posted this question a few posts below...
I don't think it is that easy. If you are like me and you have debts that are in excess of $20000, half of which are credit card debt and you cannot make the repayments (the minimum repayments even) then it is the only solution.
If you have a few monthly debts I'm sure it can be rectified, but, in my situation I don't see how we can get out of the hole without one.

Any suggestions?

[~*clairesmum*~]

my partner is in a det atm.... n we cant pay it back, which we cant so we needd some place that will pay it off for us n we pay a weekly amount back cause most of the dets have told us they will take us to small clams so if anyone can give me a couple of names of some places like that, it owuld be great thanks

[ShadyCharacter]

Amy, I responded to your other post.

I agree with Matt & Sabby. IF it is possible, try to make payment arrangements with your creditors.

If not possible, I would go bankrupt over entering a debt agreement (unless you have a lot of assets) - both have the same effect on your credit file, but with bankruptcy (a non-complicated one), you don't have to pay back any of your creditors, rather than entering a payment agreement.

I would also deal directly with the ITSA, rather than going through a private company like Fox Symes, who put themselves at the top of the creditors list and add a nice fee for themselves in. With the ITSA, its a public service which you don't pay for.

[Sandbagger]

Just googled in after looking at ITSA site and something relevant to what's been said here:
Quote "As from 1 July 2007 ITSA’s Debt Agreement Service will not accept a debt agreement proposal from a person unless that person is a registered trustee, a registered debt agreement administrator or is the administrator of not more than five debt agreements."
And I guess that it's a matter of conscience whether you choose bankruptcy or try to pay your obligations via debt agreement. Also if you do the calculations the payment of the debt agreement over say 3 or 5 years is less than the total you would have paid over the same period with the original debt. This is because the agreement for the debt is negotiated at a lesser amount than actually owed and the 17 - 19% interest ceases immediately the agreement is accepted and yes the administrator's fees are calculated in as well. It is a win win for everyone.

[ddee60]

I have done this and really regret it. You are better off declaring banktrupcy. Debt 9 agreement was done through Fox Symes, you first have to qualify that you earn enough money to do it??? makes you wonder, I had to take on a third job to do it and with five children as a single parent it wasn't easy. The thing is I have now paid it off after three years and am no better off I cant get any sort of loan at all, even though I have a great job a new husband and am in a totally different situation I am still suffering because of it. I know people that went bankrupt after I did what I did and have been able to get loans again and they never had to pay a cent back. I struggled and paid it all back $40k. My advice don't do a Part 9 Agreement. And word of warning NEVER EVER have anything to do with a company called Malouf Enterprises as they say they will help and all they do is take your money and give you your credit file that you could of got for nothing and they charge you $1095. Be warned!!

[Bodelly]

I had a part 9 through fox symes. It was the best decision for me at the time. I had several debts I couldn't pay. They put them all together for me and I paid a set amount weekly.
I haven't even tried applying for a loan or anything since. I don't need to. It is a quick fix but I guess it depends on your situation. I had an ex leave me in a lot of debt. Plus my own debt.