Debt Settlement Agreement

How To Apply for a Debt Settlement Agreement?

When it comes to snowballing debt, it is important to seek advice and act quickly to get on top of your situation. One such way to do this is to seek a debt settlement agreement in Melbourne, which might allow you to pay a smaller amount than what you owe and negotiate a steady and affordable repayment program.

Understanding what a debt settlement in Melbourne does.

A debt settlement is a legally recognised option for people in debt to consider instead of entering into bankruptcy. Debt settlement agreements can be a great option for approaching debt, but they do not come without consequences, so it is important to understand what those consequences are before considering this as an option.

The positives of debt agreements

The obvious up-side to a debt settlement agreement, is that you might find yourself having to pay less than what you owe, while also being able to halt interest accumulating and impact on your credit rating.

That being said, a debt agreement is an act of bankruptcy. This means that it might go on record permanently and can impact many things in your life after the agreement has finished, including your ability to borrow money, your job prospects or ability to work in certain industries.

So what are the options?

There are many other options that you can consider before signing a debt agreement. This includes:

  • Having a discussion with each of your creditors and asking for more time to pay or to organise a payment plan
  • Offering them a lump sum that you can afford, that is a smaller amount than what is owed
  • Negotiating a lower interest rate on your debt to slow the additional fees

Before making any decisions about your debt you should always seek advice from a qualified financial counsellor, like one of PIPA’s personal insolvency professionals. This will allow you to vett all of your options and make the best possible decision for the situation.

If you need help with debt settlement agreement, contact for further information.