There’s a saying, “ And it does. It’s extremely stressful. But there are ways to turn things around.
If you’re facing debts you can’t pay, depending on your situation and circumstances there may be a number of ways you can get rid of your debts and get on with your life.
Option 1: Informal Debt Negotiation
One option is to arrange an informal debt negotiation with your creditors. We can do this for you. Our skilled debt negotiators will work with them to tailor a plan for you to repay your debt over time with monthly payments you can afford. We may even be able to negotiate a reduced interest rate for you.
An informal debt negotiation can help you avoid bankruptcy or a formal debt agreement. And once you’ve made your final payment, you’ll be debt free and ready to get on with your life.
Option 2: Debt Agreement
Another option is to arrange a debt agreement. This is where you make a deal with your creditor to accept an amount you can afford, which you then pay back in regular payments.
This will effectively freeze your debts and give you time to get back on your financial feet. And if you pay the amount as a lump sum, you’ll pay even less.
A debt agreement is a binding agreement administered under the Bankruptcy Act, and to be eligible you must meet a number of conditions.
Option 3: Bankruptcy
If you’re struggling with unmanageable debt, bankruptcy may be a viable option. It will end the barrage of phone calls from debt collectors and other parties, stop the debt spiral, and wipe the slate clean of past financial mistakes.
You’ll be given a fresh start so you can get on with your life instead of lying awake wondering how you’ll make ends meet. And because you no longer have to pay any debts, it can improve your cash flow position immediately.
Option 4: Personal Insolvency Agreement
However, you may face a number of obligations and restrictions both during and after your bankruptcy.
The last option we may suggest is a personal insolvency agreement. This is a legally binding arrangement where you agree to pay your creditors a reduced amount over a specific time.
One advantage of these agreements is their flexibility. For example, the agreement with your creditor could include paying them a lump sum or regular instalments, giving them assets or the proceeds of asset sales, or a combination of these.
Where to next?
Whatever your financial situation, ReVIVE can help. We’ll give you down-to-earth, practical knowledge and expertise to help you choose the best way to deal with your debt and get your life back on track.
So talk to us today, and say goodbye to unmanageable debt.