Facebook Google+ Blog
Facebook Google+ Blog
 
Free Assessment - Call Now

No obligation assessment

Name*
Contact No.*
Email*
Postcode*
Comments

Free Assessment

 

Fact Sheet - Debt Choices

To download the pdf version of this Debt Choices Fact Sheet click here.

 Debt Options

 

Benefits

Consequences

Budget

Construct an affordable, sustainable budget

*Take control of finances
*Improve your ability to repay debts
*Have a savings plan

*Must be honest and reasonable
*Requires discipline

Debt moratorium

Client requests a respite

*Opportunity to regain control of finances

* No legal protection
* Limited duration
*Not a long term solution

Informal Agreement (in writing)/ Payment plan

Client calls creditors and makes an arrangement to clear the debt

*Take control of finances
*Builds relationships with creditors

*Must be affordable
*Requires discipline
*No legal protection

Renegotiate loan (UCCC hardship provisions)

The UCCC provides the client the right to re-write the loan under certain conditions

*Settlement of debts
*Convenience of one repayment plan & should be more affordable
*Does not affect the credit rating/legal protection

*Must be affordable
*May not be available depending on the debt levels
*May incur further Debt or higher interest

 

Help from family/friends

Personal loans etc

*Full/Partial Settlement of debts
*Does not affect the credit rating
*Little or no interest

 

*Relationships breakdown
*No guarantee until settled

Declaration of Intention to Present a Debtor’s Petition

Stay on legal enforcement action for 7 days ie garnishee

*Allows client time to decide course of action

*Act of Bankruptcy
*Does not solve the issue
*One every 12 months

Refinance/consolidation loan

To combine all unsecured debts into one debt

*Settlement of debts
*Convenience of one repayment plan & should be more affordable
*Does not affect the credit rating

*Eligibility depends on the client’s credit worthiness
*May not be available depending on the debt levels
*May incur further Debt or higher interest

Part IX Debt Agreement

Formal agreement b/w debtors and creditors which is an alternative to Bankruptcy

*Released from provable debts
*Convenience of one low repayment plan & should be more affordable

*Act of Bankruptcy
*Affects credit rating
*Income/Assets and Debt limits

Personal Insolvency Agreement (PIA)

Formal agreement b/w debtors and creditors which is an alternative to Bankruptcy

*No Income/Assets and Debt thresholds
*Flexible solution

*May  be costly to establish (trustee costs)
*Act of Bankruptcy
*Affects credit rating

Bankruptcy

Last resort

*Released from provable debts

*Affects credit rating
*Vesting
*May affect employment/travel/inheritance and other future events

To learn more about Debt Fix , contact us now.

Important: This information sheet is not legal advice and should not be interpreted as such. This sheet is meant for information only. Information regarding the subject matter contained within this fact sheet may vary from state to state, therefore in the event that further information is required, legal advice should be sought. Information is current as at 05/03/2006

Debt Fix Reviews