Debt Management

If you have less than $10,000 in unsecured debts to one or two creditors it may be most appropriate that you try and negotiate directly with your creditors. You may be able to agree directly with your creditors for your debt to be rescheduled if you can't afford the current repayments. The aim is to negotiate a repayment plan which you can afford but will see the debts paid off within a two to three year period. You need to be careful that the interest does not snow ball so that you end up owing more. If you own your home and you have sufficient equity in the property and the interest rate on your home loan is less (or you have other assets such as shares which can be sold), then it may be more appropriate if you increased your current home loan or you applied for a Consolidation Loan.

If your creditors refuse to reschedule the repayments and you don't have sufficient assets which could be sold or mortgaged, then you may need to consider a Debt Agreement.