What does debt mediation involve?
Debt mediation involves our specialist team at United Debt Assist negotiating with your creditors to reduce your debts. The negotiated debt amount is paid as a one-off lump sum, and the balance of your debts is written off. This can help to restore your credit score, with existing defaults being updated to paid in full.
How to begin
To qualify for debt mediation, you must have access to funds to clear your debts. You may have any of the following, but are finding it hard to pay all of your creditors in full.
We can help if you
- Sold an asset
- Refinanced your home loan
- Inherited money
- Taken a loan from family or friends
- Have some savings, but not enough to get on top of your debts
If you are
- Experiencing financial hardship due to a decrease in income and/or an increase in expenses
- Having to forfeit basic life expenses such as rent and food to pay your bills or debt repayments
- Poor budgeting skills & over reliance on credit
- Failed or closed business venture
- Family or personal illness or injury
- Marriage or relationship breakdown
- Circumstances arising from domestic violence
- Family death
- Loss of employment or decreased income
FREQUENTLY ASKED QUESTIONS
We’re here to help.
How is debt mediation different to a debt agreement?
Debt mediation requires that the applicant has some form of money available to pay off the debt once the debt has been negotiated on into a reduced amount. A debt agreement is an agreement between your creditors where you pay off the debt over time rather than in-full. This is better suited to applicants who don’t have funds available for one lump sum payment.
What is a creditor?
A creditor is often a bank or institution you owe money to. This can include telecommunications and utilities companies.
Does debt mediation affect my credit score?
No it doesn’t. The state of your credit score upon coming to United Debt Assist will not change, as our activities will not affect it. If you already have default listings, we can negotiate on these and have their status updated to paid in full.
Why would my creditors agree to reduce my debt?
An experienced debt mediator such as United Debt Assist can justify to your creditors that your current financial position means you are unable to maintain your financial obligations. Receiving a lump sum payment now, rather than having to wait a period of time to receive what they are owed is motivation for your creditors to settle your debts now. While the lump sum payment will be less than the amount of outstanding debt, it’s likely that this will still be a profit to your creditor, and through mediation, we can agree on an amount and the creditor will receive payment they potentially night not otherwise have done.
How much can you reduce my debt by?
Everyone’s situation is different, but our specialist team at United Debt Assist have in some cases been able to reduce debt amounts by up to 100%. The story behind your debt is important to the debt reduction amount possible – if you have been through financial hardship due to redundancy, illness or death, you may be able to see a significantly reduced debt load with United Debt Assist.
What is the difference between a debt mediation, debt negotiation and debt settlement company?
They all mean the same thing. We refer to the process as debt mediation, where we negotiate your debt with your creditors to achieve a reduced debt settlement.
Can I negotiate a debt settlement on my own in Australia?
You can, but it’s likely you won’t achieve the same debt reduction rates as you would with a team of experienced debt mediators.
How can debt mediation help to refinance my mortgage?
Debt mediation can reduce the amounts you owe to each of your creditors, which in turn can assist with the success of your mortgage refinance application.
How can debt mediation help me get a loan?
Reducing your debts with United Debt Assist may help you to meet the lending criteria on your next loan.
Can you negotiate a lower payoff amount on a credit card?
As long as there is a legitimate need for a lower payoff, we are able to mediate with your creditors to settle for a lower payment in full.