Demystifying Debt Mediation

Debt Mediation is not a scary topic

Unlike Halloween, Debt Mediation is not a scary topic nor is it something to shy away from.

With the current trend of excessive borrowing, keeping up with the Joneses and the unfortunate addition of injury/illnesses, many Australians are finding themselves staring into the emptiness of a deep dark pit when it comes to managing their finances.

Debt Mediation can be the light at the end of the tunnel for these clients. At United Debt Assist, we have helped hundreds of families who have been referred by their trusted broker to mediate on their behalf to secure reductions which has allowed them to refinance and payout their debts.

Common questions we have from brokers and clients include:

Are you Credit Repair? 

No, credit repair is a provider of both credit restoration and debt solutions. UDA is a debt mediation company, where we solely focus on providing life changing mediations to help your clients get back on track financially.

Does UDA offer Personal Insolvency Agreements?

At United Debt Assist, we are a mediation only focused company. A personal insolvency agreement is a legally binding agreement between you and your creditors. At UDA, we work on settlements only, where the customer is not entered into any form of bankruptcy.

Does UDA offer Part IX or Part X options?

No, debt mediation is considered a pre-part IX and part X solution, which can avoid the unwanted issues associated with them. A part IX and X debt agreement involves an appointment of a trustee to negotiate with your creditors to make an offer which may include making a part payment of all your debts using instalments or in a lump sum. UDA is here to prevent the escalation of entering into a PIA.

How does this affect my Credit rating?  

When a default is listed on your credit report, it can remain there for five years. During this time, you may not be able to borrow from a lender as the default demonstrates you have failed to previously pay off a debt. At United Debt assist, all default listed accounts are updated to paid after settlement has occurred. This will in turn have a positive impact on your credit rating.

Ready to begin? United Debt Assist can help you move towards debt freedom.

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