We care about creating maintainable debt solutions that can help you to restore your financial health.
An Informal Debt Agreement can help you to manage your debts without falling further behind. With United Debt Assist, we can help you to navigate through your debts before they spiral out of control.
- Negotiate to have your interest frozen and fees stopped
- Stop debt collection and creditor calls
- Set up a manageable repayment plan that suits you and your budget
- Unlike a formal debt agreement or insolvency, an informal agreement won’t be listed on your credit file.
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
- Looking to avoid your professional license being impacted by bankruptcy
- 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.
What are the restrictions of an Informal Agreement?
There are a few things to be aware of before entering into an Informal Debt Agreement. Creditors may reject your proposal or choose not to negotiate, and your repayments may have to be adjusted or re-negotiated overtime. An Informal Agreement isn’t a legally binding contract, therefore creditors can change the terms at any time. If you fall behind on your repayments, your creditors can void the agreement and they may take further legal action.
How is debt mediation different to an Informal 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. An Informal 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’s the difference between Informal & Formal Debt Agreements?
An Informal Debt Agreement is a less severe alternative to a Formal Debt Agreement. Formal Debt Agreements (also known as a Part Nine Debt Agreement) are an act of bankruptcy, meaning a creditor can apply to take you to court to make you bankrupt if the formal debt agreement fails. A Formal Debt Agreement is listed on your credit file for 5+ years, and can make it difficult for you to access credit for a period of time. We do not offer Formal Agreements at United Debt Assist.
What types of debt can be included in an Informal Debt Agreement?
Any unsecured debt can be included in your Informal Agreement.
How long does an Informal Debt Agreement last?
The term of your Informal Debt Agreement depends on how much debt you have and what you can afford. Once we have all of your information, we will provide you with an expected term that you can agree on before we proceed.
Does an Informal Debt Agreement include debt negotiation?
Yes. We will look to negotiate with your creditors to reduce any fees and interest to put you in the best position to restore your financial health.
Once the Agreement is set, will you still be available to offer me ongoing support?
Yes, we will closely monitor your file and continue to discuss your payment plan with your creditors for the life of your Informal Agreement. Should your circumstances change or you require an update on your file, simply reach out to us and we will be able to help.