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Debt Management Plan: A Guide to Curb Your Debt

Posted by Debt Rescue on Aug 26, 2019 11:26:56 AM

Are you experiencing financial hardship? Having difficulties meeting your repayments when they fall due? At Debt Rescue, we’ve created an exclusive Debt Management Plan to help all Australians who are struggling to pay their debts. We understand there is a no one-size-fits-all solution and each clients’ needs are different. This is why we provide a caring and non-judgemental approach while offering positive and realistic solutions if you’re experiencing a financial crisis.

Our Debt Management Plan is designed to help reduce your overall outstanding debt amounts by combining them into one, affordable repayment arrangement based on your budget.

How Does a Debt Management Plan Work?

After engaging Debt Rescue, one of our experienced Case Managers will be assigned to collect information for your application from creditors. Once your creditors know you’re in a Debt Management Plan with us, all harassing phone calls will stop. The information collected from your creditors will help your Case Manager understand your financial circumstances and create a tailored solution for your individual situation. A Debt Management Plan works in the following ways:

1. Provides Flexible Payments

We base our Debt Management Plan around your budget to make sure it’s affordable. This means the repayments are flexible. If your financial circumstances suddenly change, for better or worse, all you need to do is get in touch with us and we can work with you to come to a more affordable repayment schedule.

2. We Take Over Negotiation with Creditors

During the Debt Management Plan process, we negotiate with creditors on your behalf and on your terms, not theirs. This is so a fair outcome can be reached between all parties.

3. Stops Creditor Harassment

All calls and harassment from your creditors will cease once they recognise we are working with you to find a positive solution to your financial situation.

4. Relieves Stress

One of the goals of a Debt management Plan is to relieve the stress of your current financial situation. To do this, we put a solution in place which will not only reduce your debt, but will relieve you of the pressure and strain involved with having unmanageable debt.

How Do You Qualify?

In order to qualify for a Debt Management Plan at Debt Rescue, you need to have more than $10,000 of unsecured debt and be experiencing genuine financial hardship. In other words, you need to be finding it difficult to meet your credit card, bills or unsecured loan repayments. If you are well behind in payments, you may have received a default or action letter on your account. There is no maximum limit on the amount of debt you owe or restrictions on the value of assets you have, or income you earn. These factors will, however, play a role in the type of Debt Management Plan options available for your situation.

Types of Solutions Under a Debt Management Plan

Our professional team understands that everyone’s financial circumstances are different, which is why we offer a range of creditor agreement options under the Debt Management Plan. This ensures the outcome achieved for you is suitable and sustainable. We first assess your financial hardship situation to gain a better understanding of your needs, then provide you with options that enable you to clear your debt and move on with your life.

Debt Agreement

A Part 9 Debt Agreement is a legal and binding arrangement between you and your creditors. Legislated under the Bankruptcy Act 1966, it allows Australians in severe financial distress to honour their creditors, repay their debts and avoid the harsh consequences of Bankruptcy. A Debt Agreement is one of the most popular forms of debt relief which can reduce your debt, pause interest and will generally have debts repaid in 3 to 5 years.

Debtstroyer Agreement

A Debtstroyer Agreement is only available at Debt Rescue, part of Lanyana Finacial Group. It is is a flexible arrangement set up between you and your creditors which allows you to repay your debts without the lasting consequences of other formal debt relief solutions. There is no set structure for a Debtstroyer Agreement, it depends on your creditors, the amount of debt you owe and your individual circumstances. However, it enables you to consolidate your repayments into one easy-to-manage monthly or fortnightly payment. A Debtstroyer agreement also has the advantage of not impacting your credit file as it is not a legislated agreement but a private arrangement with creditors. A Debtstroyer Agreement will reduce your debt and possibly pause interest, providing you with a flexible, tailored solution to clear your debts

Debt Settlement

If you have access to a lump sum which is not sufficient to repay your outstanding debts in full, a Debt Settlement may help. It’s designed to waiver or reduce debt amounts to allow final settlement with your creditors. A Debt Settlement reduces your total debt amount, gets creditors and debt collectors off your back and allows you to avoid Bankruptcy.

Agribusiness Arrangement

Many investors in Agribusiness Managed Investment Schemes (MIS) are now facing a debt crisis due to the collapse of the schemes and the high up-front costs involved. If you have debt collectors hounding you to pay your loan, we can assist with an Agribusiness Arrangement. An Agribusiness Arrangement is a specific arrangement for those caught up in failed agribusiness loan schemes. It can take the form of a long-term payment arrangement or lump sum settlement, depending on your individual circumstances.

Moratorium

If you’re experiencing financial hardship and struggling with unmanageable debts, you may be eligible for a Moratorium. A Moratorium is when your creditor/s allow you to stop making repayments for a specific period of time and a specific reason. Your creditor/s will give you time (usually between 3 to 12 months) to get back on your feet. We negotiate on your behalf with creditors to arrange a Moratorium for both secured and unsecured debts.

Loan Renegotiation

Loan Renegotiation is a renegotiation of current loan terms and conditions to reduce interest and increase the loan term with the ultimate outcome being a reduction in minimum loan repayments. Generally, creditors are accepting of renegotiation under hardship circumstances. So if you have fallen on hard times due to a relationship breakdown, job loss or illness, you have the right to ask for renegotiation of your loan terms.

Get Your Life Back on Track

If you’re struggling financially, it can be difficult to know where to turn. At Debt Rescue, we can assist to help get your finances back on track and alleviate the stress involved. Once you get in touch with our friendly, experienced team, we’ll assess your circumstances over a free, confidential consultation. Your individual financial situation will then determine which type of Debt Management Plan is best for you. Contact Debt Rescue today on 1800 560 568.

Topics: Debt Relief

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