Options Available to You

When you have difficulty paying your debts, you basically have four options:
• You can discuss your difficulties with your creditors and make arrangements with them for dealing your debt. Some creditors may give you more time to pay, or accept a lesser sum. These informal arrangements may not be binding on creditors and may be cancelled if you do not keep up your repayments.
• You can establish a debt agreement with your creditors. This is a legally binding, low cost agreement negotiated between you and your creditors on how you will deal with your debt, designed for debtors with relatively low income and low debt levels.
• You can establish a personal insolvency agreement with your creditors. This is a legally binding agreement for insolvent debtors with higher levels of debt that uses a trustee. It is an expensive option and is designed for business people.
• You can become bankrupt.
If you have credit card debts or other unsecured debts of less than $75,075.00; you own little property; and earn less than $55,306.25 a year after tax, your best option is likely to be a debt agreement.

This website is designed to provide you with information on debt agreements, and to help you along this path if you desire.

The Australian Government created "debt agreements" in January 1997 to help people with difficulties in paying their debts.