Debts can be very stressful and cause unwarranted anxiety and suffering to an individual. Most see no way out and are simply overwhelmed by the gravity of the situation. Many individuals facing financial crisis in Australia even contemplate filing for bankruptcy. But this should not be the case. You are not alone and there are options to consider before making rush decisions which can further aggravate the situation. The very first step to take is to contact a debt management consultant who will be able to guide you through simple debt management plans which have the power to redeem your financial situation.
Talk to your consultant and let him know your situation. This will not only help you relieve some of the stress that you have but also give you alternatives. The consultant will help you negotiate for a Debt Agreement which will help you to avoid bankruptcy. This will enable you to maintain your assets and at the same time have control of your finances while repaying your unsecured debts. This is a sure way that will give you the leeway to get out of this financial distress.
When you secure a debt agreement, you are able to renegotiate with your creditors on the best way for you to repaying your debts to the best of your ability. As opposed to bankruptcy, all your secured debts are not covered in the agreement and this gives you the chance to safeguard your assets as long as you are paying your debts. There are fewer restrictions in the Debt Agreement than in bankruptcy; especially if you are self-employed. It is useful, in that it consolidates all your unsecured debts into one repayment plan over a specified period of time.
In this plan all interests are done away with, no service fees are charged and defaulter fees are non-existent as all these are frozen over the agreement period. It includes all your financial obligations which are converted into one payment plan. This is a useful feature as it frees some of your money and this increases your income levels and gives you control of your finances. The agreement does not tie your income and therefore no claims can be lodged against your income. This also applies to your future income even if you experienced increased income or a windfall in future.
Simple debt management plans are effective when you are struggling to pay unsecured loans or when your debts supersede your earning capacity. It is also applicable to individuals who are living off their credit cards or experiencing missed payments and regular tight budgets. For those with multiple debts a debt consolidation plan is advisable but it has a higher interest rate and should be chosen after much consideration. Therefore, the perfect plan for individuals in financial distress is the debt agreement which not only consolidates all your unsecured debts into one regular payment; but also has no effect over your credit rating. It is not a loan and it will give you the much sought-after relief as you cruise your way to financial freedom.