“The most important things in life are family, food, shelter and clothing. When money is tight, put those first.”
It’s important to know that in these situations, there are OPTIONS. Debt Smash specialises in two forms of debt relief covered by Commonwealth Legislation to assist you – Part IX Debt Agreements and Voluntary Bankruptcy.
DEBT AGREEMENTS provide an opportunity to repay your debts in a manageable way with repayments that you can realistically afford. Part lX Debt Agreements were introduced by the Commonwealth Government as a negotiated, legally binding arrangement between you and your creditors. It avoids most of the consequences of bankruptcy. A Debt Administrator like Debt Smash can put an agreement together for you.
VOLUNTARY BANKRUPTCY provides an opportunity for you to be released from your unsecured debts and make a fresh start. It protects your future income and some assets, from your creditors. Bankruptcy should not be feared, it should be seen as a safety net, but also as a last resort. Debt Smash can do this too.
“One of the major impacts on our health in these difficult times can be the stress brought about by unmanageable debt.”
There are benefits AND consequences with whichever action you take, and proper professional consideration must be given to which is the best option.
There are various ways that I can help someone who has more debt than they can handle – these fall into three broad categories:
- Doing a budget – financial pressure often results from not looking after your money carefully enough. Doing a business or household budget is a great idea and a useful starting point in getting debt under control. If I said you need to save some money this week – you might save $50, but if I said you need to save $100 this week, you would save $100 – that’s the power of a budget!
- With creditors before the problem becomes too big to handle. A lot of creditors will listen to reason, and it’s often better not to do this yourself – I know what to say and do, to get the best result
- With creditors once the legal notices start flying about! At this time, it’s actually not too late to save the day
- With banks and lenders to attempt to vary repayment periods or amounts or repayment “holidays”
More Formal Methods
- A Part IX Debt Agreement is an arrangement between the debtor (you) and your creditors, where, if the creditors agree you can pay them over an agreed time, and without incurring further interest or charges. I’ll explain this in more detail when I talk to you, but in the meantime read here.
- Personal Bankruptcy – where it is simply too hard to pay your creditors because you don’t have enough money, or because the creditors won’t say yes to a Part IX Debt Agreement, you can become bankrupt. This is a fairly serious step, but one which may be necessary, and again I’ll explain this further when I see you, but for more information, read here.
What I do NOT offer:
- Investment advice
- Loan Consolidations
- I don’t lend money (If it is a loan you are after try CashSmart – I know these guys and they are about as honest and upstanding as you can get!)
- The Australian Financial Security Authority (AFSA) is a very good source of information for people with debt Problems. Have a look at the following links which lead to AFSA’s web site: