Good afternoon
I was hoping to get some insight on a part 9 debt agreement.
Has anyone been in one or is currently ? Is it worth it ?
Do they pay your debt off all in one go or do they pay it off as you pay them ?
How long have you waited for your creditors to vote ?
Thank you 😊
3 Replies
The manager of the debt agreement will negotiate with your creditors to pay a portion of your debt.
That portion gets paid off by you but you pay to the manager and they distribute it to your creditors.
So you will pay less over time. But there are some negatives.
Best to speak to a financial counsellor before deciding.
I have been in Part 9 since 2016. I am just 9 payments away from finished! I started at 45k. It wasn't my debt but I couldn't prove it. So, the ones I went through really didn't negotiate. They just asked who I owed, they then confirmed it and then we set a payment plan. You can't apply for credit during the time and afterwards you'll have to slowly rebuild your credit rating. I'm going to see a financial advisor in the next couple of weeks because I want to be able to buy a house. The bank advised me I'll have to have some kind of credit first. By credit card, car loan or something. The debt company has told me once my payments are finished, it's wiped from my file and essentially looks like I have I have never applied for credit. I'm looking forward to moving on passed this phase of my life!
It's definitely worth it if you are struggling to pay all you debt, my partner had to do it 2 years ago and he is nearly debt free. The negotiate with all of you debts to a lesser amount usually wavering fees or interest then once all that's in place the repayments are alot less then what you would usually pay. My partner had nearly $40,000 in debts and after the negotiations he ended up with only $24,000. They also gave him the first 8 weeks of no payments whilst it was all being finalised. He went through Debt Negotiators Australia, they were so easy to deal with and made the whole process so much less stressful!! I've also know of a few other to go through them and they have all had amazing experiences.