Hi. I am after some advice or any positive experience with debt consolidation companies. I have recently separated from my husband and currently not working. On a single parent pension im finding i am unable to afford current repayments on credit card debt left in my name. I have tried the financial hardship road with one card but after losing my application twice i gave up. I have heard many stories on debt consolidation companies that appear to be helping you but actually make it worse for you. Im at the point of considering declaring bankrupty instead. Has anyone personally consolidated their debt and can recommend a company to use? Im in NSW. Thanks in advance.
3 Replies
You will be worse off. The interest they charge is through the roof because you are considered high risk and are desperate enough to pay it.
I'd follow up on the hardship payments. There will be a hell of a lot more paper work going bankrupt.
I would consider a Part 9 Debt agreement (which is an act of bankruptcy in and of itself but one step before). I personally had an excellent experience with Fox Symes who contact and work with your creditors to freeze interest and work out an affordable repayment for you. They do charge a fee but it's comparatively low and built into the repayments.
Hi,
A positive story? My husband and I had no choice in 2011 and entered into a part 9 debt agreement through Fox Symes. We were marked as partial bankruptcy for a period of 5 years. During that time we could apply for nothing. But why would we want to? We needed a clean slate, a fresh start with finance so we did it and it was honestly the best thing we did. We paid it all back last year. The week after we made the final payment we were discharged and the bad credit mark dropped off our credit file. No one will ever know it was there unless we disclosed it to a bank or company. Which we never would have too. We have since gotten very manageable credit cards, a car loan of $20 000 (again manageable in our current situation) and Internet and mobile plans. We gave all that up when we entered. You don't have too but we wanted too to teach ourselves how to budget again.
If I could go back I would have gone through with it in 2009 but back then uncertainty stopped us. Anyway we are now saving for a business or house loan. Let's just see what the next 5 years has in store for us.
Goodluck with what you choose.