When you find yourself with out of control debts, fearing the mail because of demanding letters or unable to sleep at night because you don’t know how you are going to pay your debts, you need to get help debt.
The sooner you seek debt help, the sooner you can address the issues. Ignoring them is not going to make the debt go away and you will probably find yourself slipping further and further into debt as you struggle to pay the bills, and interest on overdue accounts.
Where to go for debt help
There are some practical steps to take to get your finances back on track, to ease your stress and get you on the road to debt recovery.
First, you should talk to the people you owe the money to. For example, if you find yourself unable to pay your electricity bill, you should ring the electricity company and tell them. Many companies have hardship programs that will assist you. The programs usually allow you to work with the company on an affordable repayment plan.
Alternatively, if you your economic situation has changed, for example you have lost your job or been ill and not been able to work – many companies will assist you with a hardship variation. This is where you can postpone your repayments or extend the life of the loan so you can make smaller repayments. This may give you some breathing space to get back on your feet and back to financial control. Note that with mortgage repayments there are maximum amounts allowed for eligibility. So you need to talk to the bank or lending company to work find out whether you are eligible and work through the process with them.
If you find yourself unable to negotiate a hardship variation because you simply cannot afford the repayments, no matter how reduced they are, you are probably facing a debt crisis.
Don’t despair! There is still debt help available.
There are debt administration companies who can help you negotiate a debt consolidation loan, a debt agreement or a personal insolvency agreement – based on your individual circumstances. All of these arrangements have consequences and all of them will require you to pay some or all of the debt.
If none of these options are going to be right for you, you have the option to declare bankruptcy.
Some people fear bankruptcy, but it is a viable option, and it might be the right one for you.
Declaring bankruptcy is not a criminal offence and the option is available because the law recognizes that there are people who simply can’t afford to pay their debts. Did you know that over 23,000 Australians declared bankruptcy last year?
Bankruptcy has a bad reputation because people mistakenly believe that they will lose everything. When you declare bankruptcy, some of your personal property will be protected, including your car, furniture and tools of trade (up to a certain value). It also protects the first $50,000 of your personal annual earnings.
Importantly, declaring bankruptcy will stop your creditors from chasing you for money and it will give you the chance to start over, free from debts.
There are consequences to bankruptcy and it is best to talk to a debt administrator about those consequences so you know exactly what will happen.
Debt Agreement Solutions is a debt administration company that has helped thousands of Australians free themselves from debt. Call them today on 1300 653 962 and get help with your debt.