Debt can be absolutely crippling, both financially and emotionally. Nobody is proud of the debt they’ve accumulated, and getting through the arduous process of repaying your debt alone can be more hassle than it’s worth. Nonetheless, debt collectors can be absolutely ruthless and stonehearted when pursuing their clients’ interests, and those riddled with debt often find themselves at their wit’s end, exhausted of possible solutions.
Achieving financial stability in the face of seemingly insurmountable debt issues, however, is an achievable, and commendable, goal. You can stick to a tight budget, go through the cycle of monthly payments and do the best you can alone, but crises can happen. Medical bills can pop up out of nowhere. After all, there’s never a convenient time to get sick or suffer an injury. Your car could break down, or your home might need unforeseen repair. Unexpected expenses are a reality of life, and when you’re trying to pay off your debts, these priorities can lead to missed payments and feelings of despair. Some people consider filing for bankruptcy their only option, but you have more tricks up your sleeve than you think. Learn more about your debt solutions and consider pursuing a debt agreement.
Debt Agreements
A debt agreement, as defined by the Bankruptcy Act of 1966, occurs when you offer a lump sum to your creditor based on what you can afford at the time. While this might just seem like regular old debt repayment, using a debt agreement means that accumulated interest on your debt will freeze, and the sum will not increase inordinately and cost you more in the long run. Additionally, legal action and collection action on unsecured debt will stop altogether once your debt agreement is accepted. You can even renegotiate your payment plan to make it more affordable and manageable, allowing you to pay off your debt legally and stress-free. Consider making a debt agreement to lift the weight of unmanageable debt from your shoulders and save you from the dire consequences of your financial situation.
Bankruptcy
If your debt agreement fails, you can always then file for bankruptcy. Should your assets and means be below the mark considered sustainable under the debt imposed upon you, you’ll be absolved of the need to pay your creditors the amount you can’t afford. In addition to this, you don’t need their approval to go bankrupt, as you do with the debt agreement. Although in most cases your bankruptcy will last for three years, in some cases the period can be extended to eight, allowing you to set your finances in order and leave you with a sustainable, fulfilling means of escaping the prison of debt. There are no income limitations, no debt limitations and no asset limitations imposed upon you if you file for bankruptcy. You do, however, have to remain in Australia if you’re an Australian citizen who files for bankruptcy in the Great Southern Land.
If you’re worried about your debt, you do have options to consider. Debt agreements can be a means of paying your debt off sustainably, while last-resort bankruptcy can allow you to return to a manageable state of affairs in the event that your finances are destroyed by your debt.
