Debt Relief Australia

68% of Aussies have claimed they have felt the sting from financial stress. With the economy dwindling over the last 3-5 years, Australian's have not had a very good run in the way of money.

Over 2 million people in Australia are living below the poverty line, the percentage of unemployment is at an all time high and the property market is seeing many new home owners fall into the red with negative equity on their homes.

With news like this is it any wonder 7 out of 10 Australians are struggling to keep their heads above water?

As the economy worsened, the personal debt management industry grew. Now instead of waiting until your bets are so bad you can do nothing but declare bankruptcy, there are a number of options to help you out of debt.

Debt Consolidation

Depending on your debts and how far behind you are, you might be able to use a form of Debt Consolidation to get back on top of things.

Debt Refinancing

If you are struggling to make repayments on a single loan, such as your mortgage, you could try to refinance through another lender.

Banks have dropped their interest rates considerably so you are likely to get a cheaper deal now than what you did a few years ago. You could also find a loan which allows you to redraw your repayments or other handy benefits you don't have with your current loan.

Credit Card Debts

If you have several cards all piling up and accumulating interest, you should consider transfering the balance onto a single card.

There are several companies offering great deals on balance transfers where you pay very little or no interest on balance transfers for a certain period of time.

Transfer your debt onto one of these cards and pay it down as much as possible withint the interest free period. This will only work if you stop using your cards.

Debt Consolidation Loan

If you are struggling with several debts, you could take out a consolidation loan. By doing this, you can pay out your existing loans and debts, leaving you with a single regular repayment and a single set of interest and fees.

A consolidation loan could save you considerable money by saving on interest, but you need to ensure the breakage fees won't outweigh the benefits.

Debtstroyer Agreement

If you are struggling with debt because of a dramatic change in circumstances, you might be able to use a Debtstroyer Agreement to get out of debt.

A Debtstroyer Agreement is an informal agreement, which means it isn't monitored by ITSA and therefore won't appear on your credit file.

A Debtstroyer Agreement will negotiate a new repayment schedule with your creditors which reflect terms that are better suited to your situation.

It might allow you to pay out the loan at a reduced rate over a certain period of time, freeze all interest and fees, allow you to pay out your debt in a reduced lump sum payment, or a combination of the above.

A Debt Agreement

A Debt Agreement is very similar to a Debtstroyer Agreement except it is managed by ITSA, Australia's governing insolvency body.

Because it is a formal agreement, it will appear on your credit file, however it's effects aren't as serious or intrusive as those assosiated with Bankruptcy

A Debt Agreement will get the creditors off your back and allow you to pay off your debt in peace.

Bankruptcy

Bankruptcy is the last option you should consider to get out of debt. It has lasting ramifications on your credit file as well as rules and obligations you must adhere to for the term of the bankruptcy.

However if you are suffering from very bad debt stress, you can not possibly see a way out and you have very few assets, declaring bankruptcy might be a good option for you.

For more information on the effects of bankruptcy, click here.

Need More Help?

If you are struggling with debts, the worst thing you can do is nothing. As you have just learned, there are several options available to help you out of debt. However the worse your debt gets, the more limited your options become.

For help with debt in your area, follow the links below.

Debt Relief in Sydney | Debt Relief in Melbourne | Debt Relief in Brisbane | Debt Relief in Perth | Debt Relief in Adelaide | Debt Relief in Darwin | Debt Relief in Canberra | Debt Relief in Hobart

For more information on Debt Relief Australia wide click here.