Debt Agreement - What is a Debt Agreement?

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A debt agreement is a government-backed debt solution for those struggling with debt and a better option for those worried about bankruptcy.

 

What is a Debt Agreement?

 

Put simply, a debt agreement is an arrangement made between you, and your creditors (the companies and/or people you owe money) to pay off your debts over a period of time that you can afford. They are usually structured over one to five years and have many benefits for Australians seeking debt relief and an end to what seems like never-ending debt.

 

Is a Debt Agreement the Same as Debt Consolidation?

 

No. In a debt agreement, you are not lent money to pay off your debts – you enter an agreement to pay off your creditors over one to five years at a reduced amount. Although many people see similarities between a debt agreement and debt consolidation, such as having one easy payment to settle all debts, it’s slightly different due to one of the benefits of a debt agreement. With debt consolidation, you are paying 100% of your debt plus any applicable interest. Whereas, with a debt agreement, you can pay a smaller amount and all interest is frozen from the date of lodging the agreement with the government body who administers debt agreements – the Insolvency Trustee Service Australia (ITSA). Learn about the benefits of a debt agreement.

 

 

DEBT AGREEMENT QUICKLINKS

 

Debt Agreements - What is Debt Agreement
Debt Agreements - How to Apply for a Debt Agreement
Debt Agreements - Benefits of a Debt Agreement
Debt Agreements - Examples of Debt Agreements
Debt Agreements - Who Can Enter a Debt Agreement

 

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