Debt negotiation is the process of partially reducing or in some cases, entirely wiping your current debt. Sounds good doesn’t it, and it is! So how does debt negotiation work?
It’s easy for debts to spiral out of control. It can happen to anyone. From losing your job, to an unexpected car breakdown, to unplanned dental bills, through to divorce. Debt fills up fast until you feel like you’re drowning, but our fully trained and caring debt negotiation specialists can help you get back in control.
Negotiating your debt takes a lot of compromise from your creditors. Some creditors will be unwilling to budge on your debt and will not be open for any negotiation, whereas others might be willing to settle for a lower repayment amount for the sake of receiving money and clearing your name from their books. Others might only be willing to change the terms of your debt, effectively a refinance agreement.
Essentially, the entire debt negotiation process is aimed at giving the borrower a lower amount to pay back on their loan. This can make the debt far more manageable. It is quite common to go through several different stages of negotiations before finally settling on an agreement. If you are looking for a quick fix to reduce debt, this isn’t it.
It takes time and experience to get the results you need and there is a degree of commitment required for the negotiation process. Fortunately, you have the Australian Lending Centre by your side the entire way. Our main aim is always to support our clients so that they end up in a better financial position than they were in before. With over 30 years of financial expertise, our team is experienced at successfully negotiating debts on a client’s behalf.
Here at Australian Lending Centre we engage in debt negotiation on your behalf. You will need to gather the following information and then we can assist with the debt negotiation with your creditors.
If you are in a position where your debts are out of control to the point of seeking for debt negotiation, then it is likely that you have also not been keeping on top of your repayments. If you can’t afford to pay off your debts and miss or make late repayments then your creditors will not hesitate to stamp a default onto your credit file.
Defaults are a way of alerting future lenders that you have not kept up with repayments in the past and consequently, act as a red flag against your name. Having bad credit can make getting loan, and even mobile phone contract approval almost impossible. You can still apply for bad credit loans, but these come with higher interest rates. So, what other solutions are out there?
You can hire credit repair experts to remove negative credit listings such as defaults, black marks, credit enquiries and court judgments in order to clean your credit rating.
With a reduced debt, you can look forwards to a more positive future with time stressing about money and more time living life the way you want to. Whether you use the extra money to make sure you keep on top of your new debt agreement, or perhaps you have enough spare to treat yourself to some of the finer things in life too. Whether that be holidays, new clothes or days out, you will have more freedom after successful debt negotiation.
Whatever you decide to do with your finances, it is important not to fall into the same trap as before and fall behind on repayments otherwise you could face some very severe consequences. We recommend putting together a clear & thorough budget. You can use our simple, interactive online budget planning tool here.