Bad Debt can have an impact on every aspect of your life. It can leave you feeling isolated from your friends, family and colleagues, physically exhausted and incredibly stressed. It can even manifest and cause depression and anxiety. when you fall into bad debt, it is common to feel as though there is no way out. You might not be able to see a light at the end of the tunnel, but there is hope, no matter how bad your debt is.
Debt Rescue is one of Australia’s leading Debt Relief Solution providers. We speak with hundreds of Aussies each week who are looking for bad debt help and thanks to a wide range of options, we are able to give it to them. If you feel like you are in bad debt and want some help, here are some things you can do to get your life back on track.
How to tell if you need bad debt help
Often, people don’t ask for help with their debts until it is too late. The sooner you realise you need to do something to take control of your debt, the more options are available to you. Here are some of the early warning signs that you are in need of bad debt help.
- Your creditors are harassing you for payment
- You avoid social occasions with family and friends because you are worried about money
- You are losing sleep over money problems
- You feel depressed or anxious about paying back your debts
- You don’t know when your bills are due
- You are spending more than you are earning
If you are experiencing any of these things, you are headed down the road to bad debt and you need to act now to get your finances under control.
The initial steps to get help for bad debt
The first thing to do when you are in bad debt is to ask for help. Debt has a stigma attached to it which makes people who experience bad debt ashamed and embarrassed about their situation, but thousands of Aussies are struggling, just like you. In fact, so many people experience bad debt, creditors like banks and lending companies often have hardship agreements available to help.
Usually when you need bad debt help, you have creditors harassing you for payment. The last person you want to speak to is your creditor about your debt, but they are the best place to turn. By simply talking to your creditors about your situation, you might be able to enter a hardship arrangement where you are given a few months breathing room from your repayments. The terms of the hardship agreement could include freezing interest or reducing or stopping repayments temporarily. This could give you enough time to catch your breath, sort out your financial situation with a budget and get back on track.
Bad Debt Help for people struggling with repayments
If you don’t qualify for a hardship agreement with your bank there are a number of other options available to help. These include Debt Consolidation, informal debt agreements such as Debtstroyer or a Formal Part 9 Debt Agreement.
If you have a mortgage, you might be able to refinance your home and use the equity from your home loan to repay your debts.
A Debstroyer Agreement is available for people who have fallen into debt through a sudden change in circumstances. If you are unable to work through illness or injury, approaching retirement or have been through a relationship breakdown and are no longer able to afford your bills, Debtstroyer can help.
Debtstroyer Agreements are informal agreements between you and your creditors outlining a new payment arrangement you can afford. It is arranged by professional debt negotiators and can be a repayment arrangement over a few years or a lump sum repayment of your debt.
Part 9 Debt Agreement
A Part 9 Debt Agreement is a legally binding agreement between you and your creditors which is regulated through a government body, AFSA. Entering into a Debt Agreement will freeze your interest and reduce your overall debt amount, however it is an act of bankruptcy so it will have an impact on your credit file.
Avoid Bankruptcy with Bad Debt Help
If you are experiencing bad debt, the best thing you can do is ask for help. A case manager at Debt Rescue can walk through your situation and help you figure out exactly what you need to do to get out of debt. By acting early enough, you will be able to avoid declaring bankruptcy and its long lasting consequences.