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What is a Debt Management Plan?

If you’re struggling to pay down your debts, a Debt Management Plan (DMP) may be for you. Our DMP is designed to help reduce your overall outstanding debt amounts by combining them into one affordable repayment schedule based on your budget.

Flexible Payments

A Debt Management Plan is a flexible arrangement which provides you with a viable alternative to Bankruptcy and avoids the serious consequences and limitations it carries.

Negotiation with Creditors

During the DMP process, we negotiate with creditors on your behalf and on your terms – not theirs, so you can reach a fair outcome between all parties.

Stops Creditor Harassment

All calls and harassment from creditors will cease once they recognise we are working with you to find a positive solution to your financial situation.

Australia-Wide Service

Our Debt Management Plan is offered Australia-wide. No matter where you are, if you’re struggling we can help reduce your debts and get your finances back on track.

How does it work?

After engaging Debt Rescue, one of our experienced Case Managers will be assigned to collect information for your application from creditors. Once your creditors know you’re on a DMP, all harassing phone calls will stop. The information collected from your creditors will help your Case Manager understand your financial circumstances and create a tailored solution for your individual situation.

In order to qualify for a DMP, all you have to do is be experiencing financial hardship. In other words, you just need to be struggling to meet your creditor repayments as they fall due. There are no restrictions on the amount of debt you owe, value in assets you have or income you earn. These factors only play a role in the type of DMP recommended for your situation as a DMP can be tailored for anyone struggling with debt.

3 Easy Steps

  • Get in touch with us at Debt Rescue
  • Your Case Manager will collect information from your creditors
  • We will provide you with a tailored debt relief solution

Example

With our Debt Management Plan, you could write off up to 80% of your debt and be debt free in 3 years. Pay what is affordable for a set period of time and creditors will write off the remaining debts.

The below example shows how you could benefit from a DMP.

EXAMPLE UNSECURED DEBTS

Debt: $20,000Creditors: 3

WAS PAYING:

$520

per month

NOW PAYING:

$150

per month

Total debt written off:$11,000

TOTAL DEBT WRITE OFF

55%

In this example, the DMP client was able to get 55% of their debts written off, $11,000 of the client's total debt was written off at the end of their DMP.

Our clients creditors will need to agree to the DMP, and regular payments will be based on individual circumstances. Credit rating will be affected. Fees will be added to the DMP, but not charged additionally, and are subject to individual circumstances.

"My experience once being handed over to Debt Rescue has been easy and I've been updated frequently on progress and next steps. Very happy with the service"

Types of Debt Management Plans

Our professional team understands each person’s circumstances are different, which is why we offer a range of creditor agreement options under the Debt Management Plan. This ensures the outcome achieved for you is suitable and sustainable. A summary of our Debt Management options:

Debt Agreement

A Part 9 Debt Agreement is a legal and binding agreement with your creditors. A Debt Agreement outlines a new payment arrangement which will reduce your debts, pause your interest, reduce your payment amounts and generally last between 3 to 5 years.

Debtstroyer Agreement

A Debtstroyer Agreement (Informal Agreement) aims to reduce repayments and pause or reduce interest on your debts. It is a private arrangement directly between you and your creditors to ensure your debts are manageable based on your budget.

Debt Settlement

If you have access to a lump sum which is not sufficient to repay your outstanding debts in full, a Debt Settlement may help. It is designed to waiver or reduce debt amounts to allow final settlement with your creditors.

Agribusiness

An Agribusiness arrangement is a specific arrangement for those caught up in failed agribusiness loan schemes. It can take the form of a long-term payment arrangement or lump sum settlement, depending on your individual circumstances.

Moratorium

A Moratorium is a short term arrangement with creditors (secured or unsecured) which pauses or significantly reduces repayments and interest over a period of 3 to 12 months.

Loan Renegotiation

Loan Renegotiation is a renegotiation of current loan terms and conditions to reduce interest, increase the loan term with ultimate outcome being a reduction in the minimum loan repayments.

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