Debt Negotiation And Informal Agreements
Our goal is to help you to reduce debt and save money.
When you choose Get Out Of Debt Today there are a number of ways we can help you reduce or eliminate your debt while avoiding bankruptcy and part 9 debt agreements. For starters we talk to your creditors about an informal debt agreement, which leaves you with no black marks against your credit rating. This form of agreement usually involves us negotiating a lump sum payment with your creditors, getting you a break from paying your debt so you can save and reducing the amount of debt you need to pay by offering the lump sum payment within a certain time period.
This type of agreement is based on how much your creditors perceive that you can pay. If your creditors believe that getting the lump sum is better for them in terms of how much they are likely to get back. So for example, if you owe $20,000, but have been unable to keep up with payments then a lump sum offer of $15,000 would be seen as money that your creditors would likely not get. So this type of action make sense for both of you as your creditors recoup some of their money and you are able to pay back your debt.
Negotiating with your creditors is the best and often only way to get your debt reduced to a more sustainable level. It is important that you have realistic expectations about how much debt will be reduced, as well as being honest in how much you earn and what you will be able to pay back. Most creditors are smart and understand money better than most, so convincing them of how much you are able to pay is easy if you are honest and upfront.
Before you start any negotiations, you should make sure you are in the right mindset, that is, a mindset that wants to get out of debt and is willing to make sacrifices to do so. There are a few reasons you might not want to undertake debt consolidation and they need to be sorted out to make sure that you don’t fall back into bad habits. Have a look at some of the reasons you shouldn’t undertake debt consolidation here. If you think you would be unable to undertake a debt consolidation and negotiation process their are still options for you! Call (02) 9011 7919 today to find out how you can get your financial situation back on the right track.
Debt Consolidation And Mortgage Refinance
Paying off your debts and starting to plan your budget
Now that you have an agreement with your creditors it’s time to start thinking about how you can pay off your debt. Depending on your situation there are a number of ways you can go about this. You now have time to come up with the agreed upon sum, but which way will work best for you. There are two main ways we recommend; debt consolidation and saving to pay of your debt. The second one is obviously the most attractive. If you can, you can use the time to save as much as possible and sell a few assets such as your car, you can then use this to pay off your debts.
Of course this is the dream scenario but often not possible, as debts can be much higher and require more time to pay off. When you are in this situation, it is a good idea to consider debt consolidation. This is where you increase the amount of one of your debts to pay off the rest, so you are basically combining all your debts into one. This means you are able to pay off the debts that have a higher interest rate attached to them and pay off one debt with a lower interest rate such as a home loan.
The easiest way to do this is through a mortgage refinance which has a number of advantages. It allows you to not only consolidate your debts but you can also look for a better rate for the term of your loan. As a home loan usually has the lowest interest rate of all debt it is best to use that if you are looking to consolidate your debt. Of course not everyone has a home loan so you will need to find the right option for you to combine your debts. Get Out Of Debt Today helps you thought this process helping you compare your options and finding the best solution for each individual.
These two options are much more appealing than entering into bankruptcy or a part 9 debt agreement as they can have a long lasting impact on your finances. Even after you have finished paying off your debts, bankruptcy will continue to haunt you with bad credit ratings and black marks against your name for future borrowing. Debt consolidation is a less volatile option and it gives you more control over the payment of your debt.
Budget Planning To Pay Off Debts
We plan your budget with you to pay off your debts as quick as possible.
No matter which option you choose to pay off your debts one thing is for certain, that you will need to plan and budget. As you now have time to organize and pay off your debt, you need to spend it saving your money to either completely pay off your debt or start paying off a large sum that reduces a large portion of the debt. You can’t rely solely on the debt consolidation, as at the end of the day you still need to pay off the debt. Many people enter into debt consolidation without a proper budget which leads to them once again being unable to pay off their debt. That’s where Get Out Of Debt Today steps in, we make sure that once you start down the path of getting out of debt that you never look back.
We sit down with you and plan out a proper budget to reduce your weekly spend and increase your ability to pay off your debt. We offer tailored, personal budgets that ensure you reduce and eventually pay off your debt in the shortest time possible. We have a great team of budgeting experts that help you plan and stick to your budget. Once you start paying off your debt, the stress will wash away and be replaced with relief.
Make sure your budget if flexible, as a flexible budget is a budget you will stick to. You need to consider and plan for any extra or surprise expenses. This might be a medical bill or car repairs. Whatever it is, you need to make sure that it doesn’t completely derail and deter you from your budget. Many people are ok budgeting for a short period but eventually face a snag in the road that sets them back down the same old path. A flexible budget allows for bumps and snags but also keeps you on the path to clearing your debts.
The longer you stick to your budget, the easier it becomes. Especially once you start seeing the fruits of your efforts with your debt starting to go down and the stress of the debt becoming less and less. Start reducing your debt and planning for your future. Another important factor in sticking to your budget is imagining how it will feel to be debt free. You will be able to get on with your life without a dark cloud over your head as well as having the experience of being able to properly budget and save your money, except instead of saving to pay off your debts, you’ll be saving for a holiday or new car.
Making A Budget You Can Stick To
Don’t be discouraged if you’ve been unsuccessful in budgeting before!
Have you tried budgeting and saving before and found it hard to stick to? If your answer is yes, then you are not alone! Many people we speak to have tried budgeting themselves but made it impossible to keep to the budget with unreal expectations which ended up derailing the entire budget. Many people will plan for the short term, overlooking important and unexpected occurrences. Your expenses will never stay the same over the long term, which is why you need a budget that is flexible and comprehensive.
As mentioned above budgeting does get easier and it’s important that you don’t put unrealistic expectations on yourself. Putting the expectation that you will pay off your debt quickly by not spending any money on anything other than bare essentials is unrealistic. You need to plan your budget so you can stick to it. A budget that doesn’t allow for any flexibility is a bad budget. Forget emergency situations, you may need to pay for other things such as birthday presets or a dinner out with the parents. You can’t put extreme expectations on yourself because there will always be something that comes up that you didn’t budget for.
When you sit down with a team member from Get Out Of Debt Today, we make sure to cover all possible and potential costs. We look at you and your life and how that could affect your budget offering up alternative paths for different life situations to ensure you stick to your budget. This flexibility makes it easier to stick to your budget and the long term out loom means that you have an idea of what to expect in your future. We are also members of the ASIC and are fully certified. Call Get Out Of Debt Today for a free consultation on (02) 9011 7919 and find out how we can help you to reduce your debts.