For example, a realistic adjustment to your budget could be to temporarily reduce the amount you spend on clothing and footwear, as it only takes three or four months to make up for your payments. As this is a short-term discount, you can probably accommodate the clothes and shoes you already have. If you`re not sure if this is the best way to manage your arrears, read the range of debt solutions available for various financial circumstances or contact us for free and confidential debt advice. If this sounds scary, feel free to contact us for free and impartial advice on debt and financial assistance. If you are able to pay off your debts, this will almost always be a better option. But if a high lump sum payment puts you in danger of fighting each month to pay for your essentials, a temporary repayment agreement may be the safest choice. If you are late in your payments to creditors and have not yet received advice, we can help. Get free, unbiased online debt advice, available 24 hours a day. Typically, collection companies hold debts for about six months, so if you are more successful, contact a payment agreement in the first one or two months after the collector, especially if you can pay the account quickly.
On the other hand, if you wait a few months before proposing a payment agreement, the collector could refuse or push for a higher payment, because he will soon lose the account. At the end of a telephone conversation with the debtor, during which you renegotiated a repayment agreement, you may want to consider sending an email or letter to the debtor to confirm the terms of the agreed agreement. This minimizes ambiguities or misunderstandings and gives the debtor the opportunity to contact you if they disagree or are not in the dark about one aspect of the agreement or how you recorded it. You must first set a specific budget. This is based on your monthly income, budget expenses and debts. Once you have established a realistic budget, you know how much you can pay to pay unsecured debts after paying your main cost of living. Don`t be pressured to accept a payment amount you can`t afford. 54 For example, see 60 (1) of the Social Security Act (Cth) of 1999, which provides that the payment of social security is absolutely inalienable. Other safeguards are provided in Chapter 12 of the Debt Initation Act 1984, which states that a temperamental order cannot be made without the debtor`s consent if the debtor`s income is obtained exclusively for a pension or other government benefits. If you have room in your budget to be flexible, for example, you can reduce some expenses without being too unrealistic, you could agree to pay a little more. This will help creditors see that you are in the process of cancelling your debts.
This could mean that you are more likely to accept your repayment plan or stop adding additional fees. Take the time to check your budget and future expenses, to find out how much you can afford to pay back each month. Don`t let the collector push you to pay more than you can. Once you have reached an agreement with the collection company, keep abreast of the payments as planned. If you miss a payment, recovery operations can be continued. Example: Confirm renegotiated refund agreements in writing If the collector does not accept your payment agreement, your options are more limited. You can save enough money to pay off the debts in a lump sum. Start by setting aside money each month – as much as you would have paid if you had a payment agreement – until you have saved enough to pay the account. Keep in mind that in the meantime, the collection company will continue its attempts at collection, including filing a complaint against you.