An informal agreement may be best if you have low debt levels (less than $8,000) or you have 1 or 2 creditors only.
When you have more than 2 creditors it may become difficult to reach a solution with all creditors. Even if you reach agreement with these creditors initially, an informal agreement is not legally binding on the creditors. This means that the creditors may refuse to accept your informal proposal at any time (even if you make the payments you agreed) and demand full repayment of their debt.
In our experience if you have more than 2 creditors or owe more than $8,000 (collectively) an informal agreement may be less successful.
If you have more than $8,000 in debt and have more than 2 creditors then a formal debt agreement may be a more successful method to solve your debt problems.
Contact Us Today on 1800 98 10 70 if you wish to explore a formal debt agreement.
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