Once you have made your final contribution towards your Debt Agreement you will become free from all obligations that were the subject of your Debt Agreement. In other words all debts that were disclosed in your Debt Agreement proposal will be finalised and settled in full. This means you will be able to live free again without the burden of debt.
Credit reporting agencies in Australia, like Dun & Bradstreet & Veda Advantage record credit data for Australians. This means that every Australian has a credit file and the data within each file is held for approximately 7 years. Creditors can access these databases to check credit history if you provide them with the authority to check your credit file. So if you have missed payments it is likely that your credit file will have a black mark on it. One disadvantage of a Debt Agreement is that your credit file will be marked with this event and you will be restricted from obtaining credit whilst the Debt Agreement is in place. This restriction may be in place for up to 7 years. However, once your Debt Agreement has been completed, your credit file will be updated to say “finalised”. Creditors will understand from this notation that you have successfully completed your Debt Agreement and have complied with all obligations under the Debt Agreement.
After your Debt Agreement has been completed we recommend that you continue to put aside the same amount you were paying into your Debt Agreement. Remember a Debt Agreement is built around a sustainable budget and if you continue to stick to your budget after your Debt Agreement has finished you will be amazed as to how quickly your savings will mount up!
We have found that our clients have been successful in obtaining fresh credit after successfully completing their Debt Agreement. We will assist in any way we can and will provide you with a certificate of completion, however, we cannot guarantee that you will be successful as it will be up to the financial institution to assess your application. If it assists your application we will also be able to provide you with a statement of all amounts you have paid into your Debt Agreement.