No Fix - No Pay Policy
No obligation, Free Consultation Expert Confidential Advice
No obligation assessment
Free assessment 
Fact Sheet - Debt Choices
To download the pdf version of this Debt Choices Fact Sheet click here.
| Debt Options | Benefits | Consequences | |
| Budget ↓ |
Construct an affordable, sustainable budget | *Take control of finances *Improve your ability to repay debts *Have a savings plan |
*Must be honest and reasonable *Requires discipline |
| Debt moratorium ↓ |
Client requests a respite | *Opportunity to regain control of finances | * No legal protection * Limited duration *Not a long term solution |
| Informal Agreement (in writing)/ Payment plan ↓ |
Client calls creditors and makes an arrangement to clear the debt | *Take control of finances *Builds relationships with creditors |
*Must be affordable *Requires discipline *No legal protection |
| Renegotiate loan (UCCC hardship provisions) ↓ |
The UCCC provides the client the right to re-write the loan under certain conditions | *Settlement of debts *Convenience of one repayment plan & should be more affordable *Does not affect the credit rating/legal protection |
*Must be affordable *May not be available depending on the debt levels *May incur further Debt or higher interest |
| Help from family/friends ↓ |
Personal loans etc | *Full/Partial Settlement of debts *Does not affect the credit rating *Little or no interest |
*Relationships breakdown *No guarantee until settled |
| Declaration of Intention to Present a Debtor’s Petition ↓ |
Stay on legal enforcement action for 7 days ie garnishee | *Allows client time to decide course of action | *Act of Bankruptcy *Does not solve the issue *One every 12 months |
| Refinance/consolidation loan ↓ |
To combine all unsecured debts into one debt | *Settlement of debts *Convenience of one repayment plan & should be more affordable *Does not affect the credit rating |
*Eligibility depends on the client’s credit worthiness *May not be available depending on the debt levels *May incur further Debt or higher interest |
| Part IX Debt Agreement ↓ |
Formal agreement b/w debtors and creditors which is an alternative to Bankruptcy | *Released from provable debts *Convenience of one low repayment plan & should be more affordable |
*Act of Bankruptcy *Affects credit rating *Income/Assets and Debt limits |
| Personal Insolvency Agreement (PIA) ↓ |
Formal agreement b/w debtors and creditors which is an alternative to Bankruptcy | *No Income/Assets and Debt thresholds *Flexible solution |
*May be costly to establish (trustee costs) *Act of Bankruptcy *Affects credit rating |
| Bankruptcy | Last resort | *Released from provable debts | *Affects credit rating *Vesting *May affect employment/travel/inheritance and other future events |
To learn more about Debt Fix , contact us now.
Important: This information sheet is not legal advice and should not be interpreted as such. This sheet is meant for information only. Information regarding the subject matter contained within this fact sheet may vary from state to state, therefore in the event that further information is required, legal advice should be sought. Information is current as at 05/03/2006