How It All Works
At Debt Australia we work hard to gain a deep understanding of our client’s situation so that we can deliver the best possible outcome for recovery.
Initial consultation
This is our opportunity to sit down together, either in person or remotely, and have a chat. We get to know you, your needs, and your financial situation.
We strategise
Once we have the important details from you, we will go away to come up with a high level strategy tailored for you, and present it to you. From there, you can then decide if you would like to proceed.
We negotiate
If you give us the go-ahead (good choice!) you will then authorise Debt Australia to represent you as an Authorised Third Party (ATP). We then prepare a detailed proposal for all your creditors and start negotiating to get your debt reduced on your behalf.
In short… it depends.
Every client’s journey is different and their road to financial recovery can take anywhere between a couple of months, up to two years. The length of the journey will be based on whether the debt is secured or unsecured, and how many creditors are involved etc.
By how much can you get my debt reduced?
We can’t really give you a number, however, we usually work towards a settlement of somewhere between $0.10 – $0.20 in the dollar, depending on whether it is secured or unsecured debt. For example, for a credit card debt of $30,000, we’d be aiming for a settlement of somewhere between $3,000 – $6,000. Similarly, for a secured debt of $200,000, we’d be aiming for a settlement of somewhere between $20,000 – $40,000.
Come on, do banks really allow people to get out of debt?
We understand the skepticism, but YES!
1) Believe it or not, it actually costs the banks money to pursue you for outstanding debt. Whether that be via debt collectors chasing down unpaid credit card debt, or the foreclosure department pursuing a Mortgagee In Possession (MIP) sale of your property. The fact is, these processes cost the bank money. The deals we negotiate are win-win for both you, and the bank!
2) Banks have ‘bad debt budgets’. Simply put, banks can write off a certain amount of debt under their ‘bad debt budgets’ each period. The banks can’t write off everyone’s debt under this ‘bad debt budget’, so it is our job to fight for you to ensure your debt gets included in that bad debt allowance.
3) CSR – Banks actually have a Corporate Social Responsibility (CSR) mandate to ensure they are listening to the stories of their customers, some who have been dealt unfathomable blows to their health, career or relationships (in turn impacting their ability to repay debt). It is our job to convey your story to the bank, convincing them that they have a responsibility to empathise with your situation, applying grace and forgiveness where grace and forgiveness is due.
No, there are far greater implications, and the great news is that we may help you avoid bankruptcy. Here at Debt Australia we believe that there are much better options than bankruptcy, that begin with a strategy to ensure you recover financially, good communication with your lender, and a positive relationship with our clients.