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Are you considering filing for bankruptcy? This should be your last resort since it has serious consequences and besides, you have to exhaust all your options including opting for Australian debt consolidation loans while dealing with unmanageable debt. Alternatives to Bankruptcy You can consult with professional debt management advisors who will actively review your situation and look at various avenues for debt repayment. When you are heavily in debt, you need some expert guidance, advice and support. A good strategy is to use informal debt negotiation process and have a budget plan that will help you pay your debt. A consultant might suggest Australian debt consolidation loans to help schedule affordable and regular payments of loans at lower rates of interest than the ones you are currently paying. Professionals have access to lenders who can help with consolidating bad debts, personal loan debts, credit card debts, car loans etc. Debt Agreements A debt agreement is a legally binding agreement between debtor and creditor which can be facilitated by professional debt management companies. You have to meet several eligibility criteria in order to qualify for debt agreements. Debt agreement is a way out of bankruptcy and is a good option if you can afford part repayment of outstanding debt. It is based on the principle of affordability and allows for permanent reduction in interest payments to creditors. Under debt agreements, it’s possible to place your individual unsecured debts under a single umbrella and make weekly, fortnightly or monthly payments. The benefits are end to legal action and the process of loan recovery from creditors and freezing of interest, besides avoiding bankruptcy. However, debt agreements have serious consequences and have an impact on your credit ratings, so it’s better to get some financial advice before opting for it. Declaring Bankruptcy in Australia If, even after discussions and exploration of avenues, it’s found that bankruptcy might be the only recourse for you, professional debt negotiators can help you with the process to declare bankruptcy. Choose a company that’s registered with Australian Financial Security Authority. As a debtor, you may voluntarily lodge a petition to claim bankruptcy. A creditor may also force bankruptcy on you. For a creditor to do so, you need to have an outstanding debt amounting to 500$ or more. Declaring bankruptcy in Australia has a stigma attached; you will also have to face other consequences of a serious nature. You could end up some or most of your assets in order to clear your outstanding debts and you will be required to make periodic monetary contributions commensurate with your level of income. Bankruptcy ruins your credit history and you will find it very difficult to secure future loans. It also has the potential to impact your current and future employment prospects. When you file for bankruptcy, you will not have complete freedom to travel abroad for up to 3 years. Benefits of Consultation After a consultation, you’ll be in a better position to understand your alternatives, and choose a good strategy that can work for you. There are many reputed debt management companies in Australia that provide judgement free, impartial and friendly service keeping client’s needs and situation in mind. For more information, contact a professional debt negotiating company. Author Bio: Author has many years of experience in content writing. He is the most celebrated and acclaimed author in financial sector. Now he is providing information on Australian debt consolidation loans and declaring bankruptcy in Australia.
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