Financial Rights Legal Centre
Call the National Debt Helpline
on 1800 007 007.
Checklist: Debt agreements

Know your rights

A Debt Agreement is not a consolidation loan; it is a form of insolvency! Entering into one is a serious step that cannot be easily undone. Think carefully and get advice from an independent source, not just the person who is trying to sign you up to the agreement!

BEFORE entering a Debt Agreement …

  • Repayment arrangements
  • Negotiate reduced settlements
  • Asking for no interest to be charged for a period of time due to financial hardship

  • People promoting Debt Agreements are usually paid either a commission or significant fees if you enter the agreement (they gain financially from your decision)
  • If you are in financial difficulty there may be other options with less serious consequences. Always consult a free, independent financial counsellor before entering a Debt Agreement (call 1800 007 007)

  • A listing on your credit report
  • Difficulty getting credit (loans) and other services like telecommunications, and
  • A potential impact on your ability to work in some professions and licensed trades

Compare this with a Debt Agreement where you will have to make repayments representing quite a substantial proportion of your debts.

Page last updated: December 2020.