Ezy Debt Solutions-Australia wide.

Feeling Hardship, we can help relieve your stress.

If your debts are getting out of control or you are struggling to make ends meet, it's important to act quickly. Help is available, we can negotiate repayment arrangements with your creditors, explain your debt options and help you apply for a hardship variation which can give you some relief for up to 3 months whilst you get yourself back on track.

Here are some practical steps to ease the stress and get your finances back on track.

Ask for our help
We will communicate to your credit provider
We will apply for a hardship variation on your behalf

We talk to your credit provider.

If you are finding it hard to keep up with utility bills (electricity, gas, phone or water), credit cards or loan repayments, the first step is to talk with us so we can let your credit or service provider know you are experiencing financial hardship. Taking action straight away can stop a small problem from becoming a big one.

Many credit or service provider companies have hardship officers which we work with in assessing your situation and work out what compromise is available. Whether the hardship officers agree to a Hardship Variation will depend on why you are having difficulty making payments and how long you think your financial problems will continue.

We can also help you work out an affordable payment plan such as paying bills in instalments and advocating to Hardship officers the altering of your loan repayments temporarily.

When to apply for a Hardship Variation.

If you can't keep up with repayments on your credit cards or loans (for example, because of illness, unemployment or changed financial circumstances), then we will ask your credit provider for a 'hardship variation'.

For a home loan, depending on when you took it out there are different thresholds (maximum amounts allowed) for accessing a hardship variation, If you entered into a contract after February 2013, you can apply for a financial hardship variation no matter how much you owe.

We will negotiate for the best outcome.

We contact your lender or credit provider's 'hardship officer' by phone or in writing issuing the details of your loan (account name and number, and the amount you pay each week/fortnight/month) and negotiate a temporal change of your loan repayments because you are experiencing hardship (as set out in section 72 of the National Consumer Credit Code)

We will explain and or argue why you are having difficulties making payments, express how long your financial problems will continue and how much you can afford to currently repay.

When you apply for a hardship variation, the credit provider must respond to our request in writing within 21 days letting you know the outcome of your hardship request (unless you need to provide them with more information).

If the credit provider asks you for more information to help them make a decision, you must give this to them within 21 days.

Remember that credit providers have a legal obligation to respond if you are having problems paying your loans.

How we can change your repayment plan.

Here are some of the options we could discuss with your lender:

Extend your loan period, so you make smaller repayments over a longer period.

Postpone your repayments for an agreed period.

Extend your loan period and postpone your repayments for an agreed period.

A reduction to interest only payments

A freeze on interest (however creditors are not obliged to provide this).

When negotiating a repayment plan, make sure you can afford it. There is no point agreeing to an amount that is too high for you to pay.

After successful negotiation if you find down the track you can't maintain the new arrangement, tell us or your credit provider straight away.

It is important to keep paying as much as you can afford, even if it is not as much as the credit provider is asking for.

What are the benefits of Hardship Arrangements?

The main benefit is it will give you short term relief from your debts. Because you've approached your creditors, you haven’t breached your contract and you will generally not be defaulted, so your credit history will not be damaged.

Disadvantages of Hardship Arrangements

You will have to pay your debts back in the end. If your creditors don’t freeze the interest, this will extend the term of your agreement and you may end up repaying more.

Hardship Arrangements are not permanent they are subject to review at regular intervals.

If your new financial situation is permanent you should look at other options like an Informal Agreement, Personal Insolvency Agreement, Debt Agreement or Bankruptcy.

YES,

WE CAN NEGOTIATE

DEBTS

Informal Arrangement Option-

An Informal Arrangement is a debt management solution where EZY Debt Solutions can negotiate a compromise arrangement with your creditors. It is different to financial hardship as it is not a formally recognized process, hence the term informal.

However, most creditors will discuss informal arrangement options when your circumstances are genuine and you provide a clear outline of how you are going to get back on track.

Informal arrangements are generally negotiated for a 3 to 6 month period, but depending on your circumstances can be negotiated for longer. Under an informal arrangement you can negotiate for lower monthly payments, reduction in interest, an increase in the time to pay or come to a settlement arrangement.

It is an effective short-term solution-

Such an informal arrangement can be a good short-term solution if you find yourself in financial difficulties. Often circumstances result in people having difficulties meeting their monthly obligations for only a couple of months.

Through an informal agreement it is possible to arrange a period in which your creditors accept a reduced payment rate under the proviso that you will return to your original payment schedule.

This is an uncomplicated way of bridging a gap that you otherwise would have had trouble negotiating. It also helps to keep in contact with your creditors to show that you are committed to repaying your debts. The better your relationship with your creditors the easier life will tend to be.

You may end up with a reduced debt-

Often creditors will acknowledge that their chance of recovering all the money lent to you will not be possible.

By offering an informal agreement you are demonstrating that you are committed to repaying your debts.

However circumstances might dictate that it is impossible for you to repay all of the debt. In this situation creditors would rather recover some of their money than none at all, which might be the case if you declare bankruptcy.

As a consequence they may be willing to accept a reduce debt level through negotiation.

Ultimately an informal arrangement is much cheaper for creditors than pursuing a debtor through court proceeding or engaging a debt collection agency, so it may be mutually beneficial for you and your creditors.

An informal arrangement is an arrangement that exclusively involves you and your creditors, there is no involvement from outside bodies.

Nor is the arrangement governed by legislation, hence the informality of the agreement. As there are no other parties involved and there is no court involvement, the payment schedule that you develop is known as an informal arrangement.

In many cases, the informal arrangement does not cover the entire debt and is only a temporary arrangement.

As an example, if you are:

Unemployed
Unable to work because of illness or injury
Earning less money

If you experience a change in circumstances such as this, maintaining repayments of your debts can become very difficult. In this situation an informal arrangement can be a very useful option for you to consider.

An example of an arrangement would be to pay a reduced rate for a specified period of time or in lieu of you finding a new job or getting well.

An informal arrangement will only be binding on those creditors who are a party to it and have agreed in writing to the arrangement. Usually the arrangement will be cancelled if you don't keep up your repayments.

The drawbacks of informal agreements.

Informal Arrangements are not protected by court order or legislation, as a consequence they rely almost exclusively on your creditors' goodwill and they could theoretically cancel the agreement at any time. However, it is unlikely that a creditor would do this if you stick to the terms agreed upon in the arrangement.

So as with most debt relief plans, informal arrangements require your dedication and have no value if you are unwilling to stick to the plan.

Informal arrangements can be very effective as they are mutually beneficial to both parties and they can assist you in easing your debt burden.

Interim Relief from Creditors Option-

If you are being pressured by a creditor but need some time to think about your available options, we can give a signed "Declaration of Intention to Present a Debtor's Petition" form to AFSA.

For a period of 21 days, your creditors or the bailiff or the sheriff cannot take action to court regarding the debts.

A debtor doesn't have to go bankrupt at the end of the 21 days.

If you do not take any action such as entering into a Part IX Debt Agreement or a Part X Personal Insolvency Agreement or file a petition to become bankrupt after the

21 day period, creditors may continue to pursue you for recovery of debts or may take steps to bankrupt you.

Giving a Declaration is an 'Act of Bankruptcy'. A creditor can use this to apply to the Federal Court or Federal Circuit Court for a Sequestration (Bankruptcy) Order. You are allowed only one Declaration every 12 months