After any pros/cons from people who have entered into an informal debt agreement please? My husband and I are considering this because things have gotten out of hand and doesn’t look like we could get a loan to consolidate
After any pros/cons from people who have entered into an informal debt agreement please? My husband and I are considering this because things have gotten out of hand and doesn’t look like we could get a loan to consolidate
By using this site you agree to our terms
2 Replies
Call the National Debt Helpline on 1800 007 007. It's a free service from the government, so independent. They won't try to sell you anything but should be able to go through some options and give advice.
I had thousands of dollars of debt go bad when I was bullied at work so badly that I quit and was unable to work for years. It's been 6 years and I still can't work more than a few hours a week. I was in a very high paying job and had the debt to go with it. That debt has grown huge over the last 6 years, but as I have kept renting all this time and kept a modest car, I have managed to avoid paying the debt.
I'm now completely free of the debt due to the 6 year statute of limitations. You need to check out what it is for you state because in the NT for example, I think it's only 3 years.
Avoiding the debt and not having any means to pay for it isn't exactly the best choice, but it's all I could do.
If you're in a similar position, it is the better option for you because after 6 years they can't chase you for it.
After 5 years of being on your credit record, it disappears whether or not you pay it.
The debt collector had no reason to make me bankrupt because I had nothing for them to take and it would cost them a few thousand dollars to do so.
My credit score has gone from literally 0 back in June, to 724 now, as the debts have dropped off. I have a very small PayPal pay in 4 debt and that's it. I wouldn't have been able to get that just 2 months ago!
In the last 6 years I've survived and I've managed to put $5,000 away in savings in the last couple of years, plus maintain my car to a great standard, pay all my utilities, rent, living expenses etc.
So, I haven't been living lavishly, but, I've got ahead and made use of not paying the debt.
I would feel bad about it but most of the debt was owed to the institution I worked for, that did nothing about the severe bullying that saw 3/10 managers in my area leave in less than 6 months.
I know heaps of people would say this is Terrible advise, but it was literally my only option, unless I wanted to be homeless and pay my debt.
Part 9 debt agreements are just as bad as going bankrupt, if not worse because at least you're discharged from bankruptcy after 3 years.