Debt Agreement Example

John and Jocelyn had been struggling to pay their personal loan and credit card debts for over 12 months. It all started when John was retrenched about 18 months ago and it took 5 months to find another job.

During this period when John was unemployed, Jocelyn’s wage was only enough to cover their basis living expenses. Their creditors did not receive many payments and despite their circumstances, some creditors lodged defaults on their credit rating and threatened legal action including garnishing their wages.

The Problem

John and Jocelyn had been unable to bring their personal loan and credit card accounts up-to date. One creditor threatened to garnishee John’s wages. All their loan accounts were in arrears and they certainly did not have the money to pay them off. Their debts totalled $17,800. Both John and Jocelyn wanted to repay their debts and certainly did not want go bankrupt. A snapshot of their loan accounts showed the following:

Loan Account Interest Rate (%) Balance Monthly Payment
Credit Card 17.50 6,500 195
Credit Card 17.50 8,500 255
Personal Loan 12.50 1,800 210
Store Card 27.00 1,000 30
Total   $17,800 $690

The Solution

Fox Symes assisted John and Jocelyn in the preparation and submission of a Debt Agreement. A Debt Agreement is a formal arrangement between John and Jocelyn and their creditors.

The Debt Agreement would mean they would have to pay approximately $370 per month to their creditors and would be debt free in approximately 4 years. This was a saving of $320 per month. They would also save approximately $7,000 in interest repayments.

With the assistance of Fox Symes, creditors approved the Debt Agreement. Fox Symes is Australia's largest Debt Agreement provider.

(The above is an example only and is not a true account)

Please call us on 1300 361 204 for more information on debt agreements.

More information on Debt Agreements

For Australian residents only

If you are employed and have debts greater than $10,000 please call us on 1300 361 204 or fill in this form. We have live Debt Consultants available to help you now.

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