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Debt
Agreement
A Debt Agreement is an agreement between
yourself and your creditors whereby the creditors agree to accept a partial
payment only as a settlement of your outstanding account.
Once a Debt Agreement is made between you and
your creditors it is binding on all involved.
If you are genuinely unable to pay your debts as they fall due, you may be
able to come to an informal agreement with your creditors to pay a reduced
amount, postpone some repayments, reduce the interest rate and/or reduce
your repayments.
Debt Agreements can be either Formal or
Informal.
An Informal arrangement has all the advantages of a Formal Debt Agreement,
without the need to pay an administrator. An informal agreement will affect
your ability to get more credit from you existing credit providers, at least
in the short term.
However this is cheaper and less serious than
bankruptcy. |
