How a debt management plan works
- We look at the whole picture. Your income, your living costs and every debt you owe.
- We work out what you can genuinely afford. Not what the creditors want, but what leaves you enough to live on.
- We negotiate. We contact each creditor and propose a payment arrangement. Where possible we ask for interest and fees to be frozen or reduced.
- You make one payment. You pay us one regular amount, and we distribute it to your creditors under the agreed arrangements.
- We stay in your corner. Creditors deal with us, and we keep you updated until the plan is finished.
Who a DMP suits
- People with several unsecured debts such as credit cards, personal loans, buy now pay later and utility bills
- People who can afford a regular payment, but not the amounts creditors are asking for
- People who want to avoid formal options like a debt agreement or bankruptcy
Things to know before you start
A DMP is an informal arrangement. Creditors are not legally required to accept it, although most will consider a reasonable, affordable offer. Interest freezes are requested, not guaranteed. Arrangements may be noted on your credit file, and plans commonly run for several years depending on the size of the debt. Secured debts such as a home loan or car loan usually need to be handled separately.
A DMP is different from a formal debt agreement under the Bankruptcy Act. A debt agreement is an act of bankruptcy and is recorded on the National Personal Insolvency Index. A DMP is not.
How our fees work
Before we charge for any service, we give you a written Credit Quote that sets out exactly what we will do and what it costs. You decide whether to go ahead. Nothing is charged for the first conversation, and we never guarantee a particular outcome, because the result always depends on the facts on your file and the response of your creditors.
Free options are always available
You can contact your lender directly, ask for a free copy of your credit report, lodge a free complaint with Australian Financial Complaints Authority (AFCA), or speak with a free, independent financial counsellor through the National Debt Helpline (1800 007 007). We are happy to tell you if a free option suits your situation better than a paid service.