Break the Cycle of Bad Debt

Debt and financial hardship can be so stressful and debilitating that it’s difficult to know where to turn and how to get back on track. The task is made more difficult by the myriad of debt solution providers promoting different products and many of them touting quick fix solutions. Some providers of bad debt consolidation services even claim to be able to cut your debts in half. Remember, if a claim sounds too good to be true, it probably is. Examine all offers carefully.

When discussing your finances, especially debt solutions, its important for you to deal with a reputable company that you can trust—one that has your best interests at heart and is able to examine all of your options. MyBudget is here to help you make an educated decision about whether a bad debt consolidation solution is the right solution for you.

Is a bad debt consolidation my only option?

There are commonly two types of bad debt consolidation strategies: bad debt consolidation loans and formal debt agreements, such as a Part 9 Debt Agreement. It’s important to understand that the consequences of a formal debt agreement are not dissimilar to bankruptcy. A formal debt agreement will appear on your credit file for seven years and your name will be listed on the National Personal Insolvency Index forever.

The idea behind a bad debt consolidation loan is to consolidate one or more debts at a higher rate of interest into a lower interest rate loan. This works well in some circumstances, but bad debt consolidation loans can be difficult to obtain and costly to service. In fact, we regularly see situations where bad debt consolidation loans have led to further credit damage.

Bad debt consolidation is only one option. MyBudget examines all of your options.

What makes MyBudget different is that we examine all of the possible debt solutions that apply to your situation. In 97 percent of cases, we are able to help our clients reduce their debt without pursuing bad debt consolidation.

At a free consultation we will assess your financial situation in detail. As well as analysing your income and expenses, we’ll closely examine your debt situation. We’ll explain all of the different options available to you and provide you with a clear debt reduction strategy that suits your lifestyle and your financial goals. Bad debt consolidation may or may not be the right option for you.

Even if you decide not to proceed with MyBudget, your customised budget plan and our recommendations are yours to keep for free.

Break the cycle of bad debt with MyBudget’s help.

As well as recommend a range of debt solutions for you, a MyBudget personal budgeting specialist will help to create a budget for you which is tailored to achieve your financial goals.

The budgets we prepare are true financial plans. As well as taking your household and daily living expenses into account, your budget plan will detail your finances over a 12 month period. Working closely with you, we’ll be able to determine exactly how much income you have available to repay your debts and on what terms. The result will be a fully-customized, sustainable debt reduction plan.

MyBudget can also help you to relieve your debt stress by resolving outstanding debts and renegotiating payment arrangements with your creditors. Our vast experience in debt negotiation means that we know what sorts of terms are achievable. In many instances, we can negotiate for interest rate and repayment reductions or even arrange for payments to cease for a period of time while you get back on track. Informal debt arrangements can have significant advantages over formal debt agreements because they help to avoid the consequences of personal insolvency.

MyBudget clients experience incredible levels of success because we do the heavy lifting for them. We manage our clients’ money on their behalf by ensuring that their bills are paid on time, creditors are taken care of, savings are deposited and, most importantly, that there’s always enough money to meet living and lifestyle expenses. Think of MyBudget as your dedicated personal trainer. But instead of simply designing a program, we do the hard work for you.

If you choose to pursue bad debt consolidation, MyBudget can administer a formal debt agreement for you or help to facilitate a bad debt consolidation loan.

MyBudget takes the stress away so that you can focus on living. Spend time with your family, enjoy a hobby again, relax and take pleasure in the knowledge that you’ve taken control of your finances.

MyBudget helped Kelly and Mark get on top of their finances without bad debt consolidation. We can help you, too.

Kelly and Mark were feeling stressed and overwhelmed by their debt. There was never enough money to cover all of their bills and repayments. With MyBudget’s help they were able to increase their mortgage payment, pay off their car loan and have savings in the bank after only 12 months, without needing bad debt consolidation.