Help with

Debt Agreements

Help with Debt Agreements

Are you interested in a debt agreement because you’re struggling with bills and repayments? Do you feel like you have lost control of your finances? Are you afraid to answer the phone or check the letterbox? Financial stress can impact many aspects of life, from work performance to placing strain on relationships. The stress can often be accompanied by feelings of frustration, shame and embarrassment.

The weight of worry can be paralysing, but by taking a few simple steps you can begin to relieve the stress and get back on track.

Debt Agreement Dictionary

Part 9 Debt Agreement
A legally binding contract that is an act of bankruptcy.
Australian Financial Security Authority
AFSA is the government agency that administers the personal insolvency system.
Personal Insolvency
A legal term that describes when a person is unable to pay their debts. Bankruptcy and formal debt agreements are acts of insolvency.

Do any of these statements describe your situation?

  • You regularly miss loan payments
  • You are being contacted by debt collectors
  • You’re afraid of losing your car or home
  • You don’t want to answer the phone or check your letterbox
  • You often borrow money or overuse your credit card
  • After paying your bills, there’s little money left over for living expenses

No matter how dire your situation seems, the good news is that with the right debt payment strategy, you can get back on your feet and begin to regain control.


A formal debt agreement plan can be an effective debt strategy for some people, but it’s important to understand exactly how they work and what the implications are.

A Part 9 Debt Agreement (also known as a Part IX Debt Agreement) is a binding contract between you and your creditors (the people or companies to whom you owe money). It allows you to offer your creditors a reduced settlement based on a repayment amount you can afford. There are strict qualification criteria and the proposal must only include unsecured debts, such as credit cards, telephone bills and utilities. All of your unsecured debts must be included—there are no exceptions.

Should your proposal be accepted, no further interest will be incurred on the included debts. Your repayments will be fixed at a certain amount for a set period of time, usually up to five years. During that period, you will be protected from debt collectors and legal action associated with creditors who are party to the agreement.

It is important to note, however, that there are important consequences.

By proposing a formal debt agreement, the debtor (you) commits an act of bankruptcy. Should the proposal be rejected, creditors can use this information to force you into bankruptcy. Formal debt agreements are registered by the government, which would result in a record of your name appearing on the National Personal Insolvency Index for at least five years and a listing on your credit file for five years (these same consequences occur in bankruptcy). This can impact your ability to access credit.

The bottom-line is that you should not enter into a formal debt agreement without fully understanding the immediate and long-term consequences.

When it comes to money trouble, every situation is different.

The only way to properly assess your circumstances is to analyse your finances in detail and explore all of your options.

MyBudget offers a free, no-obligation debt consultation to members of the public. We will closely examine your debts, bills and other expenses, and carefully take into account your concerns, goals and priorities.

This consultation is free and you are under no obligation sign up as a MyBudget client. By the end of the consultation, you will have a comprehensive, customised budget plan that demonstrates how we may help you to be able to afford to repay your debts. We are generally able to do this through negotiation and good money management in the form of a workable budget.

We specialise in helping people recover from debt stress. We’re here to answer all of your questions and help you design a customised strategy that achieves your specific goals. In a relaxed and confidential setting, one of our budgeting experts will show you how a debt agreement could affect your financial outlook. However, if you do decide that a formal debt agreement is the right solution for you, MyBudget can handle everything and take care of the paperwork. Some functions and staff of MyBudget also trade under the company name MyDebtSolution Pty Ltd, which is a registered debt agreement administrator with the Australian Financial Security Authority (AFSA), and which assists MyBudget clients who are applying for formal debt agreements.

Without careful planning, a formal debt agreement can sometimes increase financial stress. Should cash become short, you may be faced with the prospect of breaking the agreement. Put in this situation, some people find that they may become reliant on payday loans or money from family and friends.

Our aim is to relieve your financial stress whilst ensuring that your problems are addressed at the cause.

Budgeting is the only way to do this.

With a customised, long-range, realistic budget, you can:

  • Gain insights into your financial situation and your options
  • Assess the impact of different debt management strategies
  • Maximise your use of income to pay off your debts sooner
  • Take control of your spending habits
  • Reduce your reliance on credit or loans
  • Save for the things you want and achieve your financial goals

We recognise that the hardest part of budgeting is sticking to it. That’s why we offer to manage your budget for you.

Should you choose to become a MyBudget client, on your behalf, we can:

  • Become the contact point for debt collectors
  • Make your loan and bill payments
  • Help to ensure you always have money for groceries, petrol and other living expenses
  • Set aside money for your savings goals
  • Provide detailed statements that track your spending and project your savings

If you would like us to do so, we can also communicate with your creditors on your behalf. In many instances, we can negotiate payment plans that do not need you to enter into a formal debt agreement. We may be able to help you:

  • Negotiate a break in payments (a moratorium period)
  • Apply for a mortgage or personal loan variation
  • Arrange to pay your debt over a longer period of time at a more affordable rate
  • Get debt collectors off your back so that you can start enjoying life again

However if you decide that a formal debt agreement is right for you, we can take care of all of the paperwork on your behalf.

Book your free, no-obligation consultation today to see if a debt agreement is the right solution for you. Our personal budgeting specialists are professionals when it comes to dealing with debt and personal budgeting.

See how we have helped our clients

These people paid their way out of debt - we could help you too!

Grant & Alisha, MyBudget clients

“Life before MyBudget was very stressful – we didn’t actually do a lot of talking. We had our young son, so most of the time it would have been just me hiding everything from Alicia when it came to our bills and how much money we had in savings. Anything we kind of wanted I would just go and get and by that stage all the savings were gone and that’s when we had to come to MyBudget,”

Grant & Alisha, MyBudget clients

Christy & Karl, MyBudget clients

"Before MyBudget I was probably 20 to 30 thousand dollars in debt scattered across maybe six to seven different companies...Not only are we now debt-free, but we are starting to put money aside for things like a holiday or going away again next year...We [are] looking to buy a house down the line."

Christy & Karl, MyBudget clients

Dan, MyBudget client

“Before MyBudget the debt was really bad, it had gotten to a point where I’d spent too much money on travelling and going out and having a great life and living a lifestyle that really I couldn’t live up to... one day I woke up and went ‘I need to call MyBudget and sort something out’ and once I put something into place it instantly gave me the relief that I needed.”

Dan, MyBudget client

Hear more from our clients

Find out more about MyBudget. Speak to us today. 

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