Constant calls from creditors can feel overwhelming. If you’re falling behind on repayments, an informal arrangement may help reduce pressure by setting up a clear, agreed repayment plan with your creditors. Informal arrangements don’t appear on your credit file in the same way debt agreements and bankruptcy does, but it may still have financial consequences depending on your individual situation. Not only will it free you from those harassing phone calls; it can help you reduce repayments or interest – depending on creditor agreement.
How It Works
An informal payment arrangement is a way to negotiate and repay your debts without utilising formal options such as a debt agreement or bankruptcy. It can pause the interest on your debts and stop creditors from calling. It’s a positive way to settle debt with creditors and gives you the time and freedom to clear your debts at a reasonable pace. The goal of an informal arrangement is to reach an agreement that works for both you and your creditors — but results can vary depending on your circumstances and their willingness to cooperate.
What We Do
We work directly with your creditors to determine a realistic repayment plan that everyone can agree to. From there, you’ll make regular repayments based on what’s been agreed — and we’ll support you throughout the process. However, the duration and final outcome will depend on your financial situation and how creditors respond. Creditors may also agree to pause all future interest, consolidate your outstanding amounts and accept a reduced debt settlement, allowing you to pay a single, manageable rate until your debts are finalised.
