Informal Debt Arrangement
What is it?
Informal debt arrangements are agreements between you and your creditors that are not bound by legislation or formalised by a contract. With the help of a professional, such as Corporate Guardian, you may be able to negotiate an arrangement with your creditors that will reduce your debt level or make a repayment plan that is mutually beneficial.
What are the benefits?
An informal debt arrangement is an effective, uncomplicated short-term solution if you’re in financial difficulties. You might also end up with a reduced debt with creditors realising they might not be able to recover all monies owed to them. In addition, in many cases creditors won’t contact the credit reporting agencies, which means your credit report will remain clean.
What are the consequences?
Informal agreements are not protected by court order or legislation and rely on creditors’ goodwill, which means creditors could cancel the agreement at any time.
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