If you are in a debt contract, you do not have access to credit and therefore you must learn to live from what you earn. The reason most people go into debt is that they spend more than they earn. Credit is not your money — it is money that they borrowed and they have to pay back. Not spending more than you deserve is the basis of financial discipline that can lead to wealth creation. If you apply financial discipline and enter into your debt contract, you can apply the same discipline to create wealth. You need to understand the consequences of a declaration of intent to submit a debtor petition, read the prescribed information page on the consequences of bankruptcy, debt contracts and other alternatives. You fill out 3 forms and file 3 forms with AFSA: a debt contract proposal, a justification and a declaration. The debtor contract manager (or, in some cases, broker) will help fill out the forms, including the details of the proposal you make to your creditors. Forms must be received by AFSA within 14 days of signing. Suppose you have an unsecured debt totalling $35,000 and you can afford to offer $125 per week to your creditors for 260 weeks, or $32,500. If the creditors accept your proposals, they also appoint us with the management of your debt contract and accept that we can keep part of the repayment for the contract management work. The amount we withdraw will be deducted from the $32,500 and it is not an additional amount or extra you pay. If you do not sign the contract through all repayments, you will not be released from your debts or interest due.
Rushika had to face repayments on 3 credit cards and a personal loan. She works, but she is a very young employee and never seems to be able to pay much more than interest on her credit cards. She came across an internet ad for a service called Beat Debt Solutions, which promised to stop the interest on their debts and wrap all her debt repayments in a simple payment. 2- As of June 27, 2019, all debtor agreement managers will also have to set up in an external dispute resolution system: our current administrative costs are 22.73% plus GST. We do not withdraw any other expenses from the debt contract because we believe it is a commercial cost. This fee covers all aspects of managing your debt contract from start to finish. If your creditors accept your debt contract proposal, you will know exactly how much you must pay each week or fourteen days or a month for the duration of your agreement.