Informal Agreements

At Debt Buddy, we understand that financial challenges can sometimes overwhelm individuals and businesses alike. That’s why we offer a range of Informal Agreements designed to help you regain control of your finances while considering crucial factors such as interest rate, fees and charges, and loan term. Our experienced team works closely with clients across Australia to negotiate and structure flexible arrangements with creditors, allowing you to manage your debt in a way that suits your unique financial situation, all while avoiding the formalities of bankruptcy.

Money Management Plan
A Money Management Plan is designed to help you regain control over your financial situation. We work with individuals and businesses across Australia, offering personalised plans that encompass budgeting, debt consolidation, and savings strategies.

Financial Hardship Assistance
Our Financial Hardship Assistance will help you navigate difficult financial situations with ease. Whether you’re facing job loss, unexpected medical expenses, or other financial setbacks, Debt Buddy’s experienced team is dedicated to helping you find the best way forward.

Business Tax Debt
Business Tax Debt assistance helps businesses across Australia effectively manage and alleviate their tax-related financial burdens. Whether you’re struggling with outstanding tax payments, dealing with ATO (Australian Taxation Office) enquiries, or facing other tax-related challenges, Debt Buddy’s experienced team is here to help.

FAQs About Informal Agreements

An informal agreement is a simple way for you to come to an arrangement between you and your unsecured creditors.

Informal Agreements can be a flexible way to come to an arrangement to settle debts without becoming bankrupt or committing an act of bankruptcy.

  • One payment in line with your pay cycle that you can afford.
  • Better control over your debt.
  • Expert assistance to negotiate with your creditors.
  • No more creditor’s calling.

It depends on the agreement we negotiate with your creditors, but it’s usually between 3 to 5 years. Contact Debt Buddy to discuss how long the informal agreement will last.

You can lodge an informal agreement proposal through DB if you:

  • Have unsecured debts more than a set amount.
  • Can afford the proposed payments.

Informal agreements are not:

  • consolidation loans or agreements to borrow money.
  • able to release you from all types of debts – some debts you will still need to pay. Such as child support and some traffic fines. You must continue to pay your  secured debts such as home loans and car loans.
  1. Gather the requested documentation pay slips, bank statement, credit card statements etc.
  2. We will prepare your paperwork. You need to read, understand, sign and send back to Debt Buddy for us to lodge with your creditors.
  3. You will commence making payments to us (as agreed) and we will pay your creditors for you.

If creditors included in your informal agreement continue calling you, refer them to your case manager on 1800 332 877 and tell them you have an informal  agreement with Debt Buddy. We advise your creditors to contact us and not you.

  • Your creditors may suspend or cancel your credit facilities while continuing to charge you interest and fees.
  • We will send a copy of your informal agreement to your creditors and negotiate with them on your behalf.
  • We will ask your creditors to write off future interest and, in some instances, accept a discounted amount in satisfaction of their debt.
  • Your creditors will respond with a yes, no or counter our offer.
  • We will work with you to ensure we are setting up an arrangement based on what we both agree is affordable
  • Provide information: you need to provide the information we request making sure it is accurate and current. It is critical that you are honest and disclose all relevant information about your situation.
  • Read, understand & sign paperwork: To propose an Informal Agreement you will need to read, understand and sign a number of documents which are legally binding. You will need to read through all documents carefully and thoroughly, so you are fully informed.

You should notify us immediately so we can discuss the options you have depending on your circumstances. We are here to help.

  •  Through a direct debit form your nominated bank account.
  • In line with your pay cycle (weekly, fortnightly or monthly).
  • At the agreed amount.

We do not notify your employer. It Is unlikely an informal agreement will affect your employment.

If your creditors accept your informal agreement proposal you can achieve one manageable payment for your informal agreement that is based on affordability with no interest, no card servicing fees, no over limit fees or penalty fees (subject to creditor approval).

Improved control of your finances, you will know exactly how much to pay each week, fortnight or month. Knowing when your agreement will be finalised.

If you complete your informal agreement, you will become unsecure debt free.

It is up to each one of your creditors. There is no guarantee your credit report won’t be negatively affected.

There are two fees in total.

REMINDER: Your payments are based on affordability, and we will not pressure you to make a payment you cannot afford.

FEE #1

  • Debt Buddy set up fee: This is for all the work involved in setting up your application. This is paid by installments (normally over 10 weeks) that are based on affordability and not refundable.

FEE #2

  • Debt Buddy Administration Fee: Debt Buddy will collect this fee as a percentage of each informal agreement payment you make only when and if your Informal Agreement is accepted. This fee is included in your informal agreement payment amount. It is an amount
    withheld to administer your informal agreement over the duration of your proposal.

Please do not hesitate to contact our office if you have any questions or would like any further explanation.

You cannot ask too many questions.

Debt Buddy is Your Trusted Financial Partner

Peter Curtis, with a deep passion for helping individuals and businesses regain control of their finances, embarked on his journey in the debt relief industry in 2007. Witnessing the profound impact debt relief had on people’s lives, he was determined to make a difference. Peter’s mission is to assist people from various backgrounds and situations, guiding them towards debt freedom and financial stability.

After five years with a prominent firm, Peter founded Debt Buddy in 2014, establishing a boutique practice that offers a wider range of services to cater to diverse needs. Over the past 16 years, Peter has tirelessly built the knowledge and experience to navigate both simple and complex debt scenarios, helping countless individuals and businesses regain their financial footing.

At Debt Buddy, we are committed to providing professional guidance and support to our clients. We understand the importance of transparency, and we believe in empowering you with the knowledge to make informed decisions about your financial future. Our goal is to help you achieve financial freedom. 

Secure Your Financial Future Today

Are you ready to take control of your finances, optimise your loans, and secure a brighter financial future?
Contact Debt Buddy today to learn more about our debt services and how we can tailor them to your unique needs.

Our team is here to assist you every step of the way, helping you make informed decisions about interest rates, loan repayments, and the benefit of refinancing. Let’s work together to achieve your financial goals and secure a better tomorrow.