Part 9 Debt Agreement Get back in control of your debts

debt agreement

Spot the Difference: Debt Management and Part 9 Debt Agreement

The primary difference between debt management and a Part 9 Debt Agreement is that debt management is an informal debt arrangement. It is therefore not considered to be associated with the bankruptcy act. While the Part 9 Debt Agreement can be a relatively good alternative for many people in particular cases, it is important to realise that you can achieve very similar results by going with an informal debt arrangement.

That is primarily because an informal debt management option does not considerably affect your credit file, unlike a Part 9 Debt Agreement. It is of significant bearing that you know that the Part 9 agreement is associated with the Bankruptcy Act and on top of that, a majority of credit lenders and financial institutions see little or no difference between the two.

The Credit Impact of a Part 9 Debt Agreement

What this means is that when you file for a Part 9 Debt Agreement and it gets listed on your credit file, it could last up to 5 whole years. This could make things overly difficult for you when it comes to borrowing, as you will not be easily given any form of credit. Surprisingly, there are so many people who opt for this form of debt arrangement not knowing the full consequences of their decision. You could end up being scrutinised for two years before even being considered to be released from the Part 9 Debt Agreement and still not get any form of loan until the mark vanishes from your credit file.

If you opt for an informal debt agreement, there will be a listing of the option on your credit file, however this is not considered as a negative listing by most lenders. This means that you can still opt for a viable credit plan with debt management. Just Budget’s debt management system is designed to preserve your credit rating, meaning you should still be able to maintain and improve your credit rating.

As you can see, the difference between the two debt agreement plans is paramount. One could be financially harrowing, while the other allows you considerable freedom. Now that the difference is clear, let’s proceed towards learning more about the benefits of a Just Budget’s debt management plan.

Call Just Budget now on 1300 795 775 or enquire online.

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Benefits of a Good Debt Management Program

Allows You the Time You Need To Pay Off Your Debt

Perhaps the biggest advantage of Just Budget’s debt management system is that it creates a debt solution based on your circumstances. We will negotiate with your creditors to make them understand your situation and in most cases this means that our client’s have more time to pay back their debts.

You Can Manage the Monthly Payments

Our debt management program can simplify all of your debts into one single monthly payment. This amount is based on your current situation and how much your can realistically afford.

Flexibility of Debt Management

Due to the fact that a debt management program does not legally bind you to any conditions, it gives you a degree of flexibility. For example, if you experience a pay cut or rising expenses that make it difficult for you to pay your monthly payment, we can help you re-evaluate your situation and further negotiate with your creditors.


Call Just Budget for a FREE consultation that will NOT impact your credit file! 1300 795 775 or enquire online.


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