Reduce Your Debt

Gain Control

Scared about how you'll ever pay off your credit cards? Our experts can show you the way forward.

Debt Reduction

Just Budget Debt Support

How Does Debt Reduction Work?

Just Budget Has the solution

Debt Reduction Australia

What Is Debt Reduction?

Simply put debt reduction means lowering your debt. The key aim of debt reduction at Just Budget is to make our client’s monthly payments more affordable for a period of time to allow them to regain financial control.

Debt reduction can take many forms, including lower monthly repayments and in some cases, interest can be lowered or even frozen for a period of time. This can add up to significant savings.

If you are not in a position to be able to keep on top of debt repayments then this is where Just Budget comes in. We expertly negotiate with your creditors to find a solution that works for everyone. Our #1 goal is always to put our customers back in control of their finances. We do this through our specialist team of debt negotiation experts.

Our focus? To make your life easier

Debt reduction can be a delicate operation that changes from case to case. There is significant Australian laws that protect people who are suffering financial hardship. These laws can be used to help people get out of debt more easily.

However, if debt negotiation isn’t conducted properly, credit providers can become very unhelpful and the debt reduction process can become costly and time-consuming, not to mention stressful.

Debt reduction at Just Budget is focused on making your life easier, stress-free and more affordable. With the help of our free online budget planner, we can help you easily find a repayment plan that fits within your budget.

This is why Just Budget’s approach will be different for each of our clients. We aim to help our clients get back in control of their finances and reach the best outcome possible.

Lower you debt through debt reduction

Benefits of Debt Reduction

An Example of Debt Reduction

Lucy was a single mother struggling with her many debts. She had been in between jobs for three months, which had left huge debts on her credit cards. Because of her financial situation, she was unable to secure a debt consolidation loan

Even worse, she was unable to make her monthly repayments on her credit cards, meaning that her debts kept building and building. 

Lucy started receiving intimidating letters and harassing phone calls from her credit providers and debt collectors, adding further to her stress.

Lucy called Just Budget and together they worked out a realistic budget that Lucy could afford. Just Budget then called Lucy’s creditors and explained her situation to them. 

Using their knowledge of Australian legislation and their debt negotiation skills, Just Budget helped to significantly reduce Lucy’s monthly payments for six months which allowed Lucy the time she needed to get back in control of her situation.  

Lucy’s credit file was also preserved during this period.

After Just Budget has negotiated your debts under the hardship legislation, we then use our debt mediation services to help you continue to stay in control of your finances.

The Debt Reduction Process

The process of debt reduction is simple:

Budget Planner

Work out your budget in detail to determine your income vs your expenditure. This helps highlights your ability to pay your creditors.

Debt Reduction proposal

We will work alongside you to write out your personally tailored informal debt reduction proposal, detailing what you can afford to pay.

Debt Negotiation

We negotiate with creditors on your behalf to find terms you both agree upon. As specialists in dealing with creditors, you are in safe hands.

Stress-Free Future

If creditors accept then you can expect a stress-free process with your current debts reduced or frozen to a point that is manageable.

Debt Reduction Frequently Asked Questions

When it comes to debt reduction, every situation is completely different. If approved, you could save thousands of dollars per year, have your debt frozen for a specified period of time or in some cases, completely wiped depending on your individual circumstance.

The only way to find out how much debt reduction could save you is by taking 30 seconds to enquire and let one of our loan specialists talk through your situation with you.

The initial enquiry and application for debt reduction with Just Budget does not affect your credit rating.

If you cannot currently afford repayments then it is likely that your credit score has already been negatively affected. In the long run you can expect your credit score to improve since you will be more able to repay your debts, lowering your chance of defaulting on repayments.

However, negotiating a reduced debt plan with your creditors will inevitably have an affect on your credit score since you are unable to abide by the terms of the initially agreed agreement. This suggests that you are not a responsible lender.

Being unable to afford your repayments and requiring a debt reduction means that your creditors will not receive the full amount of money back that was agreed upon.

Your credit score reflects your borrowing habits and how responsible you are with your money. For example, if you default on a loan by missing repayments then this will be reflected on your credit file. Similarly, if you go through the process of debt reduction, this will also show up on your credit file.

With this being said; debt reduction is still a fantastic opportunity if you cannot afford to pay your debts. Even if it means having a reduced credit score, you will have extra money from the debt which was reduced that you can put towards other things rather than applying for further finance.

After your debt reduction plan commences, you will no longer need to pay your original creditors. This means no more multiple, confusing payments at different times each month and no more harassing calls.

Instead, your entire debt will be rolled into one manageable package with 1 repayment schedule on your terms. This saves you time and makes life easier as you will only have 1 creditor to pay going forwards rather than multiple.


Debt reduction also applies to credit card debt. This form of debt settlement involves having your credit cards paid off at a lower rate than initially agreed.

This new debt is then rolled onto a plan on your terms.

While the process of debt reduction, as the name suggests, is designed to reduce your debt, it does cost money.

The fee will vary depending upon your amount of debt and your personal circumstances. However, in the grand scheme of things, this fee should be a fraction of how much you could save with debt reduction.