Does this affect my credit rating?
No. If you come to us with a clear credit rating, what we do,
does not affect it. If however you have defaults, we can
negotiate to have these paid out, which is one step closer to
clearing your credit rating.
How is this different to a Debt Agreement
or a Part IX?
It is very different. What CDS does is in no way like any type
of debt agreement. We negotiate to reduce your debt and
pay it out at a discounted amount. The only agreement is
that the creditor accepts a lower payout.
What is a creditor?
Anyone you owe money to. It could be any of the big banks
or a smaller institution that you have a credit facility with.
What information do I need to provide you?
We have all the forms you need to fill in for us to commence
your negotiations. You may be required to provide supporting
documents like bank statements, payslips and mortgage
statements. Every case is different.
What is the benefit of this over a Payment Plan?
The benefit is that your debt is paid and finalised. Once we
have negotiated the debt and it’s paid out, this is the end of
the transaction. No more monthly payments, no more worries.
Are you able to negotiate just one or two creditors?
Yes. We can negotiate one or one hundred debts. It all
depends on the funds you have available.
What are your fees?
Our fees are based on a sliding scale, which means they are
dependant of what we are able to save you. We are happy
to discuss this in more detail when you contact us. If we are
unable to reduce your debt, we dont charge any fees.
What can I do if I don’t have enough money to
payout the debts?
Quite often you have access to money you didn’t think of. If
you have any sort of asset, you can sell it to free up funds.
Have you thought about your boat, caravan, car or your
shares? You may have family or friends that could help. A
tax cheque or inheritance. If you have equity in your home,
it’s a good opportunity for you to refinance and reduce your
interest rate, and use the equity to payout your creditors.
If you don’t have enough to pay anyone at all, we can
refer you to Australian Debt Advisory Centre (ADAC) that
may be able to arrange Payment Plans or Debt Agreements.
How are the debts paid out?
Once we have established an acceptable payout, this is
paid via your usual process, BPay, Cheque or Electronic
Transfer, a payment reciept is forwarded to the creditor and
the closure of the account is requested.
How much can you save me?
This depends on each individual case. If you are in Financial Hardship and you can provide evidence to support this, we have been able to secure discounts of up to 60%. The minimum is usually around 20%.
How does it work?
If you have found the funds to payout your debts, you fill in
our paperwork, we then contact your creditors, submit an
offer and negotiate on your behalf to secure the acceptance
in writing. The debt is paid out and the account is closed.
End of debt!
Do the accounts remain open?
No. If you were to use the account again, the debt would be
reinstated.
Will I be able to apply for credit cards in the future?
You will be able to apply for other credit cards, but not with
the institutions we have negotiated with.