Debt Agreement Calculator for Loan Repayments
No one wants to go bankrupt. It carries serious consequences that will doom your financial future over the short and longer term. This is why many financial advisors will recommend it only as a last option. One of the best alternatives to bankruptcy is entering into Part IX debt agreements with your creditors. The Debt Agreement is an arrangement that is negotiated with creditors and it is governed by government legislation. It is a low-cost alternative that you can take over bankruptcy and is suited for individuals who have lower incomes or who have few assets or no assets at all. It is an option that you can use if your personal debts are below $107,307.20 and you net income is less than $80, 480.40 annually. You can use a debt agreement calculator in order to get information on the amounts that you are likely to pay if you enter into these kinds of negotiated agreements with your creditors.
The debt agreements are generally negotiated by counselors who have the requisite experience when it comes to negotiating these kinds of agreements. These can include the following:
- Private Trustees
- Debt Counsellors
- Debt administrators’
Once the debt agreement has been negotiated, it must be lodged with AFSA or the Australian Financial Security Authority. The authority will subsequently get in touch with your creditors in order to determine if they agree with your debt agreement proposal. If 75% of the dollar value of your debt creditors agrees to the proposal, then it will be binding and you can proceed to execute the debt agreement. You need to have the right information when you are preparing your proposal. For example, you need to have a good estimate of your debt levels. You can estimate your debt using a debt agreement calculator by the Debt Helpline at http://www.debthelpline.com.au/calculators/.
The debt agreement calculator will help you in calculating the amount of repayments that you need to make when you negotiate debt agreements with your creditors. You will know the estimate of the amounts that you need to foot over the course of your loan as well the duration of time that it will take you to clear your debt. Click Debt Helpline for more info.
It is an important tool that will give you very good insights into your credit cards and you will begin to understand why your balances are seemingly not going down in spite of your struggles to clear your debt repayments. All you have to do is enter your debt balance, the amount of your monthly repayments as well as the interest rates which you are paying.
Under income and accommodation, you will input details such as your annual after-tax incomes, centre link income, annual rent and mortgage repayments, annual home insurance payments, annual home maintenance costs, annual land rates, and body corporate costs.
You will also input the annual costs for utilities and personal transport such as gas, electricity, water, phone, mobile, data, health insurance, shopping, registration and insurance, and car loan and cost of fuel. There are also options for kids and unsecured debts amongst other miscellaneous expenses. Based on the comprehensive information that you have provided, the debt agreement calculator will compute your monthly debt repayments and other important financial details such as current debt, monthly repayments, debt agreement repayment, the frequency of repayment, total repaid under debt agreement, the term of debt agreement and debt that is legally written off. It even calculates total savings after the debt agreement. For more information on the debt agreement calculator, check out http://www.debthelpline.com.au/calculators/.