frequently asked questions
What is an Informal Debt Arrangement?
As mentioned above, when your financial problems are shorter-term, negotiating with your creditors for personalised terms of payment may be the best course of action.
This is what is called an ‘informal arrangement’ whereby creditors will be informed of your current financial situation and terms of your payments, loan amounts or freezing interest for a period of time will look to be agreed to in order to provide you with more time, and a more comfortable payment schedule for circumstances.
Things to consider when looking into an Informal Debt Arrangement
There are a few things that the team here at Debt Savvy want you to know about informal arrangements:
To get an informal arrangement with your creditors is not always easy - Being an informal arrangement, not all creditors may agree to it. Further to this, an informal arrangement is not binding.
If one or more of your creditors reject the the offer this could jeopardise the entire informal arrangement.
The more creditors involved, the less likely that an informal arrangement will be successfully executed.