This Factsheet looks at ways to negotiate with your creditor if you can’t afford your repayments or you can’t afford to pay off your debt in one lump sum.
If you have a debt that you cannot afford to pay, you can try to negotiate with the creditor. You cannot force a creditor to negotiate, but many will. There are a number of different methods of payment as an alternative to paying the full amount in a ‘lump sum’ (in one complete payment).
This Factsheet will provide information on the following issues:
- Payment by installments;
- Postponement of payments;
- A reduced lump sum;
- Waiving/writing off debt;
- Hardship variations to loans under the National Credit Code;
- Consolidation loans; and
- Pro-rata payments.
Access the full PDF below for a complete guide to negotiating with creditors.
This resource is under review following recent changes in the law. It may not be current and accurate.