Informal Arrangements

A Private, Low Restriction Path to Debt Relief, Debt consolidation

When the collections calls are coming in and you’re worried you can’t repay all your debts on time, it’s time to consider your options.

While formal options such as filing for Bankruptcy and Formal Debt Agreements offer a lot of benefits, sometimes the disadvantages like public records that affect your credit rating or job eligibility leave you looking for other options.

Sometimes your financial problems are only short-term, so restricting your income or risking the loss of your assets isn’t ideal.

If you can just negotiate a freeze on interest or a different repayment schedule, you’ll be able to get things back on track.

In cases like these, Informal Arrangements are a debt relief option that offers many of the benefits of formal options without the same public records or financial restrictions.

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Is an Informal Arrangement Right for You?

Often, if you can simply negotiate with your creditors to make your repayments more affordable, you’ll be able to get the debt relief you need without the consequences of using more formal debt solutions.

The problem is, negotiating with creditors yourself can be difficult, especially when you’re already dealing with the stress of struggling to make repayments.

It can be hard to talk to your creditors in terms they understand, or help them see your side of the situation.

Informal Arrangements are simply a private agreement between you and your creditors to lower your payments so you can keep paying back your debts in a more affordable way.

Like formal debt solutions such as Formal Debt Agreements and filing for Bankruptcy, Informal Arrangements can help you get debt relief when you’re struggling to make repayments.

Unlike formal debt solutions, there aren’t any public records of your Informal Arrangement, you won’t have to declare your assets and risk losing them, and there are no eligibility requirements that limit your ability to use them.

This makes Informal Arrangements a great option if your financial problems are only short term, you don’t have that much debt, or a public record of financial trouble would affect your ability to keep your job.

Benefits of Informal Arrangements include:

  • They don’t require a good credit record.
  • Collection calls will usually stop.
  • In most cases, all interest is frozen.
  • Not all of your creditors need to agree to an Informal Debt Agreement.
  • They’re not registered on your credit report.
  • They don’t affect your work qualifications or professional licenses.
  • They don’t affect your ability to run a business or travel overseas.
  • You’ll make affordable payments based on a realistic budget.
  • Payments can be made according to your paycheck schedule: weekly, fortnightly, or monthly.
  • There are no limitations on income, property and other asset ownership.
  • One single payment covers all your liabilities.
  • Any debts you have can be included in an Informal Arrangement.
  • There are no eligibility requirements.

Limitations of an Informal Debt Agreement include:

  • You aren’t protected by Australian Government legislation, so creditors may make changes to the terms of your agreement at any time, contact you directly if you fall behind, or take further legal action.
  • Your payments may have to be continually re-negotiated.
  • Your creditors may refuse to negotiate.

How Do Informal Debt Agreements Work?

If you decide an Informal Arrangement is the right option to help you find debt relief, we’ll start by discussing your situation to determine what you can afford to pay, as well as the best way to lower your payments.
We’ll then step in as a mediator and contact all your creditors to inform them of your situation to begin the negotiation process, through our debt negotiation services.
Many creditors, when made aware of your genuine financial difficulties, will help you in many ways like giving you more time to pay, re-negotiating your debt amount, or freezing your interest for a period of time.
However, your Informal Arrangement is not binding on your creditors, so any of them may make changes to the terms, take further legal action, or contact you at any time (letting us know about this can usually resolve the issue).
Though we’ll do our best to avoid it, not all of your creditors may agree to your offer.
If some of your creditors don’t agree while others do, your Informal Arrangement can still go forward, but keep in mind that those who don’t may also continue to take collections action against you, which may jeopardise your entire Arrangement.
This means the more creditors you owe, the more difficult it will be to successfully set up an Informal Arrangement.
If this is the case, you may need to consider other, more formal options such as Formal Debt Agreements or filing for Bankruptcy. To learn more about whether an Informal Arrangement is right for you, see our FAQ below or click here to contact us today!


  • How is an Informal Arrangement different from a Formal Debt Agreement?

    The main difference is that Formal Debt Agreements are controlled by Australia Government legislation while Informal Arrangements are not.

    This means a few things:
    • Informal Arrangements will not appear on any public records, including your credit report, while Formal Debt Agreements will.
    • Informal Arrangements are not binding on all your creditors, meaning they aren’t restricted from taking further legal or collections action against you, and not all of them need to accept your Informal Arrangement (whereas Formal Debt Agreements are binding on all of your creditors if 50% of them agree to the terms).
    • If your job or professional licenses have credit rating requirements, they may be affected by a Formal Debt Agreement.
  • What if a creditor doesn’t accept my Agreement?

    You’ll need to maintain the regular minimum repayments with that creditor.

  • Will an Informal Arrangement affect my credit rating?

    Unlike a Formal Debt Agreement or filing for Bankruptcy, Informal Arrangements are not entered on your credit report.
    As long as you keep up with your repayments according to your arrangement, a default on your debts shouldn’t be recorded either. However, if you miss payments, your creditors may initiate the default process, and any existing defaults on your report will not be removed by an Informal Arrangement.

  • Is there a limit to the amount of debt I can include in my Informal Arrangement?

    As long as your creditors accept your agreement, there is no limit on the amount of debt that can be included. Unlike Formal Debt Agreements, there are no minimum requirements for the amount of debt you owe in order to qualify for an Informal Arrangement.

  • Are there any debts that can’t be included?


    Unlike Formal Debt Agreements which only cover unsecured debts, any debt, including secured and unsecured, business debts, joint debts, debts to friends and relatives or Centrelink payments can be included in your Informal Arrangement as long as your creditors accept the terms.

  • How do I make payments under my Informal Arrangement?

    Typically, a direct debit from your bank account is set up to allow you to make one single payment that covers all the debts included in your Informal Arrangement. These payments are designed to be affordable, and can be made according to your paycheck schedule (weekly, fortnightly, or monthly).

  • Will I be able to travel overseas or run a business?


    Like Formal Debt Agreements, there are no restrictions on your ability to travel abroad or operate a business.

What Happens Now?

If you’re struggling to pay your debts, owe multiple creditors, and are tired of receiving endless collection calls, you have options.

We know exploring those options, filling out the necessary paperwork, and negotiating with your creditors to resolve your debt can be just as stressful as having it in the first place.

That’s why we’re here to provide you with the information and help you need to make the right decision, though our debt negotiation services.

If you’re ready to end the collection calls and finally get free from debt, contact us today to learn whether an Informal Arrangement is right for you.

Contact Us Today for Your Free, No Obligations Consultation

Get Free from Debt Today!