Informal Payment Arrangements
If you can no longer pay your debt or are struggling to pay it off, an informal payment arrangement may be the best option for you.
An informal payment arrangement is similar to a formal debt agreement, but isn’t considered an act of bankruptcy. It will freeze the interest on your debts and stop creditors from calling. This means your informal payment arrangement will not go on record or negatively affect your credit file. It’s a positive way to settle debt with your creditors, ensuring that everyone is happy with the final outcome.
It also gives you the time and freedom to settle your debts at a reasonable pace – often at a reduced final amount.
You should be aware that informal payment arrangements are only a temporary solution and the terms need to be renegotiated with all of your creditors every 1-6 months and you will need to provide us with regular updates of your financial position.