You can appoint a debt management service to represent and assist in managing your financial difficulty.
Debt management services broadly cover services like:
- Providing credit or debt management assistance, including budgeting support.
- Negotiating with creditors, including lenders, and other organisations you owe money to.
- Advising and arranging formal debt agreements under the Bankruptcy Act.
- Repairing or correcting information on credit reports.
However, many of these services charge substantial fees for assistance.
Explore Free Support Options
Before engaging a debt management service consider these free resources:
- Talking to us directly - Our Hardship Care program provides free access to a dedicated team focused on finding solutions for short term or long term financial difficulties.
- Check & Repair Your Credit Record for Free – Visit Equifax for guidance on reviewing and correcting your credit report.
- Get Independent Financial Counselling – Contact the National Debt Helpline at 1800 007 007 or visit www.ndh.org.au for free, confidential support.
- Get free legal help from a community legal service.
- Get out of debt faster – Way Forward is an independent not for profit organisation that provides free help to get you out of debt faster. They can create a budget, establish affordable arrangements with your creditors, and make debt repayments for you. Phone: 1300 045 502
- Visit MoneySmart for information and guidance if you’re in trouble with debt, need credit repair or emergency relief and crisis assistance (urgent need of food, bills, housing and emotional support).
Licencing Requirements for Debt Management Services
Before we can start engaging and communicating with your appointed debt management service, we must confirm that they:
- Are a member of AFCA, and
- Hold an ASIC credit licence with authorisation that covers debt management services.
For more details, visit the ASIC website.
Engaging a Debt Management Service
If you feel a debt management service is the right option for you, we understand and respect your choice - our priority is ensuring you receive the best possible outcome. If we believe your debt management service representative is not acting in your best interests, we will communicate this to you and to your representative. This may happen if your representative:
- Fails to respond to our communications within a reasonable time (normally seven days).
- Lacks the required ASIC licensing.
- Is excluded from lodging complaints with the Australian Financial Complaints Authority (AFCA).
- Makes decisions that are not aligned with your best interests.
- Fails to provide us necessary information to assess your Hardship Care request or complaint.
- Engages in aggressive, intimidating, or threatening behaviour towards our staff.
If we decide not to work with your appointed debt management service, we will contact you and clearly explain the reasons why we have made this decision and suggest alternative solutions.