Debt negotiation in Australia

Real Credit Repairers provides a way out for people in Australia who are struggling financially through a process called debt negotiation. This service involves working directly with your creditors in order to pay off an unsecured debt for less than what you actually owe. It is very useful for people who cannot pay everything and want to avoid bankruptcy.

We have successfully resolved cases for many clients throughout Australia. We will handle all communications with your creditors and debt collectors so that you never have to deal with them personally. If you're ready to start, enquire now through our contact form or call 1800 953 563.

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What is debt negotiation and how does it work?

The journey begins when we reach out to your creditor, proposing either a reduced lump sum or a feasible payment plan that they accept as the complete resolution of your debt. Once the settlement is agreed upon or paid, the creditor cannot pursue any remaining balance, effectively closing the account.

This is a real alternative to bankruptcy for individuals experiencing significant financial problems. Since creditors would prefer getting a part of the debt instead of losing everything, there is a possibility of reaching a good bargain at a relatively low price. We will conduct the negotiations, explaining your financial situation to them.

This process is tailored to fit individual needs. It depends upon whether the creditor accepts and to what degree; it varies according to the policy of the creditors and the specific situation of the debt and yourself. The debt could be resolved in one shot in some cases, but in others, it might require a certain repayment program.

Which debts can RCR negotiate?

Debt negotiation is most effective with unsecured debts, which don't involve assets a lender can seize. In these situations, creditors often prefer to accept a reduced payment instead of pursuing the entire balance.

We regularly negotiate:

Credit card debt
Personal loans and payday loans
Store cards and buy-now-pay-later accounts
Overdue utility or phone bills
Unsecured business loans
Debt collection accounts
Legal or solicitor bills
Old rental arrears

Secured debts work differently. Take, for instance, a loan that is provided on the basis of a mortgage or car financing, in which case the loan is secured by something of value, meaning that the bank can seize it if you do not make your payments.

If you have secured debt, we’re here to guide you, offering advice and connecting you with the appropriate resources. However, our primary focus is on alleviating the burden of unsecured debts, which often cause the greatest financial strain.

Who is debt negotiation right for?

Creditors typically agree to lower a debt only when they have a valid reason to doubt that you can repay the entire amount. This approach is most helpful for individuals truly struggling financially, rather than those who could settle their debts but opt not to.

If you can relate to any of the following, debt negotiation could be right for you:

You have missed the deadline for payment on a credit card, personal loan, store account or utility bill
A difficult situation caused by unemployment, sickness, relationship breakdown, etc., and has affected your ability to pay
You are unable to manage your unsecured debt with your present salary
You are being threatened by collection agencies or legal proceedings
The prospect of bankruptcy is looming over your head

While there isn't a set income or debt level required for qualification, what truly counts is the seriousness of your financial situation and our ability to present a genuine offer to your creditors. We believe in transparency; debt negotiation may not be the right fit for every individual. We thoroughly evaluate your situation with honesty before proceeding. If we believe a different approach would be more beneficial for you, we'll let you know.

How much does debt negotiation cost with Real Credit Repairers?

20%

of the amount we save you — nothing more

70%

average debt reduction (an average,
not a guarantee)

We take a straightforward approach to our fees: we charge 20% of the amount we save you, nothing more. For instance, if your debt is $1,000 and we manage to save you $500, our fee would be $100. This way, you know exactly what you're paying for since our fee is directly linked to the savings we achieve for you.

Our process is centred on delivering tangible results. To get started, there's a small, non-refundable fee. After that, you only pay our success fee if we manage to reduce your debt. This ensures that we only benefit if you do. Unlike some debt negotiators who offer vague promises, we are transparent with our calculations.

On average, we can reduce debt by as much as 70%, but it's important to note that this is an average and not a guarantee. Each situation is unique, so results will vary. However, we promise clear pricing with no hidden charges and an honest assessment of what might be possible before you decide to proceed.

Curious to find out how much we can help you save? Enquire now through our contact form or call 1800 953 563.

How Real Credit Repairers negotiates your debt, step by step

Usually, cases settle between 4 to 12 weeks, with clients often noticing improvements within 30 to 45 days. The timeline largely hinges on how swiftly your creditor replies. We ensure you're always updated, so you never have to worry about the progress. This is the usual process:

Initial consultation

First, we take a comprehensive look at your financial situation. We'll examine your debts, identify your creditors, and determine what you can feasibly pay. This step helps us decide whether negotiating is truly the best approach for you. If it turns out not to be, we'll be upfront about it and guide you towards a more suitable solution.

Strategy and creditor engagement

The next step involves crafting an offer with settlement amounts or repayment plans that are likely to be accepted. We then reach out to your creditor directly to present your case. Our team manages the negotiations, sparing you from having to deal with calls personally.

Settlement in writing

When a creditor agrees to new terms, they provide written confirmation of the reduced balance or revised payment plan. After you fulfil the payment or finalise the agreement, the debt is settled, and the creditor loses the right to seek any remaining amount.

How debt negotiation affects your credit file

Negotiating your debt generally won't have a lasting negative impact on your credit score. While there might be a temporary mark on your record during the settlement process, the significant harm often occurs once debt collectors take over the account. By settling, you can prevent further damage.

Aside from simply lowering your debt, reaching a settlement halts persistent calls from creditors and collection agencies. It also reduces your outstanding balances, allowing your credit score to gradually improve. Over time, a settled account will show as resolved, offering a path to financial stability and recovery.

Choosing a credit repair firm can make a significant difference in your financial journey. After you settle your debts, we assist you in rebuilding your credit profile. If a settled account still affects your credit report, we explore options like removing a credit default or removing a credit black mark. This approach not only resolves your debt but also improves your credit history.

If your unsecured debts have outgrown what you can pay, we can help by negotiating your debts to a more manageable level and putting you on a clear path to financial freedom. Our initial consultation comes with no strings attached, and as an Australian-owned business, we're here to support you every step of the way.

Enquire now via our contact form or call 1800 945 140 to get started. If you'd rather understand your file first, you can begin with a free credit report and consult and decide from there.

Book your free credit report review

Frequently asked questions

It certainly can if you really can't manage to make those payments. Having your debts lowered without having to file for bankruptcy can be an excellent solution for certain people, but not for others. The first thing we do is evaluate your case and let you know whether it will suit you.
Yes. Credit card companies are usually more than willing to compromise with people who are genuinely struggling due to the fact that getting something is better than nothing. We have worked with most credit card companies, and we know how to make them a serious offer.
All cases are different, but generally, our team will be able to help you negotiate a reduction of as much as 70%. It all depends on the creditor and your situation, which includes the time the debt has remained unpaid. Treat that figure as a typical range, not a guaranteed result.
Most settlements will take between 4 and 12 weeks. This is dependent upon the responsiveness of the creditor and if you are able to pay a lump sum amount. The nature and age of the debt is also considered. A one time settlement arrangement will be settled faster than payments made in instalments.
Your case is prepared, and we handle matters directly with the appropriate parties on your behalf, leading to a more successful outcome compared to when you do everything by yourself. Debt collectors are experienced negotiators and know what people usually settle for. However, if your intention is not to reduce the amount of debt but to dispute it, then the process is different. Disputes about debts may be raised at no cost via AFCA, an external dispute resolution scheme.
Usually not in the long term. This might include a temporary notation during the settlement period, but if the debt has already been assigned to a collection agency, then the effect on your credit score will likely have already taken place. Resolving the account can give your score a chance to rebound from there.
There are a few options, each suitable to particular circumstances. Debt consolidation entails consolidating your debts into one loan with only one repayment, although it does not lower your debts and relies on qualifying for the new loan. The other option would be a debt management program or debt agreement under Part IX of the Bankruptcy Act; however, these are insolvency solutions that we do not provide, while bankruptcy should be regarded as the absolute last resort. For free information, you can contact an independent financial counsellor via the National Debt Helpline on 1800 007 007, which provides free and independent advice along with budgeting services. Real Credit Repairers offers services to individuals wanting to have their debts negotiated for them by someone else.