Frequently Asked Questions

 
Frequently Asked Questions - Debtfix NZ
 

Debt Myths Busted!

 
 
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If I contact a business and explain I am struggling to pay their bill or a loan payment I will only make things worse?

Contacting a business that you owe money to is the crucial first step you should make if you are unable to pay your debts on time.  You will need to explain your circumstances to them and let them know what has changed in your life.  Write down the points you need to make.  For example, you have been off sick, you have had your hours reduced, you have just had a very large unexpected bill to pay, you or a partner may have been made redundant.  They will use this information to formulate a plan that will work for both parties.

If you don’t contact them, they will start sending missed payment notices to you by letter and start calling you on the phone chasing payment.  You can avoid all this if you speak to them first.


If I call them and say I can’t pay they’ll put something bad on my credit score?

Every late and missed payment will negatively affect your credit score.  If you are consistently making late payments and start to miss payments, this will have a very bad effect on your credit score.  You must take action as soon as you realise there is a problem to enable a suitable plan to be made.


I can’t see a way out of my current financial mess.  I’ll have to go bankrupt.

Bankruptcy is the last resort. Debtfix has options that may be more suitable for you and allow you to avoid bankruptcy.  Options such as a creditors proposal, no asset procedure and summary instalment order enable you to draw a line under your debts in a discreet way, by enabling you to formulate a plan that will get you out of debt and start rebuilding your credit score.  You need to look forwards not backwards. You’ll feel less stressed and be able to start plan for the future.


Debt collectors will still call at my house, at work and on the phone while I have my unpaid debts. They won’t go away until I have repaid everything I owe.

Once you have agreed a new repayment plan and it has been agreed with your creditors then they, or any debt collection agencies working on their behalf are not allowed to chase you for repayment.  That is the law!  If you do get any that try to do this then call us and we will deal with them for you.


I’m too embarrassed to call anyone for help. I’ll be judged as being incompetent and useless with money.

Don’t be worried about this we totally understand.  No one plans to take on debts that they can never pay back.  Situations change and something that was once manageable becomes totally unmanageable if your circumstances suddenly change.  Take action as soon as you know there is a problem and we will listen and let you know what your options are and guide you through the necessary process.  Debtfix will handle the day to day administration of your new debt solution plan while you can get on with your life …. with a good budget in place of course!


Quick Debt Facts

 

How much will my repayments be?

The repayments you make will be based on your budget and situation, and will be affordable.


What’s the difference between secured and unsecured debt?

If a debt is secured it means that of you stop making payments to that debt, then the creditor will remove the security from you as payment towards the debt. For example, a car loan would have the car as security and if you stop making these payments then the creditor can repossess the car and sell it towards payment of the debt. If you are not sure whether a debt is secured or not you will need to check the contract that you signed as this will show the security if there is one.


Does my employer need to know?

Your situation is confidential, and we usually only need to discuss this with you and your creditors. However, if you fail to make your regular payments then your employer may be requested to make these direct from your wages.


Will it affect my credit rating?

Each debt solution affects your credit rating in different ways, and some don’t affect it at all. We will advise this for each solution that suits you.


Will my bank close my account?


Should I go Bankrupt?

We at Debtfix see Bankruptcy as a last resort. We will explore all the options that are suitable to your situation, and sometimes Bankruptcy may be one of those solutions.


How long will it last?

Debt Solutions generally last between 3 and 5 years however each solution will be different, and we will clarify the period of your debt solution to help you decide if it is the right one for you.


Can I keep my credit card?

This will depend on which solution is best for you and will be discussed with you by the debt adviser who deals with your case.


 
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