Debt Consolidation

Australia has numerous offers for debt consolidation and Debt Fix seems ideal, but are they any good? We have a real experience to share.

We created The Debt-Free Community as a means to help people get out of debt. Our intention of this website is to provide you with tips and advice while at the same time investigating companies providing such services.

Straight up – we’re totally against payday loans. They are the worst of the worst out there and prey on the vulnerable. When we see someone whose aim is to reduce the debt obligations of everyday Australians, we sit up and pay attention.

At the same time, we can be critical. We want to know if Debt Fix and other companies are worth it, so we became a test-dummy.

Here are our experiences.

Debt Fix Review

We started off by researching what we could with the resources we have.

Our first point of call when looking at these debt consolidation companies is company information available on the ABN Lookup website.

Oh hello! You’ve been operating since 2005. That’s 15+ years now. ?

We don’t like fly-by-night operators which give the industry a bad name for itself. For this reason, this is an instant big tick in our books.

Then we had a look at Word of Mouth Online, otherwise known as WOMO.

That is impressive! We have written reviews of other companies like Debt Fix and never have we seen actual 100% feedback like this. Mindblowing!

(I’m being serious here. It’s very hard to get 5/5 ratings on these review sites)

So on the onset, we see two very impressive characteristics:

1. They’ve been around for a long time. This means they have the experience to sort out even the most complex of financial problems.
2. The online reviews of Debt Fix show that they go beyond the call of duty for their customers. This reputation has been built over time.

And those are the 2 most important characteristics: How long have they been around for and what are others saying about them? They’ve won on both instances.

Our experiences

We just had to dummy-test them for ourselves over the phone.

Here’s what we did: We created a false story that we were in debt and needed help. We called them several times in order to speak with different staff members.

In total, we spent almost half an hour on the phone each time. We just kept smashing them with questions, often the answers we could have just found ourselves on their website.

That wasn’t the point though, as we wanted to know if their staff actually know their stuff. The result? All of them were very knowledgeable and had been clearly working there for a while.

Instead of just saying “We’ll get you sign up to this loan” on each call we were shown different options that could work for us. This is a very good approach and rare in the industry.

After the phone calls, we were sent information packs to our email address and a summary of what we talked about. They did call us back later to check if we were still interested but their staff weren’t pushy or anything.

It’s clear that they are just looking for the right people to help.

And that’s the thing – they can’t help everyone. This is why, if you see negative reviews of Debt Fix, you should take them with a grain of salt.

Often these are people who just didn’t qualify and thus, didn’t really get to the finish line at all. They just need their 2 minutes of fame with a 1-star review and will then feel better on the inside.

Final verdict

The question is: Are they worth it?

There is a split answer here.

1. They are worth it if you have regular income and have a decent amount of debt, say $10,000. That’s what was told to us over the phone with them.
2. They aren’t really worth it if you don’t have any income or if your debts are small, like an overdue electricity bill. That sort of stuff you can sort out yourself with a payment extension.

For most people who do qualify and use their services will find them pleasant to deal with. At least, that was our experience with them.

Would we recommend them? Clearly – YES. They are one of the rare debt reduction and elimination companies in Australia who have been around for the long haul. They’ll be celebrating their 20 year anniversary soon.

Not only that, but the dozens of positive Debt Fix reviews demonstrate that they genuinely care about their customers first and profits last. That’s a big tick in our books.

We also provide a free discovery call should you want to learn more about getting out of debt. ? Hint: We can talk to debt collectors on your behalf!

Regardless of which way you go, this is your 1st step towards the debt-free lifestyle. Congratulations!

You might be looking for some thoughts and experiences with Debt Negotiators based in Bankstown, NSW. Let’s have a look, shall we?

You’re probably having a hard time right now. Am I right? Like you’ve been treading water for quite some time and now someone has come to the rescue.

Do you need Debt Negotiators or can you do this all by yourself? It’s expensive sometimes to use such services, but they can save you too.

What we want to know is: Are they the real deal for people doing it tough?

Let’s have a look.

Debt Negotiators Australia Review

Their website looks very good and the report that they’ve helped over 15,000 Australians get out of debt is remarkable. Compared to notorious payday lenders, that’s literally a saving grace.

(In case you didn’t know, we’re 100% for getting OUT of debt here)

What Debt Negotiators do is help you take control of everything. This way you can reduce the overwhelm and stress and hopefully have some extra money each week.

They can help you in several ways actually:

• Debt consolidation where you bring together a range of difficult debts like credit cards and personal loans under one umbrella
• Debt agreements when you’re in arrears and want to catch up.
• Credit repair services so you can take out a car loan for work without worrying about being rejected.
• Negotiation with your current debt collectors so you can perhaps get a discount on the original debt.
• Help you with budgeting for your weekly pay cycle
• Personal loans (We’re against taking out these actually)
• Dealing with credit card debt and can help you eliminate these over time through their strategy
• They might even get you a better rate on your home loan amongst all the chaos.

We like the amount of information that they provide on their website. It’s very helpful actually.

User reviews and experiences

Debt Negotiators have claimed to have helped thousands of Australians but the reviews are a bit on the low end. That’s a mild red flag in our eyes.

That said, the people who have helped them have been impressed, with 4.5 stars at this time of writing. This credit counselling service clearly knows how to help people out.

It’s often a case with these companies that there is a percentage of people who are just too far gone. Debt negotiation companies just can’t help them when they have 11 payday loans, 17 credit cards and 5 months in arrears on their home loan.

Well, that’s an extreme example, but you get the point. Debt Negotiators can’t help everyone but they do the best that they can.

What does Debt Negotiators actually do?

In Australia, debt negotiators will create a proposal with your existing creditor so the arrears and penalty interest will be stopped.

Sometimes you might be up for several hundred in a fee for this privilege. It can be really worthwhile actually because it saves you talking to nasty and rude debt collectors over the phone. Often worth it in our opinion.

Others charge a part of the savings that they can get for you. We like this approach as they are motivated to get as much of a discount for you that they can.

Original debt amount	$10,000
Negotiated debt amount	$7,000
Total saving for the borrower	$3,000
Commission for Debt Negotiators	$600
Final saving result for the borrower	$2,400

That’s a basic example which shouldn’t be relied upon because everyone has a unique situation. What’s evident is that they have created $2,400 in savings for the borrower which should be applauded!

We can see a true win-win situation here unlike payday lenders who just want to make a profit off your misery. We totally hate them here.

Some people try to tackle this on their own with their own paperwork and ‘legal templates’ which have no substance. And you know what? Most people wind up much worse than when they originally started.

Look – you do need the professional negotiators otherwise you might be up for harassment from debt collectors which is common in Australia. Often you’re not even paying anything out of pocket at all for the services on offer.

Alternative options

We don’t like the alternative options because you’ll have an impaired credit report for the next 5 years. If you need a new car for work, well tough luck there.

The options are:

• Bankruptcy (absolute last resort)
• Debt agreement created by you
• Personal insolvency agreement

We’re not a fan of any of these. They do have their place but you’re probably at a stage where you’ll get a much better deal with a debt negotiation company who can talk to debt collectors on your behalf.

We would recommend you speak with Debt Negotiators first to evaluate your options. You might find that you can get out of this mess without tarnishing your credit report.

While you might have a default listed, it’s much less impact than these 3 options above. Most creditors will still lend to you (albeit at higher interest rates) but at least you’ll have a chance in the off-chance you need a car loan to get by for a while.

So it’s often just a lot better to go with Debt Negotiators and get this sorted. After all, those debt collectors are becoming more aggressive each and every day.

Did you know that debt collectors can come to your house on weekends or after work during the week? Even as late as 9pm.

That can all stop if you use the services of Debt Negotiators or any of the numerous other companies in Australia.

In summary

We’ve gone and researched Debt Negotiators on your behalf. We did this because we wanted to give you our unbiased opinion.

In other words, we don’t get paid to write good (or not so good) things about companies. We just give you our raw opinions when we see Australian companies playing in the financial space in Australia.

Here at The Debt-Free Community, we’re impressed by what we’ve seen with very positive reviews for Debt Negotiators. It’s refreshing to see a company who actually cares about people in challenging times.

What would we recommend from here? Get in touch with them on 1300 351 008. They have solutions for people across Sydney, Melbourne, Brisbane, Perth, Adelaide and the Gold Coast.

Should you have any further questions, then let us know in the comments below.

It’s our firm belief that debt consolidation providers are generally not your friends. In fact, ASIC has recently put them in the spotlight.

We do recommend them in certain circumstances. It’s a remember, however, that they work as a for-profit enterprise.

Whilst you might not pay them upfront, there are charges and fees applicable to their services. Effectively, you’ll pay via the debt consolidation loan they provide for you.

Going debt free

If you’re needing some support, then we recommend counseling as the best possible first step in the journey. Getting rid of all your debts is quite literally liberating.

These companies are generally opportunity-driven. They make their money from targeting struggling Australians, and charge them high fees which are quite excessive. Our recommended service is quite reasonable, and one of the few exceptions in the Australian marketplace.

We’re really advocates of the debt-free lifestyle. This community we’ve created has inspired thousands of people around the country, and in fact, we’re now getting a lot of interest from overseas.

Being targeted: Seek independent advice

If you think you’re being targeted by a vulture in the debt consolidation industry, then it’s wise to seek independent advice. Our most recommended government website is the Consumer Action page which is full of excellent content. This is a great organization.

It’s also wise to no longer engage with such companies, unless you feel they’ll genuinely will help you through the tough times ahead. You, the individual, still has all the power.

Roles of debt consolidation companies

Australia has a range of firms that provide such services. They help consumers suffering from financial hardship.

Debt management firms do the following:

• Negotiate with creditors so you don’t have to
• Help you develop and manage your weekly budget
• Advise and organize formal debt repayment agreements
• Clean up, fix or repair default listings (Not reliable)

Often you’ll find these guys use high pressure selling techniques. Why? Commissions. They’re pretty high. But not all companies are like this, and our recommended service is quite legitimate and upfront.

Closing thoughts

Not all debt consolidation companies are vultures. There are some that have been in trouble with ASIC previously. Go with a reputable company who has been operating for years.

Despite all the challenges you might be facing, it’s wise to remember that you still have some form of control. Debt collection is a serious thing, and a debt consolidation loan can help you in some circumstances.

If you’re ready to have a chat to us, then we also provide a FREE 10 minute friendly phone call. We’re totally open and helpful, and are very much community-driven for all Australians.

The results are in on personal loan. And they’re staggering! Australians now owe approximately $50 BILLION in total credit card debt.

Most will never pay this off. This is a vicious cycle of debt.

For those that are struggling under the weight of debt, then we can help you. We’re advocates of Australians becoming debt free in this community.

Some people have asked if it’s better to take out a personal loan at a lower interest rate to wipe out a credit card debt faster. Good idea in some cases, but there are some things to consider before moving forward.

We understand the upside

Taking out a personal loan, which in this case is usually a debt consolidation loan, helps you to instantly reduce your monthly interest bill. Whilst we’re not going to advise going into more debt, they can work in some cases.

Also, many people can settle into a normal payment cycle to avoid fees and penalties. That is, as long as you maintain the monthly repayments

Personal loan considerations

We see some considerations worth mentioning:

• Interest rates. You need to check if you’re actually getting a better interest rate than what you’re currently paying.
• Potential to score an unsecured loan. Most of these debt consolidation loans are unsecured, thus meaning your personal property usually wouldn’t be at risk.
• Payment terms. Some of these loans are solid. That is – you can’t pay them back early (without more fees) and they’re unwilling to modify payment amounts if you need to reduce in the future.

All of these are based on individual circumstances. We can help assess whether you’d be the right fit, and you won’t have to pay us a single dollar. How cool is that?

Debt consolidation depends on you

If you’re considering a loan like this, also consider your financial goals and current position.

If you need more breathing space, then a long term personal loan with less interest could work. Look at a range of lenders in the market, and consider how flexible they are with applicants.

On the other hand, if you want to repay back as fast as possible and truly be debt free, then go for a shorter term loan. Provided, of course, that you can have the cash-flow to justify this.

Your credit history also is worth a check. Your score will determine straight up whether you’d stand a chance of obtaining finance for debt consolidation purposes.

Alternatives to a personal loan

There’s some great news! If you’re particularly in credit card debt, then there’s some banks that offer a zero interest balance transfer.

That said – there’s a catch. We mean, there’s always a catch isn’t there?

The rates may resort to higher than your previous credit card upon expiry of the offer. Some have set periods, and it’s generally 12 months.

As mentioned prior, you may not be able to do this if your credit history isn’t strong. So it’s wise to check that first.

The real solution

You need to address the root cause of your issues. Nothing is a quick fix. We’ve helped thousands of people through our great services, but it takes some time too.

If you’re being hassled by debt collectors, then we have the solution for you. We can talk to them so they stop calling you. We’ll make it right.

So get in touch, and let’s sort it out before it gets any worse!