Frequently Asked Questions: Debt Resolutions

Relationships are also very important and take time to cultivate.  As we work with many credit providers on a daily basis we are able to interact with them positively and often resolve matters where otherwise it may not have been possible.

Effective debt negotiation can be a tricky and often complex process, most people prefer to engage the services of a professional such as Clean Credit Debt Resolution. Remember, we only get paid if we reduce your debts so we are highly motivated to deliver you a positive outcome.

No, we will provide you with a few short forms to complete and may require some supporting documents such as Payslips or bank statements etc.  Each matter is different so we will let you know what we need from you.

Once we have negotiated your debts and reached a reduced payout amount acceptable to you the payment can be paid to the creditor via electronic transfer, Bpay or bank cheque.

Our fees are based on how much we save you, if we are unable to save you money you pay us nothing.  We would be happy to explain our fee structure with you anytime.

We will only be able to help you if you have access to sufficient funds to retire your debts ,at the reduced amount.

People are often able to raise funds to settle their debts from a variety of sources such as help from friends or family, the sale of assets or a tax refund.

If you have equity in a property you may be able to arrange for a refinance that will allow sufficient funds to retire your debts.

Our services are very different to a formal debt agreement.  Our focus is to arrange for the reduction and payout of your debts in a lump sum, not the arrangement of a payment plan.

Where a formal debt agreement will be recorded on a credit file for seven years our activities will not be noted on your credit file at all and will have no adverse effect on your credit score.

No, we are happy to work on one or all of your debts, it’s entirely up to you and your circumstances.

It is rare for our company to not successfully negotiate a debt reduction however as our fees are only payable upon reducing your debts there is absolutely no risk to you. No reduction no fees!

Loan facilities such as mortgages can be difficult to reduce as the credit provider has direct recourse to recover their debt via the position and sale of the security. It is only in the case where they feel the security they hold is not sufficient to retire the debt will they entertain a reduction. Due to this the majority of our matters relate to unsecured debts.

No, in some cases this can actually help as the creditor will be spending money on legal fees and in many cases they will be highly motivated to resolve the matter. Should it be required we are able to engage our company solicitor who is often able to assist with these matters.

While each matter is different as a rule of thumb you will either need to have available funds sufficient to payout the agreed settlement figure or a loan approval in place for an amount adequate to retire your creditors.

The fact that we are able to talk with your creditors about the complete discharge of the debt provides us with significant negotiation power and in many cases allows us to reduce your debts significantly.

Yes, once you commission our services your creditors will be instructed to correspond with our company directly which means they will not call or write to you while we are involved.

No. In most cases a credit provider can only list a negative credit item after the account is a minimum of sixty days in arrears. Prior to this they have no capacity to inform the credit reporting agencies of the missed payments. In these cases your credit rating will not be affected by engaging our company no matter how much we reduce your debt by.

Should the credit provider have already listed a default with the credit reporting agencies prior to our company becoming involved the listing will be updated to show the matter has “settled” after we have arranged the reduction and payment of the debt.

This is one of the few situations were arrears can be a good thing. With an unsecured creditor loan arrears are very serious as other than legal action their avenues to recover debts are very limited. If your loan is in arrears it will almost certainly be red flagged by the creditor and they will be actively seeking a resolution. Our greatest successes are often with older debts that are in arrears. Recently we were able to reduce a debt in this category by over 80%.

This really depends on the situation however most matters will take from a few days to four weeks to resolve.

This question is subject to a number of variables such as the age of the debt, who the credit provider is and the current state of the debt. Reduction amounts can range from 5% to over 80% of the original debt. It is common for us to achieve reductions of between 40% to 60% for our clients.