Debt can cause enormous stress and impact your health if it is left to build up without having a plan of action to deal with it. The best way to start making inroads into tackling large debts is to acknowledge the problem, and accept that accumulating unmanageable levels of debt happens to a lot of people. Then look at possible solutions.
A debt agreement provides insolvent borrowers with a way to consolidate their debt if they do not meet the requirements for a debt consolidation loan. They can help if you do not wish to declare bankruptcy, but creditors may not accept a debt agreement proposal and they can’t be used as a solution for secured debt.
Bankruptcies will incur the lowest costs but come with a number of restrictions and implications. It will affect credit records and may limit a person’s freedom to travel or hold certain positions. Debt collectors and creditors may not pursue a person who is bankrupt.
Source: http://www.newsmaker.com.au/news/25786
