Help! I have no money left to pay my debts.
Sadly, in this world of buy now pay later we can often find ourselves in a position where there is simply not enough money to pay others what we owe them.One term that even confuses the professionals, including lawyers and accountants is summary instalment order (SIO), also known as a debt repayment order to further confuse.
This may be caused by money mismanagement, not being able to say “no” when we know we really should or by circumstances that are out of our control like redundancy or sickness. Fortunately, there are a few options that can help you to get debt problems.
So what are these debt solutions and how do they relate to your circumstances?
Three questions you need to ask about your debt situation.
How much debt do I have?
Who do I owe this money to?
How much income do I have?
If you have a budget then print off a copy, if not then complete our Simply Budget calculator.
Next fill out the Debtfix debt calculator. We'll ask you eight questions about your debts and your income. A debt solution will then be suggested which may include:
A summary instalment order (SIO)
Where we work with you to formalise an agreement to repay some or all of your debts over a three to five year period.
A No Asset Procedure (NAP)
If you have no assets and no surplus income and your debts are between $1000 and $47,000.
This could be recommended if you have a large amount of debt. We will work out an affordable payment plan which will be presented to your creditors. We manage the whole negotiation for you until an acceptable deal has been made. This is often a good solution as we only need the majority of creditors to accept the plan, even though all of them will be included and bound by it.
This is not an easy way out. The official assignee has control over almost everything you own, and can sell your assets to help pay off your debts. This is a last resort and not suitable for most people.
Debtfix | NZ’s debt lifesavers
Finally, pick up the phone and give Debtfix a call. We are a friendly New Zealand business with a team of non judgemental debt advisers.
We will then negotiate new terms for your debts which may include;
A reduction in the total amount to be paid.
Payment of debts over a longer term.
Once a new debt plan has been put in place your creditors will no longer be allowed to write to you, call you or visit your house making demands for payment. This is the law! All communication will be through us until your debts have been repaid under the agreed term
If you think you or someone you know would benefit from our service then please call us on 0800 DEBT 101 (Debtfix) or email us here.