Factsheet: Negotiating with Creditors

If you have a debt that you cannot afford to pay, you can try to negotiate with the creditor. You cannot force a creditor to negotiate, but many will. There are a number of different methods of payment as an alternative to paying the full amount in a ‘lump sum’ (in one complete payment).

This Factsheet will provide information on the following issues:

• Payment by installments;
• Postponement of payments;
• A reduced lump sum;
• Waiving/writing off debt;
• Hardship variations to loans under the National Credit Code;
• Consolidation loans; and
• Pro-rata payments.

Access the full PDF below for a complete guide to negotiating with creditors.

This resource is under review following recent changes in the law. It may not be current and accurate.