How Do My Hubby And I Get Out of Bad Credit On One Low Income in Australia? – Evelyn


“Dear Steve,

Hi both my husband and i are in around $40k debt combined. We live in Sydney on only his one income and find it hard to live comfortably now we seem to be going behind and behind.

I’ve tried to get loans to pay debt but havent been able to due to our bad credit us both and low income. I then realised getting loans to pay debt will be putting us in more debt. Please help we are desperate and need help if there is anyone who does consolidations for people lke us for small fees please let us know

URGENT…How do my hubby and I get outa bad debt of 40k combined we also now have bad credit realy bad and only on 1 low income



Dear Evelyn,

When you you live in Sydney, I am assuming you mean Australia.

There are debt solutions available in Australia. The major solutions are:

  • Informal Arrangement – This is much like a U.S. based debt management plan. It is a non-binding agreement between you and your creditors to repay your debt. Just like in the U.S. your creditors could change the repayment terms at any time along the way.
  • Debt Consolidation Loan – For people that are having problems, the chance of getting a true debt consolidation loan are slim to none. No legitimate creditors is going to extend a loan to someone that is already in a bad spot.
  • Mortgage Refinance – If you own a home and have equity in your property, a mortgage refinance is a legitimate way to borrow money to pay off your debts. However, you can’t borrow your way out of debt. You need to understand that you are swapping one form of debt for another and now securing the debt against your property. If you can’t pay the new mortgage, you could lose your home to the bank.
  • Debt Agreement – A debt agreement is a legally binding agreement that is available to you as long as you earn less than $62,735.40 per annum and you have less than $83,647.20 of debt.
  • Part X Agreement – This is a Personal Insolvency Agreement (PIA) that allows you to repay your debt based on what you can reasonably afford to pay. An insolvency professional will put forward a formal repayment proposal to you creditors that upon voting and at least 75% acceptance by your creditors it will become binding on all your creditors.
  • Bankruptcy – You might need to go bankrupt if there is no reasonable expectation that you will be able to repay your debt. Before considering bankruptcy or any solution, you need to speak to a debt professional in Australia.

Using the solution terms above you should be able to do a local search in Australia to find providers of these services that can assist you.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Steve Rhode
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1 thought on “How Do My Hubby And I Get Out of Bad Credit On One Low Income in Australia? – Evelyn”

  1. Please keep my email confidential!!!

    Thank you Steve, i have spoken already to a debt counsellor and shes recommended a debt agreement, She gave me details of contacts close to me and i have someone coming to visit me at my home thursday next week. She asked questions which i honestly answered and she tels me theres no way that she WONT be able to hep us in fact she says theyve helped people with debt 4-5 times more than ours and they have lower income than ours

    Thank you i never knew of sch think only bankruptcy which is what i never want to do. She says ours wil probably take around 5-6 years to pay at $600 per month which is what we can comfortabky afford to get rid of these debts. Which im more tha happy to get started she says wil take arond 8-10 weeks as she has lots of work to do with courts creditors etc.

    Thank yo at least i know wel be debt free in that time and never again anymore we now buy everything cash or aybuy. I have a new saying if you cant afford cash yo probably cant afford it at all

    Thanks again Steve


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