Credit Mediation Services Pty Ltd holds a Credit Licence with ASIC, our Australian Credit Licence Number: 387 398. ABN: 77 118 988 382

Debt Settlement

43yo NSW Financial PlannerSick wife $400k ATO debt Reduced to Nil in 8 weeks

Chris Ryan of SA$320,000 Credit Cards & P/LReduced to $110,000 in 6 weeks

Credit Mediation Services Pty Ltd holds a Credit Licence with ASIC, our Australian Credit Licence Number: 387 398. ABN: 77 118 988 382

What is debt settlement?

Creditors agreement to reduce the debtors pay out balance to a mutually agreed figure for the purpose of immediate settlement.

Credit Mediation Services Pty Ltd holds a Credit Licence with ASIC, our Australian Credit Licence Number: 387 398. ABN: 77 118 988 382

History

• US banking deregulation in the 1980’s (loosening of lending practices, recession)

• Expanded to UK, Europe

• 2005 Australia

Credit Mediation Services Pty Ltd holds a Credit Licence with ASIC, our Australian Credit Licence Number: 387 398. ABN: 77 118 988 382

Legislation

• No legislation enforces creditors to settle debts

• NCCP Hardship legislation (s72-73 NCCP)

• Part 9 & 10’s & other alternatives

Credit Mediation Services Pty Ltd holds a Credit Licence with ASIC, our Australian Credit Licence Number: 387 398. ABN: 77 118 988 382

Banks response • “Computer says no” –good negotiator (will get

a yes 99% of the time)

• Preferential to payment arrangements / bankruptcy

• Settlement campaigns

• Debt collection agencies

Credit Mediation Services Pty Ltd holds a Credit Licence with ASIC, our Australian Credit Licence Number: 387 398. ABN: 77 118 988 382

How mortgage brokers debt settlements

• Refinancing high LVR deals

• Value add for broker

• Service to client