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How debt negotiation works
Debt negotiation is a process where repayment terms are discussed directly with creditors to help make debts more manageable without entering formal insolvency arrangements.
At Clear My Debts, we help you assess whether negotiation may be appropriate, organise your financial information, and support structured communication with creditors based on your circumstances.
Negotiated outcomes vary by creditor and situation, but the aim is to reduce financial pressure while working toward practical, sustainable repayment arrangements.
What we help you with
We support you through the debt negotiation process by helping you prepare, communicate clearly, and understand your options at every stage.
- Reviewing your debts, income, and living expenses
- Identifying whether negotiation may be suitable for your situation
- Supporting communication with creditors where appropriate
- Exploring options such as revised repayments, temporary relief, or lump-sum discussions
- Helping you understand the implications of any proposed arrangement
Our role is to provide structure, clarity, and guidance — so you can make informed decisions without feeling overwhelmed.
How the process works
- We gather and review your financial information
- We assess whether negotiation may be appropriate
- Creditors are approached with a clear explanation of your situation
- Any proposed terms are discussed and reviewed with you
- If an arrangement is agreed, we continue to support you through the process
Outcomes are not guaranteed, as creditors must agree voluntarily, and arrangements depend on your circumstances and ongoing commitments.
Who may benefit
Debt negotiation may be suitable if you:
- Are behind on repayments or under increasing financial pressure
- Have unsecured debts such as credit cards or personal loans
- Are experiencing a temporary change in circumstances
- Want to explore alternatives before formal insolvency options
- Prefer structured support when dealing with creditors
We’ll help you understand whether this approach aligns with your situation.
Important considerations
- Creditors are not required to agree to negotiated terms
- Arrangements may be changed or withdrawn if payments are missed
- Negotiation does not remove the debt unless agreed by the creditor
- Outcomes vary depending on your financial position and creditor policies
We ensure you understand both the potential benefits and limitations before proceeding.