Like it or not, unfortunately a debt agreement such as a Part IX Debt Agreement negatively impacts your credit score much like a bankruptcy. There are many misconceptions about Part IX Debt Agreements.
Is a Part IX Debt Agreement just like a debt consolidation loan?
No. A Part IX Debt Agreement is a binding contract between yourself and your creditors and overseen by a credit reporting agency. This means you agree to pay back a fixed amount to your creditors within a set time period until the debts are cleared.
Sometimes these are sold as “debt consolidation” loans, which is somewhat misleading. Some Part IX Debt Agreements may have elements of debt consolidation packages, but each agreement varies according to personal circumstances.
It’s also worth noting that Part IX Debt Agreements are an act of bankruptcy according to the Commonwealth Bankruptcy Act 1966. To some financiers, a Part IX Debt Agreement is just as bad as having a full bankruptcy.
Will I be able to get car finance with an active Part IX Debt Agreement?
No, usually mainstream and most bad credit car loan lenders will refuse your application if you are serving out a Part IX Debt Agreement.
In saying this Bad Credit Car Loans has access to some very niche financiers that can extend you credit to buy a car if your Part IX’s debt agreement has passed the two year mark and of course on time repayments.
I have completed my Part IX Debt Agreement. What should I do to make sure I get approved?
To get approved you must show that you have stable employment that provides you with enough money to pay back a car loan on top of paying all your regular obligations such as rent, electricity, water, gas, etc. You will also need to prove your residential status has been stable, and you are not in arrears with any other financier, landlord etc.
What about interest rates?
The interest rates you will pay will most likely be in the higher than your main stream interest rates, rates will start generally from 12%. Making regular and on-time repayments will improve your credit score and give you the ability to refinance into a cheaper product within a few years.
Who should I talk to about Part IX Debt Agreements and car loans?
The team at Bad Credit Car Loan have extensive experience in assisting people that are wither in or have completed their Part IX Debt Agreement. At Bad Credit Car Loans we are experts at giving people a second chance.