Debt Busters

Debt Busters, debt management for individuals in Australia

Debt Busters is an Australian debt management company that works with people struggling to meet their payment commitments. Its method consists of building a plan tailored to what the client can actually afford and taking on the role of intermediary with creditors, so that they receive the calls instead of the debtor. The firm presents itself as an Australian-owned family business and states it has been operating since 2006.

Free initial assessment and repayment estimator

The first step the company proposes is a free assessment of about ten minutes, with no credit bureau check to talk and no obligation to continue. In that session, a debt management consultant reviews the person's situation and presents the available options. The website also includes a repayment estimator: the user drags a slider to roughly the total unsecured debt they hold and the system shows an indicative weekly repayment. The firm itself warns that this is a guide only and not a quote or offer, and that the final figure depends on the creditors, income and each person's circumstances.

Solution options it offers

The company structures its proposal around four main paths, which it compares with each other based on their effects on the debtor:

• Debt agreement: has a set end date, allows a single regular repayment, covers cards, loans and bills, and may involve paying back less than you owe. It does not appear on a public register and does not require a credit check to get started. It allows you to keep your home and car, remain a company director and keep an inheritance. It is not an act of bankruptcy.
• Informal arrangement: agreed with each creditor separately, with no legal backing, so it does not force anyone to pause interest; many agree to do so and some even reduce the debt. It has no guaranteed end date and can appear on a public register. It allows you to keep your home and car, remain a company director and keep an inheritance.
• Debt consolidation: groups commitments into a single regular repayment with an end date, covers cards, loans and bills, and allows you to keep your home and car. It does not necessarily avoid paying the total owed or pause interest, and requires a credit check to start the process.
• Bankruptcy: offers a set end and may reduce the amount to be repaid, but means a trustee takes control of your assets. A home with equity can be sold to pay creditors, although a car under a set limit and work tools are usually kept. It does not allow you to continue as a company director or keep an inheritance, and overseas travel requires written permission from the trustee; travelling without it can extend the process.

The firm notes that this is general information and that eligibility depends on each person's situation.

Results the company reports

According to the data it publishes on its website, Debt Busters has helped more than 7,000 people across the country and its clients have saved $136,021,474. It adds that 94.4% of its proposals are accepted and that clients who complete a debt agreement have paid back an average of 64 cents for every dollar they owed. The company warns that individual results vary and that informal arrangements are negotiated with each creditor separately.

Structure and regulatory framework

Debt agreements are administered by Debt Busters Pty Ltd, with RDAA number 1287, while informal arrangements are handled by A.C.N. 625 628 668 Pty Ltd. The company presents itself as an Australian family business operating since 2006 and offers telephone support and an online start form for those who want to begin the process.