Debt Management

A KiwiDebt Debt Management Plan is an informal process of negotiating with your creditors for:

  • repayments you can afford;
  • The freezing or reduction of interest;
  • Writing off part of your debt;
  • extension of repayment terms;

Although creditors are not required by law to adhere to any of the above, many creditors see the positive work we at KiwiDebt are doing to assist families in financial difficulty, and are taking positive steps to assist us to help.

A Debt Management Plan is not a form of insolvency, and as such does not prohibit you from using various insolvency options should that arise in the future.

A Debt Management Plan will not mean you will be defaulted with credit reference agencies, however this does not stop creditors from adding theor own defaults to your credit.

Debt Settlement

KiwiDebt's Debt Settlement is the completion of a debt by way of a payment to close the account:

When there is a change in your circumstances, and you have a sudden unexpected influx of funds, you can use those funds to pay off your debt either in full or in part.

Many creditors have worked with KiwiDebt to allow clients to pay their debt off faster by utilising a form of discounted settlement, where a borrower can pay a smaller amount than is due, and the creditor 'forgives' the debtor for the remaining balance.

Debt settlement has been utilised for many clients when thay have received bonuses, estate funds, support from family, and is the best use of Consolidation Funds.

When a debt is repaid, a creditor must update any default to settled, closed or paid in full.