--- title: 2020, The Year of the Informal Agreement description: 2020 was a WILD year where a LOT changed! One thing that changed the number of our clients that decided on the benefits of Informal Agreements to help them move forward financially! Find out more about what an Informal Agreement is today. image: https://www.beyonddebt.com.au/hubfs/Blue%20Sea%20Travel%20Blog%20Banner%20%281%29.png --- ![Top bar image](https://www.beyonddebt.com.au/hubfs/Assets%202019/Top%20bar%20image.jpg "Top bar image") ###### ![](https://www.beyonddebt.com.au/hubfs/Assets%202019/Tv.svg)Did you see us on TV? - [Click Here](https://www.beyonddebt.com.au/debt-help) ![Close](https://www.beyonddebt.com.au/hubfs/Assets%202019/Close.svg "Close") [![Logo](https://www.beyonddebt.com.au/hs-fs/hubfs/Assets%202019/Images/Beyond%20Debt%20black.png?width=560&height=128&name=Beyond%20Debt%20black.png "Logo")](https://www.beyonddebt.com.au) [![Logo](https://www.beyonddebt.com.au/hs-fs/hubfs/Assets%202019/Images/Beyond%20Debt%20white.png?width=560&height=128&name=Beyond%20Debt%20white.png "Logo")](https://www.beyonddebt.com.au) #### [![Phone](https://www.beyonddebt.com.au/hubfs/Assets%202019/Images/Button%20Copy.svg)**1300 284 091**](tel:1300%20284%20091) #### [![Phone](https://www.beyonddebt.com.au/hubfs/Assets%202019/Images/Button%20Copy.svg)![](https://www.beyonddebt.com.au/hubfs/Beyond%20Debt%20October2017/small-icon.svg)**1300 284 091**](tel:1300%20284%20091) [![Free Consultation](https://no-cache.hubspot.com/cta/default/2583772/02eddd09-66a0-4e61-9e59-63ae64bfd94a.png)](https://cta-redirect.hubspot.com/cta/redirect/2583772/02eddd09-66a0-4e61-9e59-63ae64bfd94a) #### [1300 284 091](tel:1300%20284%20091) - ##### [Eliminate Debt](https://www.beyonddebt.com.au/blog/topic/eliminate-debt) [## How to Get Out of Debt in 2026: The Australian's Step-by-Step Guide (And Free Budget Planner) ](https://www.beyonddebt.com.au/blog/take-control-of-your-debt) [Read Article](https://www.beyonddebt.com.au/blog/take-control-of-your-debt) - ###### [Debt Agreements](https://www.beyonddebt.com.au/blog/topic/debt-agreements) - ###### [Bankruptcy](https://www.beyonddebt.com.au/blog/topic/bankruptcy) - ###### [Informal Agreements](https://www.beyonddebt.com.au/blog/topic/informal-agreements) # [2020, The Year of the Informal Agreement](https://www.beyonddebt.com.au/blog/2020-the-year-of-the-informal-arrangement) - ###### Ben Paris - ###### 09 Apr 2021 ###### LATEST ARTICLES - Debt Agreements - Bankruptcy - Informal Agreements [Back to blog](https://www.beyonddebt.com.au/blog) - Share - [**](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.beyonddebt.com.au%2Fblog%2F2020-the-year-of-the-informal-arrangement) - [**](https://www.twitter.com/share?url=https%3A%2F%2Fwww.beyonddebt.com.au%2Fblog%2F2020-the-year-of-the-informal-arrangement) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://www.beyonddebt.com.au/blog/2020-the-year-of-the-informal-arrangement) Informal Agreements have been around for a while. 2020 and Covid saw an explosion in the number of Informals and broad acceptance, even a preference for Informals from creditors.   An informal agreement involves an Organiser negotiating with multiple creditors a new affordable "agreement." You make a regular payment to the Organiser, who then distributes that money to creditors. Consumers should be cautious of Organisers who do not administer the agreement. Those who negotiate an informal agreement for a fee and then disappear, leaving the consumer to pay and deal with creditors on their own.   An Organiser who makes payments to creditors and deals with creditors will ensure that the agreement is sustainable and affordable. If an issue arises down the road, they will help you deal with that situation. Historically, creditors have shown a reluctance to modify contracts long term and have had a preference for formal insolvency agreement over Informals however;, Covid has changed all of that. Long-term modifications, which typically include freezing of interest and reducing the amount to be repaid, can now be obtained for those facing long-term difficulty. Consumers have also shown a preference for Informals. The uncertainty of Covid has meant consumers have not been confident enough to enter into "permanent" debt agreements, despite their often lower total repayments. Informals also do not impact credit histories; in fact, our internal research shows credit scores generally improve while in an Informal. Informals are also not "formal insolvency" which can be scary, despite those fears being misplaced. ###### Ready to become debt free? #### Take the first step to a debt free future [Ready to become debt free?](https://info.beyonddebt.com.au/request-a-consultation) ### You might find these interesting - ##### [Debt Agreements](https://www.beyonddebt.com.au/blog/topic/debt-agreements) ## [Annie](https://www.beyonddebt.com.au/blog/annie) - ###### Ben Paris - ###### 13 Dec 2022 - ##### [Debt Agreements](https://www.beyonddebt.com.au/blog/topic/debt-agreements) ## [Rebecca paid off $24,000 and got debt free!](https://www.beyonddebt.com.au/blog/rebecca-paid-off-24000-and-got-debt-free) - ###### Ben Paris - ###### 07 Sep 2022 - ##### [Debt Agreements](https://www.beyonddebt.com.au/blog/topic/debt-agreements) ## [Online Quotes Launch](https://www.beyonddebt.com.au/blog/online-quotes-launch) - ###### Ben Paris - ###### 29 Aug 2022 - [Personal Finance Basics (126)](https://www.beyonddebt.com.au/blog/tag/personal-finance-basics) - [Handle Money (100)](https://www.beyonddebt.com.au/blog/tag/handle-money) - [Everyday Expenses (61)](https://www.beyonddebt.com.au/blog/tag/everyday-expenses) - [Affordable Living (50)](https://www.beyonddebt.com.au/blog/tag/affordable-living) - [Build Savings (33)](https://www.beyonddebt.com.au/blog/tag/build-savings) ## Ready to become debt free? #### Speak with one of our specialists to start your future [![About Beyond Debt](https://no-cache.hubspot.com/cta/default/2583772/e771166e-724a-4461-9ee9-fd819c4c0fe2.png)](https://cta-redirect.hubspot.com/cta/redirect/2583772/e771166e-724a-4461-9ee9-fd819c4c0fe2) [![Get Help](https://no-cache.hubspot.com/cta/default/2583772/8ac6a951-8425-44d9-91d4-0928fca0084e.png)](https://cta-redirect.hubspot.com/cta/redirect/2583772/8ac6a951-8425-44d9-91d4-0928fca0084e) #### [![Phone](https://www.beyonddebt.com.au/hubfs/Assets%202019/Images/Button%20Copy.svg)![](https://www.beyonddebt.com.au/hubfs/Beyond%20Debt%20October2017/small-icon.svg)**1300 284 091**](tel:1300%20284%20091) - ![Family-Owned-transparent-300x158](https://www.beyonddebt.com.au/hs-fs/hubfs/Assets%202019/Images/Family-Owned-transparent-300x158.png?width=115&name=Family-Owned-transparent-300x158.png) - ![pipa_logo_transparent_300w_100h](https://www.beyonddebt.com.au/hs-fs/hubfs/Assets%202019/Images/pipa_logo_transparent_300w_100h.png?width=151&name=pipa_logo_transparent_300w_100h.png) - ![Feefo](https://www.beyonddebt.com.au/hs-fs/hubfs/Feefo.png?width=115&name=Feefo.png) ##### Debt Help ##### Company ##### Resources Beyond Debt is a trading name of DCS Group Aust Pty Ltd. 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