A debt agreement is a good way to consolidate your repayments.
Unlike debt consolidation where you have to take out a loan, with a debt agreement you can consolidate your repayments without actually borrowing more money. Another benefit of consolidating your payments instead of your debt is that you may not have to pay any interest.
Your creditors will be asked to vote on your offer and this amount can be less than your normal payments and in most cases add up to less than what you currently owe.
Whilst a debt agreement is an alternative to bankruptcy, submitting a debt agreement proposal is still classified as an “Act of Bankruptcy”. If the proposal is not accepted by creditors, a creditor can use this to apply to the court to make you bankrupt.