We reduce stress and change lives.

The team at Select Financial Services are experienced debt negotiators who work with institutions to waive debts, reduce debts, negotiate settlements or come to affordable financial arrangements for our clients.

We deal with financial institutions, creditors, liquidators, debt collectors and the ATO to work out the best solution on your behalf. It is often too difficult, overwhelming and stressful for businesses and individuals to attempt debt negotiations on their own, due to emotional involvement, distress, uncertainty and understanding of strategies. As long-time specialists in the field, we have access to the right avenues to help you with your debts.

Who are Select Financial Services and what do we do?

• WE ARE LICENSED ASIC ACCREDITED DEBT MANAGEMENT SPECIALISTS

What is a Debt Management Specialist?

A Debt Management Specialist as of 1st July 2021 is required to hold an ASIC approved license for Debt Management Services and demonstrate that it complies with the National Consumer Credit Protection Amendment Regulations 2021.

The services Select Financial undertakes on behalf of clients are as follows.

• Helping consumers negotiate changes to a debt under a consumer credit contract with the credit provider, including ATO debt or other unsecured debt. Having this license enables us to deal with creditors and take on all the correspondence and calls with a third-party authority on the client’s behalf.

• Typically, with negotiations we review the client’s situation, and work with the client and the creditor to achieve the best outcome for both parties. This primarily involves unsecured debt such as credit cards, personal loans, business debt and ATO debt.

• We take the stance that negotiations draw a line in the sand where to resolve the issue creditors may have to potentially discount debt to allow both parties to move forward. Creditors usually do not want to be accruing legal expenses for collection, selling people’s homes or bankrupting clients, we are the conduit.

• In house and with our affiliated Mortgage Brokers throughout Australia we also can arrange finance if this is beneficial for the client. This assists us with negotiations as creditors can gauge that the client is proactively seeking to address their situation. We negotiate discounts or waivers on unsecured loans if they needed to facilitate successful finance applications and requirements.

• Our services do not affect our clients credit file and is not a part IX Debt Agreement.

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Our Process and how we charge for our services?

After Initial consultation we send the client a Questionnaire which clarifies goals and objectives and includes a Statement of Financial Position (SOFP) which helps us determine the most appropriate course of action. This may include:

• Can we refinance or consolidate borrowings to facilitate placing the client in a better financial position.

• If the client has access to external funds, can we use these funds to achieve a creditor discount on unsecured loans to alleviate financial pressure.

• Does the client have a default on credit file which if we can remove or update assist with either getting a loan or a cheaper interest rate on that loan.

• Determine the best course of action if a property needs to be sold due to creditor or personal issues to ensure on the sale the client achieves the best financial benefit. We are also affiliated with Real Estate Agencies to ensure that any dealings are confidential, and any discounts we can achieve are reflected on settlement.

• Advise and assist clients and refer them to specialists we work with if a Company Liquidation, Part IX Debt agreement Personal Debt Agreement or Bankruptcy may be the most beneficial course of action for the client.

• Assist with Hardship Management Plans

• Assist with postponement of enforcement proceedings.

• In certain circumstances make a complaint or claim to a credit provider, AFCA, ASIC or the Information Commissioner.

• Refer clients to other agencies which may be able to best assist their circumstances.

How we charge for our services?

• We do not charge any upfront fees in most cases for our services.

• If we are not successful in our endeavours to place clients in a better financial position, there is no cost.

• No Success = No Fee

• We make our fees by charging a percentage of what we save out of the outcome if successful. These are either built into the discounted creditor payment, typically, paid out on either refinance of the loan, or out of external funds organised by the client.

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Typical Debt Negotiation Scenarios.

Scenario 1: Business Owner.

This owner approached us on a Wednesday where he had received a notice for repossession of his family home to be executed the next day.

We contacted the Bank and were granted a 30-day extension on the repossession order for us to evaluate the situation.

Background Story:

The client was a tradie who had run his own business which primarily worked as a subcontractor on building sites in Melbourne. One of the builders he worked for went into liquidation during Covid owing our client a substantial amount of money on invoices for work completed in which he was advised by the liquidator that he had little to no chance of receiving.

Our client subsequently borrowed via credit cards, personal loans and unsecured business funding to pay his workers, suppliers and other assorted creditors.

Having all these additional expenses impacting his business he was left with no alternative but to cease trading. As a result, he was no longer able to service any loan repayments and fell into arrears with all his creditors.

On reviewing his Statement of financial position, we determined that the only asset he had was the family home with a mortgage on the property, plus the assorted unsecured loans, the client was significantly in deficit with no equity.

Outcome:

We spoke to various lenders and secured a second-tier lender which was prepared to lend 75% of the property’s value on the condition that all creditors’ claims were satisfied.

We then put forward a proposal to all the unsecured creditors including the ATO. We negotiated a deal where the client saved more than $400K on his loans and commitments as full and final settlement for the finance to proceed.

This enabled our client to retain his family home, have no outstanding debts and move on with his life.

Scenario 2: Relationship Breakdown.

These clients approached us regarding a property they had purchased during Covid where they had secured a minimal equity, interest only loan on an owner-occupied property.

Rises in Interest rates, significant unsecured credit card and personal loans eventually resulted in payment defaults. Subsequently the loan reverted to principal and interest repayments.

This led to the breakdown of the relationship where both partners wanted to exit the property and move on.

Outcome:

We negotiated a Hardship Management Plan with the Mortgagee and other unsecured creditors. All payments and interest were placed on hold for 30 days, allowing us time to assess the situation.

After completion of our due diligence, we ascertained that both parties had approximately $100K of unsecured personal and credit card loans.

We came to an agreement with the unsecured lenders, that the owners were prepared to sell the property which we arranged through our network, and organised a $60K discount on the unsecured debt payable at settlement. This enabled both clients to move on and use the discount to satisfy the Real Estate Agents fees, advertising costs as well as associated legal fees and conveyancing costs.

Scenario 3: Family in crisis

These clients were a young married couple with four young children. A business failure accumulated significant unsecured debt which had been on payment plans with the Banks and Collection Agencies for years.

They struggled to service the payment plans which caused severe financial hardship. The payments didn’t come close to satisfying the accruing default interest, and as a result the debt each year was growing experientially.

The couple were not eligible for finance and were externally advised to enter a part IX Debt agreement.

Outcome:

The client’s family had gifted them $40K which we used to negotiate a reduction of over $90K with the creditors for full and final settlement.

This stopped the exorbitant debt growing and allowed the couple to be debt free.

Scenario 4: Bankruptcy/ Company Voluntary Liquidation

In certain circumstances it may be the best option for a Company Director who is at risk of insolvent trading to appoint a Liquidator or an individual who for various reasons may be financially better of declaring bankruptcy.

Select Financial Services realise how traumatic and daunting completing paperwork, answering questions and dealing with Trustees and Liquidators can be.

We can assist if required to prepare paperwork on our client’s behalf and act as a conduit between the Trustee/Liquidator/Client as needed.

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Don’t feel shame and embarrassed. You are not alone: Debt stress impacts millions of people every day.

In 2024, ASIC research found that 5.8 million Australian’s struggled with debt over a 12-month period. For many Australians, the path to seeking help feels daunting, embarrassing, confusing, and challenging.

Financial circumstances can change in an instant with many trying to manage debts without seeking help. Often, the pressure of debt stress can result in the following:

• Increased stress and anxiety.

• Losing the family home or business.

• Fear of answering calls or opening mail.

• Feeling shame, helplessness and trapped with nowhere to turn.

• Becoming secretive and withdrawn from family and friends.

• Suffering nervous breakdown, severe depression and/or suicidal thoughts.

• Relationship strains and breakdowns.

• Physical symptoms on overall health and wellbeing.

Our Accreditations and partners