Hi Lovely IM's
I am writing in for some advice on my credit report,
I moved out of home at only 16 1/2 therefore I did not understand the consequences of not paying my bills so unfortunately I damaged my credit.
I received a copy of my credit report about 3 years ago and even though i was sure I would be in knee high debt I was about $6000 with atleast 5 overdue accounts.
I went to see a financial counselor last week thinking I'll be paying my debts for the rest of my life but I have just received a copy of my recent credit history.
I have only one outstanding account worth $3000 now but it says it will be deleted 25 June 2016
My husband and I have a very good history of savings and always have money in our savings account so my question is, should we keep saving (for a deposit for home loan) for the next 16 months and wait for the debt to be deleted or pay it off?
Thankyou x
2 Replies
Pay it off. You have the money, it is the right thing to do. It will clear your history up faster.
You should contact a credit fixing agency, google them and see what they can do for you. They will lobby the companies to get the defaults cleared. Don't pay it off until you speak to them because they can use the money you owe as leverage to get it cleared. We did this about 2 years ago and while it was really expensive, we had to do it so we could get a home loan. We now have a mortgage with commonwealth bank and they are none the wiser about my partners history.