Discovering your financial track record has a glitch is becoming more of an issue. The 2000’s were a time of plenty and you could finance almost anything you wanted. In fact its 2015 and you still can, the difference is now, it’s harder and you have to jump through a few more hoops.
Finance has become harder to secure especially in Australia since the GFC. Tightening lending was important and reducing the opportunity for people in general to live beyond their means. Unfortunately as will always be the case, some people borrow more than they can service in terms of loan repayments and find themselves with a debt issue.
In Australia, a VEDA report can be the single factor that stops someone from getting credit and often it’s not until you apply for credit that you find out you have a mark against your name.
This can be devastating at the time but there are some things you can do:
- Ensure you pay your bills on time. A seemingly simple approach, however it’s those few late payments for your phone, or power or credit card that can come later and haunt you. Avoiding getting on a list is the best option.
- Ring the company immediately if you discover a bad debt. If there is an outstanding amount look to discuss a payment plan. Be aware just because you have paid it doesn’t mean it will be removed. Generally there are set periods of time that a bad debt will sit against your name.
- Contact the relevant Finance Ombudsman if you believe you have been treated unfairly. Acting as an independent person they view both sides and make a judgement. This can be time consuming and there is paperwork to complete. The best option is to be very clear about why you feel it is unfair. Just because you didn’t get a copy of the final bill because you moved is not a strong enough reason.
- Find another way to finance what you are after, save, or look to an alternative lender if you have tried the other tips. There are reputable lenders that focus on your ability to service a debt as opposed to what happened 2 years ago. The interest may be slightly higher, but using a service such as this can lead to proof that you can fund a debt and that what happened in the past was just a glitch.
Remember, money is only worth the paper it’s on. Debt can be worth so much more today and tomorrow. Living in the moment is important. Just make sure you can afford it.
content by Donna Slater