Credit Rating

Hmm…seems right. Once the lender offers to repay the debt at a lower amount then the lender can put it on his credit report, as it shows to other lenders that he was not able to keep up with the debt and they had to negoitate a lower repayment then what he signed on his loan contract.

(If it was me) Its all about budgeting. i would write down all my income and expenditure. Then work out what i dont need and what i need.

If the default isnt lodged then a personal loan might be feasible however when a lender consolidates debts the lender would want 3-6month statements to make sure good conduct has been preformed on his part.

There is no easy way around things like these. However good budgeting skills is the key to saving the most amount of money so he can pay off his debts. Like i said just write down all his expenses and income then cross of one by one what he can save a few things here and there.

I educate my family to budget, especially my sister. When income is credited to your account, the first thing you should be doing is paying all your liabilities, ie. credit cards,board,personal loans. Then what ever is left over is yours.

FInance disclipine!

I hope this helps a little and good luck.

Joshua McEwen
Finance Consultant – WA

http://www.prestigeloans.com.au

Brokers Lic 1297
Licensee Brett Christie

Its a free service to obtain a copy of your own credit file although it takes around 3 weeks. http://www.mycreditfile.com.au
We recently received ours and were surprised how little was recorded. The information was years out of date and didn’t include bank loans and credit cards we have obtained over the last 4 years.
They provided us with a blank form to update our details if we so desired. Needless to say we declined the offer !!

Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”