Do you have credit card debt?
Australians have $18.1 billion of credit card debt accruing interest according to Reserve Bank of Australia data for September. Individually, the average Australian has $1,157 of credit card debt, according to October data from our consumer sentiment tracker. It peaked in January ($1,967) and has slowly been declining throughout the year.
I am drowning in CC debt. Having companies constantly contacting me. What can I do? I have read all about ‘offering’ to repay a percentage is this possible?
Hi Jay,
Thank you for reaching out to us.
You may settle your credit card debts in different ways which will depend on your financial capability. See the options that you may take in settling your credit card balance.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.
I hope this helps.
Please do not hesitate to reach out to us again if you have additional questions.
Cheers,
Ash
Hi, We have 3 credit cards and about 18 months ago we contacted one of those dept help assist companies to deal on our behalf to claim financial hardship and so basically that was all good interest was frozen and we made minimal repayments, however not so long ago this dept help company has gone into receivership and we were stuck. I then contact the banks directly and we negotiated for another 6 months which is great. Basically in a few weeks we will have enough money pay them out however we were told that you can make them an offer to settle the debt and one of them have accepted around 20% off what is owing $13500 Now my question is what is recorded on the Credit File, will they listed at Default or as settled now sure where to call and ask.
Hello Molly!
Thanks for the inquiry! We know you’re working hard to get this all taken cared of. :)
Debt settlement companies may declare “paid”, “settled” or “paid as agreed” on your credit file, depending on their internal procedure and differentiation. We recommend that you consult with your settlement company to verify which one they put on the file of their customers who are paying less than the actual balance.
Hope this helps.
Cheers,
Jonathan
If I have a credit card debt of $35k with a bank, but also have a property valued at $500k and a loan with them of $335k, can the bank do anything with the property I have if I stop paying the credit card off?
Hi Darren,
Thanks for your question.
Please check the product disclosure statement of your credit card, under the financial hardship section. It should state what the course of action is if your financial commitments can not be met.
In most cases, your debt is transferred to a debt collector, and new payment terms can be made.
Cheers,
Shirley