VIC Credit Corp Debt - What to do?

[Sabri Moussi]

Hi,

My wife has a debt with Credit Corp. She is no longer living in Australia - she has moved to Europe. I have tried on several occasions to get a good deal to close the debt, but they will not budge.

She is currently paying $50 a fortnight. Is she obligated to pay them? What ramifications will it have if she doesn't pay them? Will it affect her credit score in the future (if she decides to move back to Australia)? Is there anything we can do to get this debt close, that will not require the total amount? She is currently owing them around $26.000.

I am new to all of this, so I am just trying to wrap my head around it.

Best regards,

Sabri

 

[Nige123]

every time she makes a payment it resets the statute of limitation period. If she doesn't hold any assets in Australia I would just stop paying and forget about them. they are a bunch of vultures so don't feel bad - they would have only paid about $2000 for that debt. The credit score will be cleared 5 years after they first marked it - which they would have already done by now.

 

[PK6172]

ask them what they will accept to clear the debt and see what you can agree on.... unless she had plans to return to Australia, there is no real point to paying any more..... the down side of course is that you will probably get called asking about her... as will family and friends, and Credit Corp aren't known for taking "please dont call me anymore" well.... I would also suggest checking to see what the Interest Rate being charged is.... $50.00/FN on $26K wont make much of a dent.....good luck.....

 

[Sabri Moussi]

ask them what they will accept to clear the debt and see what you can agree on.... unless she had plans to return to Australia, there is no real point to paying any more..... the down side of course is that you will probably get called asking about her... as will family and friends, and Credit Corp aren't known for taking "please dont call me anymore" well.... I would also suggest checking to see what the Interest Rate being charged is.... $50.00/FN on $26K wont make much of a dent.....good luck.....

Do you think that if I stop paying, that they would probably offer a better deal to close the debt? Does such a debt get nullified after a few years? Or does my wife's credit score start new after a few years?

 

[PK6172]

Do you think that if I stop paying, that they would probably offer a better deal to close the debt? Does such a debt get nullified after a few years? Or does my wife's credit score start new after a few years?

If you stop paying then they will contact you as a means to get in contact with your wife to restart the payments. The debt becomes stat barred after 6 years after the last payment has been made... so if you stop now, it will be 6 years from this payment..... however, if they feel it is worthy enough they can commence legal proceedings and get a Judgement, which then increases the time frame they are allowed to continue to chase the debt. Defaults have a life span of 5 years from the date of the initial default, regardless if they have been paid or not, that being said, some agencies will re default if there is no default listing already.

 

[Sabri Moussi]

If you stop paying then they will contact you as a means to get in contact with your wife to restart the payments. The debt becomes stat barred after 6 years after the last payment has been made... so if you stop now, it will be 6 years from this payment..... however, if they feel it is worthy enough they can commence legal proceedings and get a Judgement, which then increases the time frame they are allowed to continue to chase the debt. Defaults have a life span of 5 years from the date of the initial default, regardless if they have been paid or not, that being said, some agencies will re default if there is no default listing already.

Thanks for you answer. I checked my wife's interest rate and it is 0%. I think it is like that because she was a student at the time that credit corp bought her debt from the banks. I am still in the limbo on what the best solution would be for us.....the way it is going, it would take 21.6 years to pay the debt ($50 a FN). And I am not willing to pay the full amount that they want.

 

[Tim W]

For advice you can actually rely on, consider contacting these guys.

 

[Sabri Moussi]

For advice you can actually rely on, consider contacting these guys.

Thanks. i will check it out.

 

[irressponbilelending]

Lodge an AFCA compliant for irresponsible lending they will then offer u a deal

they are a bunch of clowns