The key to having a good credit record is to pay your bills on time. However, not everyone lives in a perfect world and it isn’t always possible to pay your bills on time. In fact we find that many people sink into debt over a period of time and don’t realise the significance of the problem until they can’t meet the minimum payments due on their debts each month. If you find yourself in this situation, then you are probably insolvent and you should seek professional assistance now.
If you are insolvent, you would be wise to consider a formal arrangement with your creditors. A formal arrangement with your creditors will be recorded on your credit file for 7 years, however, the government has recently introduced new laws which will become effective in 2014, which will force the credit reporting agencies to remove the listing from your credit file when you successfully complete your agreement. The average formal arrangement only lasts for between 3 to 5 years, so if all goes well your credit file could be clean within 3 to 5 years. More importantly you will become debt free as well!
If you have a poor credit record and a bundle of unpaid debts then call our personal debt consultants on 1800 676 598 to arrange a free debt assessment.