Long term effects of bad debt management
Your credit report will include a detailed account of information related to your overall debt. It will show any delays that you have made with payments along with any notes that you may have added to explain why payments were late. For example, you may have run up a large debt on your mail order catalogue because you were the victim of identity theft or perhaps you were charged for items that you have previously returned.
If you have no valid excuse for late or missed payments, this will result in a negative light on your record. In the past, a poor credit rating meant that it was virtually impossible to obtain credit. However, these days, there are many unscrupulous lenders who will review your bad credit in a positive light as it will enable them to offer you loans at over inflated interest rates.
Do not be tempted by these people who are waiting to take advantage of you. Borrowing from such a lender will take you years to simply pay off just the interest charges, this is before you even begin to tackle the initial amount that you borrowed.
Many of these loans are offered with nothing to pay for up to five months. Do not be mislead by the notion that within five months you will obtain a better job, receive a windfall or inherit millions from a rich ancestor in New Zealand, as these things never happen when you need them the most. Even if they did, you would still be legally bound to pay the interest that you signed for. The only way that these creditors will release you from this agreement, is by charging a huge settlement fee.
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Debt Advice News posted on 31/05/2007 07:04:15
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