How can I pay it off?
Q.
I have just obtained my credit history as I'm keen to purchase a
unit. I have learned that I have a credit card debt of $2500 which
has been long overlooked and forgotten due to a change in address.
Obviously the credit card company didn't change my address as I
didn't receive any further correspondence from them although I had
another card through them which was always paid in full and had
it's address changed with no problem. I desperately wish to clear
this debt and resolve the matter so I can apply for a loan of
approximately $156,000. Is there any way I can still get my loan
without having to go through one of the "other" lenders who will
charge high rates?
A.
I assume you have a substantial deposit. If this is correct, why
not use $2500 of the money to pay off the debt and clear your
record. It may mean you'll have to borrow an extra $2500 but the
interest will be tax deductible and you won't be trapped with a
higher rate home loan.