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Credit Card Debt

Noel Whittaker | October 20 2004 | The Sydney Morning Herald & The Age (subscribe)

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.

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