Credit Default. What does that mean now (in australia)?

Ok here is the run down.

I am 20. I had an awesome state government job, lived in an inner city apartment etc. But I didnt think a rainy day (or personal crap) could break me financially.

I was unable to pay for a few months my overlimit maxed credit card and phone bill

So Here I am. I rang up to organise. $2k - 2.5k credit card was sold off though they have not recieved the account yet so its brand new. The $1300 phone debt is being sold off tomorrow if i dont pay in full (yeah right)

So im looking at 4 k of debt. Im pregnant single.

Credit card buyer chick said it is listed as a default but she%26#039;ll call me when the account arrives. does this mean I am screwed with credit rating?

From this info, whats the deal with credit rating and how long it will be bad etc??

If I pay off the full $4k in 6 months (payments plus baby bonus money) will it get me ratin bak quicker

Just any financial advice would be appreciated

just lookin at how long ill hold a bad ratin for???

Credit Default. What does that mean now (in australia)?

Once listed as a default you will be listed on BayCorp (the national default register) for 5-7 years. Even if you paid it off in full next week, that listing will remain for the full 5-7 years with a note added of the date you paid it off. So I suggest that if you are defintely listed as a default save your money for your baby and make a minimum arrangement with them to pay it of over a year or two. Even though your BayCorp default will look good if payment is made in full quicker, it is unlikely that any banks will give you another line of credit within the next few years. After the 5-7 year period is expired, all listings are removed (whether you have made any payments or not) and you start afresh again. So consider keeping your BB (or part of it) and make minimum arrangements if the companies insist on defaulting you. If not defaulting you yet, then agree to a comfortable payment plan to try and save your credit rating.

Credit Default. What does that mean now (in australia)?

Being pregnant and single shouldn%26#039;t be a badge of honor.

Secondly, you have lost any chance of getting a home loan, unless you can pay these bills off.

One other thing you can do to fix this is call the Telecommunication Ombudsman listed in the white pages and say you have tried to sort it out and they have been unhelpful. No evidence needed. They will direct you to the phone companies corporate office and corporate can assist you in a minmum payment plan.

The credit card, contact the financial instituation ask for the phone number for complaints, explain your issue and consider lying about the limit you believe was offered to you. Failing that, suggest a debt reduction plan to the credit card company and when they refuse ask how to make a complaint to the Banking and Financial Services Ombudsman.

No company will lodge a bad credit rating while you have a complaint with the Ombudsman%26#039;s office.

Credit Default. What does that mean now (in australia)?

Sorry to say but the debt is there untill its paid off, if you can use the bb money for that then try but ring up centrelink and they will put you in touch with some government agencies that will be able to help out in other forms eg office of housing accomodation, rent more affordable, budgeting tips and so on, if i were you i would hold on to the baby bonus money for in case of emergency with bubs i have a 16 month old and at times it can financially be tough but we get through without credit cards and so on.

and if you tell the credit company the most they can make you pay on your soon to be budget is 20 a fortnight each, so there is that also, but ring up salvos as well, they can all help in the right direction,

good luck