I can’t for the life me wonder why someone would be willing to destroy their credit rating for an unpaid debt. Being a finance broker I know the damage this does to your credit rating. Unpaid debts Sit there for 7 years then can be sold to be re listed for a further 3 years. Why would you do that it’s life changing. It means your stuck with none conforming banks at high interest rates. Most none conforming banks will insist the debt is paid when you refinance your home anyway. Unfortunately So many people are finance illiterate. Then it shows a a paid debt it’s takes years to fix bad credit. Late payments also show on your credit history in Australia.
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