Today I was reading this article that was talking about how it was more common for kids to stay at home well into their late 20’s now more than ever, and although it’s nice not having an empty nest there are downsides. More often than not these down falls are in the realm of area money, credit cards or loans where Mum and Dad are helping with financial troubles.
The problem, I read, is that the parents would guarantee their ‘young adults’ mobile phone plan, car loan or credit card and then their kids would default on payments, effectively ruining their credit score and their parents credit score for more than 5 years. A Sunshine Coast team had found a solution via an online credit repair service which removes black marks from credit files without the expenses of accountants or lawyers and can be done from your kids mobile phone.
Sunshine Coast Senior Credit Repair Consultant Steve Foote was reported saying that “The Online Credit Reboot App is a DIY approach that allows young adults to remove black credit marks, such as an unpaid Telco bill, from a mobile phone. Young people who take out something as simple as a mobile phone plan don’t realise that if they default on payments they can be banned from getting further loans or plans for more than five years, even if they pay loan back.”
“It’s easy for kids to get into trouble but this DIY online credit repair service allows them to sort out their own mess without leaning on Mum and Dad. It also gives them a sense of independence and control over their lives that may have been missing up until this point. Most young people put their head in the sand when comes to repairing their credit because they think it’s too complex, expensive or both. In the past, that was probably true, by this App changes all of that. This online credit repair was created by a team of ex-debt collectors and is a first for Australia.”
“The software runs more than 80 different tests on a credit file using the Credit Reporting Code to find errors. If it finds errors, there is a greater than 90% chance the default will be removed. The good news is that consumers do not need to payout the debt prior to their credit file being cleaned. If the file was black marked in error, it should be removed regardless if it’s paid or unpaid.”
I also found that other studies show that one in 10 Australians have black marks on their credit file, however national research of personal insolvency activity by the Australia Financial Service Association (AFSA) shows the Sunshine Coast is listed as one of the higher credit delinquency areas in the country and surpasses the national average.
In the words of Mr. Foote I must say that “You get a sense those things that just aren’t right. Many young adults on the Sunshine coast have been financially disadvantaged through incorrectly reported credit defaults, we would like to help them through this new online credit repair service.” And I cannot agree more.