Does a Debt Agreement or a Personal Insolvency Agreement affect your credit rating?

Are you thinking about entering into a Debt Agreement or Personal Insolvency Agreement, but worried if it will affect your credit rating?

The short answer is yes. A Debt Agreement or Personal Insolvency Agreement is going to have an impact on your credit file. Entering into such an agreement is an event that will be recorded on your credit file for a period of seven (7) years, during which time you may find it difficult to get access credit including, obtaining a credit card, car loan, house loan or any other type of credit.

This shouldn’t deter you though if you are really struggling to pay your debts.

The reality is that your credit file will most likely already be marked with defaults, for late payments, court judgements or even refused credit applications etc. So in truth the agreement will not make your credit file any worse than it is already.

The best thing to remember is that even if you enter into an agreement it will only be listed for seven (7) years after which time all defaults on your file (including the notation for your agreement) will be removed from your file. That being the case it is best to get the “clocking ticking” now rather than wasting more time struggling with debt and having an impaired credit file.

If you are worried about your credit file and want to understand how a Debt Agreement or Personal Insolvency Agreement will affect your credit file it is best that you give our personal debt advisors a call to discuss. Call today on 1800 98 10 70.