Self employed teacher Katie’s lesson in managing defaultsedit
Katie Batterham has recently been through a divorce, and is an experienced, self-employed teacher who works across a number of different schools. On bad advice from her solicitor, Katie held off on debt repayments until the divorce was finalised. Unfortunately, this resulted in five defaults on her credit file.
As part of her settlement, Katie retains the house in her name. She maintained the repayments on the mortgage and is hoping to access the equity in her home to pay out the defaults and the final settlement with her ex-husband. When going to the banks she was declined on account of the defaults listed against her.
What’s the solution?
With evidence of her teaching contracts and a good mortgage repayment history, Katie’s broker with RedZed was able to demonstrate the affordability and benefit of refinancing.
A number of these defaults were under $750. Two were significantly higher and only lodged recently. After taking Katie’s circumstances into account, she was assessed as qualifying under RedZed’s Refresh product. Thanks to RedZed, she was able to consolidate her debts and pay out her unpaid defaults.
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