(03) 9020 2905People make out like debt is the “dark side” of the Jedi force of finances. Darth Vader snuggles up with debt at night, gently stroking it and whispering his bidding.
Bollocks. Love it or loathe it, debt greases the engine of global finances. Sure, some over-indulgence in recent years has been painful. Globally.
But we can’t live without it. Your ability to access debt will, likely, also be a big determinant of the wealth you create in your lifetime.
Hey! Did I hear some scoffing and spluttering?
Facts: Short of having Uncle Scrooge lobbing half a million into your account, most people can’t buy property without debt. And many other investment strategies are best suited to using “other people’s money”.
Having a “dirty” credit rating puts you in more trouble than David Hasselhoff on a bender.
Get a free copy of your credit report from (Veda or Dun & Bradstreet). Check it. Very carefully.
Coincidentally, yesterday I received my free credit report. There are a few errors on there – largely administrative. Phew. But there are two notes to be followed up.
Your credit score is critical for wealth creation. If you dream of buying a home, investment properties, or borrowing for your small business, then a bad credit file can cut out the best options and leave you swimming with sharks.
Repay the debts. Change your behaviours. Fix the blips. Sometimes companies don’t report that your debt has been repaid – they have a duty to do so. But it might require you to hound them until they do.
Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and principal adviser with Castellan Financial Consulting.