Credit Card Debts Can Lead to Home Repossession

debt consolidation loan

Home Repossession

A Brisbane couple lost their home valued at $315,000 over a credit card debt of only $8000. They only found out that it went to auction after the home was sold for $20,000 at a bailiff’s auction.

Legal Aid Queensland (LAQ) says it is just one of several cases of debt collection companies moving to sell homes at bailiffs’ auctions to recover credit card debts of any amount.

Since November, LAQ has handled five such cases, negotiating with creditors and stopping the auctions at the last minute in four of them. In one case a debt collection company tried to sell a home over a debt of only $850.

It has been reported that some major banks and multinational lenders are allowing customers to increase their credit card limits by as much as 40%. The Congratulations, You’re Pre-Approved report, commissioned by the Consumer Action Law Centre, said banks and credit card providers were using psychological tactics to trick consumers. The report called for law makers to consider banning, or at least restricting the marketing of unsolicited credit card limit increase offers.

If you receive a letter from your credit card lender offering you an increase on your credit limit, we advise you to think of the repercussions of getting in over your head before accepting. If you are currently struggling with debt there are alternative solutions to having your house repossessed.

We may have a debt consolidation option tailored to your situation. If you have debts of $10,000 or more, don’t wait another minute. Pick up the phone and call us today on 1300 138 188 and receive a free consultation with one of our debt consultants.

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