Anyone know if Centrelink debts are visible by the banks?

Is this a debt that should be taken care of before refinancing or do the banks not have visibility into this type of debt?

 

No they are not directly visable. But does such a debt appear on your credit file, payslips etc?

 

Not visible nor can they be sent to a debt collector (yet).

 

There's a lot that's not directly visible to the banks. You could also not declare kids, for eg, but it's not recommended.

 

If your on a repayment plan it may come up on statements provided. Otherwise, may not be able to be 'seen'. Should be disclosed though.

 

......or are you planning to lie on your loan application?

 

Nope asking for a friend. I haven't had to use CL for long time (not that there's any shame in it).

They've allowed her to pay a 6k debt, either up front or $15 a fortnight, no interest...which sounds to me like the deal of the century. The only question will be when it comes time to refinance in 5 years, should she pay down the remaining amount or continue with this crazy good "loan".

 

I would think that if this 6k CL debt will throw her out of servicing maybe best stick with where she is.

 

I'd keep it as long as possible. Adding $15 a fortnight into servicing is unlikely to kill it. Cheapest debt ever!