Hint of the Week Competition
We are now giving away one 12 month membership per week to the person who donates the best tip to the Savings Vault. Everyone can enter. If you are already a member you win an extra 12 months added on to your existing membership.
This week Rachel P has won 12 months membership to the Savings Vault with this great hint:
We struck a deal with the bank and saved our credit rating!
Our family has learned that it always pays to negotiate, even in the toughest of situations. When our business failed the bank sold our house to cover our debts and the shortfall was still $125,000. We were in a position where I was working full time, my husband had got a part time job and we were in our 40's renting with three children to put through school. I thought that the only option was bankruptcy. However, instead, my clever husband contacted the bank and offered them $0.10c in the dollar to be paid back at $200 a fortnight or the bank could pay the costs to force us into bankruptcy as we could not afford to do it ourselves. From the bank's perspective, they could recoup a portion of the debt or pay money out to get nothing in return.
To our surprise, the bank accepted our offer and created a Deed of Settlement. So the end result was that we are paying back $12,500 without any further interest and there has been no default put on our credit rating. I don't think that many people realise that they can negotiate in such a manner and end up entering into either bankruptcy or a Part IX debt agreement (which are also listed on your credit rating) that can impact their financial situation for many years. Two years later we have paid off the bank and have been able to start saving for a house deposit at the same time. That $200 a fortnight we were paying to the bank now gets added to our fortnightly savings and we don't miss it as part of our budget.
When I talk to friends about this none of them ever thought that you could make that kind of offer to a bank as an individual. I thought that more people should know that there ARE steps you can take to ensure your credit rating remains clear.
The best way to win a membership is to write helpful, interesting, unique and error free hints. You need to include how much money you saved, how you saved it, what you did and how much you paid. The more detail you provide the more likely you are to win a 12 month membership.
You do not have to answer all the questions to enter the competition. Each hint entered is judged separately. If you send 5 hints. They will be considered 5 separate entries. Which means you have a much higher chance of winning by entering one or two top quality hints than if you entered twenty brief, vague tips. Quality is everything!
If you do not have an answer to a question, or it does not apply to you, please leave it blank.
Thanks for giving it a go. Good luck!