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Have you had a black mark against your credit history?

We stupidly bought a car on finance a few years ago, with a $30k balloon payment. At the time our business was doing well so we could afford it. Basically my partner has had a mental break down, we've gotten rid of all the staff, and everything has turned 180 degrees. The business is going backwards, costing us money. Our house deposit (only small anyway) has been eaten up to keep us afloat and now we can't afford the car repayments.
It's on finance so I don't think we're going to be able to sell. It's valued at $4k less than what's owing on it. We have a $15k tax debt so don't like our chances of consolidating or getting a personal loan to pay out the finance and then sell it.
We're thinking our only option is voluntarily repossession. This means we won't be able to buy a house for 7 years. We are early 30's. I'm freaking out! I'm so unbelievably stressed I can hardly breathe.
Has anyone had a black mark at this age and can offer your experience or advice?

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Answers (4)

There are community financial counsellors who are free to attend. I would advise going to see one asap. Take all the details you can provide with you, including a letter from your husband's doctor about his condition. The financial counsellor I attended was super helpful, first we worked out a comprehensive budget together based on what was happening at that time, then they called the people I had debts with (including the ATO) and set up payment arrangements for me. It took a few visits to the financial counsellor but it was well worth it. While I was on the payment arrangements I could make extra payments any time I wanted, and if I was unable to make a payment that week/fortnight, I just called them and explained the situation and that payment was not taken out - but it had to be a valid reason for that of course.

 Thank you, thank you, thank you! We were seriously feeling like we had nowhere to turn.

I hope everything worked out alright for you in the end?

helpful (1) 

You don't get a "black mark" you get a default, if you make a payment arrangement you won't get a default. Having one default wont mean you can't get a home loan for 7 years.

No but my now husband did. It meant we couldn't buy a house for the longest time but we're about to take the plunge now & win win the arse has fallen out of the market. Everything happens for a reason, it'll all work out in the end. Try not to freak out so much.

Idiot

  Thats constructive feedback for her.
Your parents must so proud!

helpful (1) 
 I feel like i want to up the stakes & the idiot commentor an asshole- lets just call it like it is sweetie
helpful (1)