Pro’s & Cons of Financial Hardship

Posted on: 27 Oct 2018

Hardship application pro’s:
1. The banks may reduce or nullify your interest rate for a prescribe term, i.e. 3 months
2. Lowered payment arrangement for the same term
3. Short term avoidance of ongoing collection activity
4. Customer has time to trade their way through their problems

Hardship application cons:
1. Short term solution only
2. Increase likelihood of a Veda credit rating default
3. Hardship offers can just as easily be pulled from the customer, exposing them to sudden and possible vigorous collection activity. Hardship applications is a false economy, once taken off the hardship program they face extensive arrears which then must be brought up to date