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Post by RCMPhereicome on Aug 18, 2003 21:10:29 GMT -5
I've passed the RPAT, PARE, and sent in my package two weeks ago to RCMP E division. What is really worrying me is the fact that I am currently in a Lot of debt. I am a recent university graduate and over the last five years, I've accumulated about $40,000 in student loan and credit card debt. I am really starting to lose sleep over this since I think they might think I have bad money management skills. Has anyone ever been rejected due to debt problems. I have never defaulted on bill payments or anything like that and my credit is still good. Should I really worry?  Thanks for any input.... |
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Post by therecruit1 on Aug 18, 2003 21:31:34 GMT -5
When I did my security interview they seemed more concerned about the fact that I had a credit card go to collections while I was in university (ten years ago) than anything else.
I think they are concerned more about how you are spending your money and are you able to keep up with your payments. They have to expect that students in university are going to have some measure of debt. But they may have a problem if you spend your money on needless things. If I were you I would do whatever it takes to show you are taking steps to reduce your debt load and that you have good money management skills. I don't think you will have a problem if you do this.
There has been people deferred for debt issues from this board who may be better able to answer this.
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Post by guestguestguest on Aug 18, 2003 21:36:47 GMT -5
According to a recruiting sergeant that i spoke with, they're mainly looking for "bad debt," so as long you're paying off your debt accordingly and on time, i think you should do fine. I am basically 100.000 dollars in debt with the bank (mortgage for my house), when i asked whether it would pose a problem at all, the sergeant laughed and said as long i don't have any "bad debt" then i'll be fine.
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Post by RCMPhereicome on Aug 18, 2003 21:51:41 GMT -5
Ofcourse a mortgage is an investment debt and it should be fine. But What do you mean by "bad Debt"...you mean money borrowed from the mob to gamble with... or buying "unnecessary" things such as extra clothes etc...?
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Post by Jag on Aug 18, 2003 22:11:01 GMT -5
RCMPHereicome,
Welcome to the board.
Regarding your questions, I don't really know if I am the one with the answer.
However, as a former Banker I can tell you that they might look at the following things:
1. What percentage of that $40 000 is student loan.Credit card loans are not so good.
They are harder to pay-off because of the higher interest rates. When I was working for the bank, student loans were not reported on the bureau, unless there was a default. However, do not withhold the Student loans from the RCMP.
2. I am sure they going to look into your payment history.
3. They are might look at your net assets. How much you own minus what you owe.
These are some of suggestions. I would try to pay down the credit card loans. Either get a line of credit or a personal loan. Why? Simply the interest is lower and there for you will make more of an impact into the actual amount. However, if you get declined by one institution don't go shopping to another one. Your "Beacon Score" will come down.
Secondly, I would request a personal credit bureau report. They are free (once a year) and you can request them by mail. You can get a credit report from Equifax Canada. The report will show your payment history as reported by your creditors. This way you can request correction on any negative information that might be on your bureau.
Most importantly don't worry about anything that is beyond your control! Have fun with the process.
Jag
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Post by guestguestguest on Aug 18, 2003 22:11:15 GMT -5
I was a bit confused as well when the sergeant said "bad debt"... don't quote me, but i think it's money that you owe that will likely remain uncollectable and be written off. You could check it out on the internet to get a better definition, or better yet, you could e-mail or call the recruiter and ask him/her yourself. You will definately get a more accurate response by contacting a recruiter, they're going to know about your debt issues anyway when you apply so might as well ask early to get that peace of mind.
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Post by RCMPhereicome on Aug 18, 2003 22:27:12 GMT -5
I have a line of credit with my bank for up to $30000. So you think I should use that to pay off all my credit cards???
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Post by Jag on Aug 18, 2003 22:47:12 GMT -5
For a minute forget about the RCMP.
It would only make sense to pay the lowest mark up on any money you have borrowed. Typical credit card has an interest rate of 20 to 22 percent per annum. Typical credit line has an interest rate of 6 to 8 percent. Please check your current interest rate with your bank. That is over a 50 percent discount on the cost of borrowing. You will pay off your loan quicker because more of the money is going towards your borrowed amount rather than the interest. Key is to stay away from racking up credit card debits after you consolidate. Of course, pay down your credit line as quickly as you can.
Bad debts are simply the loans you have not paid. Or refuse to pay. So called negative information on the bureau.
;)Jag
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Post by Jag on Aug 19, 2003 10:42:50 GMT -5
Want to know what is on your credit bureau? Here is a link that will help you print-off a request for your personal credit report. www.equifax.com/EFX_Canada/consumer_information_centre/ownreport_e.htmlFill-out the form and they will mail your a free report by mail. You will need a copy of two pieces of idea and proof of address. Of course you could choose to get the online version and pay. By mail it usually takes about ten working days. Hope this is useful! Jag |
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Post by RCMPhereicome on Aug 20, 2003 2:21:19 GMT -5
Thanks...  |
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Post by journey2cps-redux on Aug 21, 2003 16:49:33 GMT -5
Back to the debt affecting your application....I was also told that it was nothing to be concerned about as long as I was paying things off with my current debt load, and my debt to income ratio was below 30% I would be fine...past credit history would be considered but not too big of a concern, even though I had filed for bankruptcy over 2 years ago (Bad impulse buyer when i was younger). Well the security clearance unit DID NOT agree with that. due to the fact that I had not been discharged for two years, I was deemed a security risk...in otherwords they thought I would take bribes/steal money, etc. to help get more income...Nevermind that I currently have over $2000 of disposible income every month and a bunch saved in the bank. I "obviously" didn't learn my lesson yet, since it has't been two years....
Hmm, re-reading that I sound really bitter, don't I...I'm still a little upset, and I don't want to discourage you...but I'm not gonna blow sunshine up yer @$$ either. If you haven't heard both sides of a story, you don't know anything. My 2 cents, but if your bank still gave you a $30,000 credit line, with $40,000 in debts, then I would think that you are not a "bad credit" type of individual.
I wish you sucess though.
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Post by RCMPhereicome on Aug 21, 2003 17:43:06 GMT -5
I have NEVER defaulted on a payment of any sort and I have a decent paying job. I've always made payments on time and I only got into credit card debt due to some personal and family misfortune that led to my parents' loss of income. Thats when I was forced to take some of the burden and all this started. I got my credit report and it looks fine. I'm really fresh out of school and I was worried that they might want me to settle down and pay off some debt before considering me...But we'll see what happens...
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