ARE YOU IN TROUBLE?
According to Didi Sebothoma, spokesperson for the National Credit Regulator (NCR), the following might indicate that you are in trouble: Receiving calls from credit providers because you’ve missed or have skipped payments. Missing repayment deadlines. Paying less than your monthly instalment. Receiving letters of demand and summons from credit providers. Borrowing money from friends and micro-lenders to pay monthly instalments. If you’ve been unsuccessful in negotiating reduced instalments with your credit provider, Sebothoma says that you might have to consider going under debt review. To do so, you have to contact a registered debt counsellor in your area or contact the NCR for assistance.
Debt review could be the only thing standing between you and bankruptcy, Sebothoma says. It could be the lifeline you’ve been hoping for, but it comes at a price.
“Once the consumer is under debt review, he can’t access credit for the duration of the debt review period until that debt is paid up. Once the debt is paid up, a debt counsellor will issue a debt clearance certificate for short-term credit within seven days. A consumer will thereafter be able to access credit,” he explains.