Finweek English Edition - - MONEY -

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.

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