We are all aware that the volatile political landscape of South Africa has had a dire influence on the credit ratings adjusting our status to junk and we are officially also in recession. We as ordinary citizens cannot do much about it except to vote in the upcoming National Elections in 2019. However, what we can do is look after our own income with care.
What to do:
- Don’t buy anything new if you can have it repaired or bought second hand
- Don’t buy anything you don’t need (make a very clear distinction between want and need)
- Look out for coupons, discounts and member points
- Don’t buy food on an empty stomach
- Take your own lunch to work
- Make use of a lift club or do all trips at once or make use of public transport where possible
- Don’t use credit for essential living expenses
- Pay off your more expensive debt first (even an extra R50 per month will shorten the term of the contract)
- Don’t skip payments
- Don’t ignore letters from credit providers
If you are in trouble what to do:
- Make an arrangement with the particular credit provider before they take legal action ( you will be paying for that and additional interest will be added to the contractual balance remaining)
- Make an appointment with a debt counsellor to look at your budget, sometimes a fresh eye is all that is needed to allocate funds more efficiently
- If legal action has commenced, appoint a lawyer to assist you in addressing the matter, don’t ignore it, it will cost you
- Check your credit report regularly
- Check your statements regularly
- Ask a debt counsellor to look into reckless credit for you if you suspect that there is a possibility thereof
What is reckless credit:
Reckless credit is granted by a credit provider to a consumer who can actually not afford to repay the debt. If a credit provider has not done an affordability assessment that is reasonable, checked your repayment history with the credit bureaus, asked for 3 months banking statements from you that could be reckless. If the credit provider did this but it will make it difficult for you to make the payments to all your debt and pay for essential living costs, that might be reckless also. You can also directly refer reckless credit allegations to the NCR to investigate: www.ncr.org.za on form 29 emailed to email@example.com or phone them on 0860 627 627.
The court and/or National Consumer Tribunal can make findings regarding reckless credit. It can be either set aside, interest and costs set aside and you only pay back what actual money you owed or post pone payments to a future date for example. If you want more information regarding reckless credit, contact a reputable debt counsellor to assist you with this. Not all debt counsellors are experts in reckless credit, ask to see their court findings re reckless credit before appointing them to assist you with this. It is your right to ensure that the person assisting you knows what they are doing. It is time consuming and expert work.
If you are interested in requiring my services as a debt counsellor or to do a motivational talk about debt and the National Credit Act please feel free to contact me on (012) 330 0428, 078 031 4264, firstname.lastname@example.org, skype: reneemarais, Facebook: Debt Problems Solved and twitter: ReneeNCRDC1780