Debt stress can be very daunting. Sometimes life happens and despite your best efforts, you simply cannot keep up your personal loan repayments. The good news is that there are ways to get debt relief.
You should always talk to your credit provider to make a payment arrangement as soon as you realise that you may default on your loan repayments. In most cases, your lending company will help you with a debt management plan to assist you in managing your loans. It is in its best interest for you to keep paying – even if it is a reduced amount. In extreme cases, when you cannot come to an agreement with your credit provider, you can call on legal help.
There are two legal debt relief processes available to South Africans. These options are debt administration and debt counselling.
If your total debt is less than R50 000, you can apply to a court to be placed under debt administration. Your creditors can attend your hearing. They may question you about your assets and standard of living. The issue of cutting down on expenses may be discussed as well. The court may order you to sell certain assets before proceeding with administration.
In theory, an administration order should last five years. However, because the amount you owe can increase due to interest charges, an order can last for up to 10 years.
Debt counselling is when a debt counsellor helps you to manage your money and negotiates new payment plans with your credit providers on your behalf.
Before you seek debt administration or debt counselling to alleviate your debt stress, consider whether you might be able to apply for a debt consolidation loan.
A debt consolidation loan gives you the opportunity to combine all of your debt and loans into one consolidated loan which you apply for from a single, reputable credit provider such as Bayport Financial Services. The consolidation loan offers one single loan repayment, which means that you are likely to pay a far lower interest rate at repayment terms that are manageable by you.
Should you wish to discuss the various debt management and credit options available to you, contact a financial wellness consultant at Bayport Financial Services who will guide you through the process of applying for a personal loan responsibly.Go back