Johannesburg - If you are struggling to repay your debt one of the options to follow is to approach a credit provider to negotiate the restructuring of your debt obligations, said National Debt Mediation Association (NDMA) CEO Magauta Mphahlele.
However, she pointed out that consumers often don’t know how to engage with credit providers.
“A lot of time they go through call centres where the call centre agents are not trained enough to be able to give them the right information.
“A lot of the time the consumer does not do a proper budget, which looks at the income and expenses and then make a reasonable and sustainable offer to the credit providers,” said Mphahlele.
She said the NDMA assist consumers with structuring a proper budget and then help them with engaging with the credit provider.
“At the end of that process what can happen is that the credit provider can agree to reduce the monthly installment, they will confirm that in writing, and then the consumer can then continue to pay the reduced installment.”
She said this will result in the consumers being listed at the credit bureau as being a slow payer, but added that it’s not the kind of listing stating that they are under mediation.
Watch the full interview: