Posted by: Angie | 2013/06/14 10:13
I have an astonishing amount of personal cash loans and am battling to repay. I do not want to go for review as it might impact on my husband as he is going to expand his business and we are married in community so we will both be assessed should he want to take a 2nd bond.
I have decided to resign and use my provident fund to pay every thing off. Is this a way out?
After paying up all the cash loans I will only be left with my car installment to pay.
I am 35yrs old and owe +/-R100 000 and am expecting to get R98 000 from my provident fund.
Please advise as I really don't have any money for my living expenses as all the money is going to debit orders.
I have never missed any payments so far.
Posted by: Moeshfieka Botha | 2013/06/14 11:50
You wont find a single financial adviser that will tell you
its a good idea to resign and use your provident fund to pay your debt.
Our country already has very high unemployment and the job market is
difficult. You might not be able to find another job soon. The
majority of people are also not making enough provision for their retirement as
it is, and using your provident fund means you will join this already large
part of society. However, this is a decision only you can make, weighing
up many factors relating to your personal situation, like will you be able to
find a job, how quickly will you be able to start saving for retirement again.
Then the big question is also, if you managed to get yourself into this position
once, what will prevent it from happening again.? And the second time you
wont have a provident fund to fall back one. I would suggest that you consult a debt counsellor. Debt counsellors can negotiate with creditors for lower instalments. Once you are paying lower amounts on your debt - you will have more money left for your living expenses. The fact that you have never missed a payment is a good thing. Should you opt for debt counselling, regular payments are vital.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers, and disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site.