'Dying' due to R1.5m debt | Fin24
 
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'Dying' due to R1.5m debt

Jan 28 2015 13:47

A Fin24 user feels as if he is "dying" under the weight of his debt of more than a million rand. He writes:

I have debt of about R1.5m. Please, how can I be free of this huge debt. It is killing me. Thank you.

Renée Marais, an independent debt counsellor (NCRDC1780), responds:

Thank you for your question. It does not matter what the amount is that you owe, the first step is to acknowledge that you have a problem - like you have done now by seeking expert advice.

Please contact a registered debt counsellor. Make sure the person is available in your area and that you can meet him or her face to face.

It is very important to note that only a registered debt counsellor may provide advice and assistance regarding debt counselling.

No call center agent who does not have a personal NCRDC number registered on the website of the National Credit Regulator (NCR) may offer their services. It is against the law to do so in terms of section 44(2).

The NCR has also sent out a circular in January 2015, which prohibits this practice.

A debt counsellor will look at your financial situation and take into account your income and your essential living expenses and work out a tailor-made repayment plan within the parameters of the law to assist you.

Debt counselling does not absolve you from your debt, but provides a platform where you can pay off your debt in a responsible manner. It will mean cutting back on some expenses, but at least you would be in a position to honour your debt and provide for your family.

Debt review is a voluntary process and does not involve a rehabilitation period.

Another alternative is sequestration, which can only be done by a qualified lawyer and involves a rehabilitation period.

Whatever you do, please to not ignore your debt. Credit providers can and will take legal action, which will not only impair your credit record, but you will also be liable for the legal costs and sometimes the consequences will result in you either losing your property and/or garnishee orders against your salary.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

debt counselling  |  money  |  money clinic  |  debt
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