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Interest on debt may cost us our house

Sep 12 2013 10:47
 Fin24 user Zintle says it’s frustrating knowing t

Fin24 user Zintle says it’s frustrating knowing that her credit health is poor. (Supplied)

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A Fin24 user fears she may lose her home even after being under debt review for some four years. She writes:

My husband and I are under debt review at the moment. When we went under debt review, our total debt was R710 000.
Now after paying for about four years, we've realised that we might still lose our house because the interest is piling up.

What can we do to recover from this?

We are not in a position to start over as we both get a small salary.

Friedl Kreuser, an attorney and manager at 6cents, a division of Summit Financial Partners, responds:

Have you discussed this with your debt counsellor?

If the interest is piling up, you should either increase your instalment on this account, or your debt counsellor should negotiate a lower interest rate.

If the credit provider is unwilling to reduce the interest rate further, your case should be referred to a magistrate’s court where the debt counsellor and the credit provider can each submit what they think are reasonable repayment terms.

Either way, something has to give – there’s no point making payments if the debt is just increasing.

Put some pressure on your debt counsellor to resolve the issue and, if they are not willing or able to resolve it, involve the National Credit Regulator.

 - Fin24

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