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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
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
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.
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
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
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.
