User can barely survive, considers giving car back

A Fin24 user, who can barely survive as she struggles to manage her finances, seeks advice on how to ease the debt burden.

She writes: "I’m sitting on a financial bomb waiting to explode. I bought a car in August 2014 and now looking at my car repayments, insurance, rent and other things I have to pay from my nett salary of R8 500, I can barely survive. Should I consider taking back the car to the dealership and consider getting a less expensive car or just not have one at all?"

If a return of the vehicle to the bank is the only option the process in short is: the bank will sell it (usually on auction). Whatever the price paid for the vehicle will be deducted from the contractual amount you owe at that time and you will still be liable to pay the shortfall.   

Please contact a debt counsellor to advise you on the best way forward. It is not necessarily the right thing to do to return the vehicle for if you purchased the vehicle in 2014 you are two years into the contract.

READ: Debt-ridden single mom of three seeks advice

Unfortunately I don't know what the original term and installments are and what your disposable income is.  A Debt Counsellor (DC) can possibly rearrange your debt or assist you in reaching an agreement with the creditor who financed the bank.

Debt counsellors however cannot refinance the debt and the debt review process will have to be used as prescribed in the law if that is the option you choose.  

Please see the DC, don't google a DC and speak to a call centre agent, find a debt counsellor on the National Credit Regulator website (www.ncr.org.za read the drop down menu to find a DC in your area) and make an appointment to see the DC face to face for a frank discussion. 

How to know if you are indeed speaking to a registered debt counsellor? When at their office ask to see their NCRDC registration certificate and check that the person you are speaking to is indeed the registered DC.  

ALSO READ

How the debt review process works and what to do to quit

Debt counselling vs debt consolidation

The workings of debt mediation

*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.

Read Fin24's top stories trending on Twitter: Fin24’s top stories