Every day companies reject thousands of loan applications. Wonga’s CEO Kevin Hurwitz admits that the short term loan provider rejects between 65-75% of all new customers. So if you have received a rejection letter you are not alone.
28 November 2012
A surge of applications for Debt Review are expected in July as consumers feel the excitement of the world cup and decide to splurge on tickets, alcohol and fun times. With real consumer spending falling by 3.1 percent last year, according to the Bureau of Economic Research (BER), this is not expected to be the case during world cup fever of 2010.
Luke Hirst, MD of Debt experts DebtBusters, says,’ South African consumers need to stay diligent during this exciting time and make sure that once all the festivities are over, they can afford their monthly debt obligations. While in July, banks may see more consumers defaulting on their home loan payments, we at DebtBusters are constantly reminding our clients of the consequences of defaulting.’
Missing a payment whilst under Debt Review has serious consequences and according to Hirst this is most common during holiday seasons like Christmas and other exciting events. Hirst continues to say, ‘South Africans under debt review need to realise that they have been thrown a lifeline. By agreeing to pay a reasonable amount each month you can avoid repossession of assets and legal proceedings.’
The credit providers are also quite rightly tightening up on terminations on irregular payers. If a consumer under debt review misses a monthly payment, the credit provider will terminate their debt review and take them to court. The National Credit Regulator has gone so far as to warn consumers not to spend recklessly during the FIFA World Cup as this could plunge them further into debt.