Being in a position where you are struggling with debt is already stressful. Now add the fear of losing an asset like your vehicle due to non-payment, and it is a recipe for financial disaster.
But what if you have already enlisted the help of a debt solution such as debt counselling – do you still risk losing your vehicle?
You can rest assured the answer is no.
One of the many perks of undergoing the debt counselling process is that your assets, such as your home and your car, are protected.
Your debt counsellor will negotiate with your creditors on your behalf to implement a manageable repayment plan where the interest rates on your various credit agreements have been lowered, which means you pay less.
This plan also allows you to systematically pay off your debts – including your car instalments – until you are debt-free.
This also means that your debt counsellor now acts as the go-between for you and your creditors, who are no longer allowed to harass you with incessant phone calls and payment notifications.
But there is a catch. If you have been served with a Section 129 notice or a Letter of Demand and you do not apply for debt counselling within 10 days after receiving that notice, you may still be at risk of having your car repossessed.
You are also left exposed if you have failed to hold up your side of the debt counselling process by missing payments.
However, this can all be avoided.
Ensure that you sign up and enlist the assistance of a trusted debt counselling provider as soon as you realise that you’re unable to manage your debt effectively. Following that, it is equally important that you stick to the debt counselling agreement and ensure that payments are made on time.
We are dedicated to helping you rehabilitate your debt, while holding on to all your assets, in the safest most manageable way possible.
Also read: Understanding a section 129 notice and what to do when you receive one.