28 November 2012
Fri, 25 Jan 2008
by Iona Minton
I have debt totalling R150 000 comprised of amounts ranging from R3000 to R30 000.
I am unable to afford the monthly minimum payments, but pay a small amount regularly every month on each account. I have repeatedly communicated my situation with each creditor in writing without any answer from any of them.
Only a small percentage of the creditors continue to forward a monthly statement and I am regularly threatened with legal action by the others. What more can I do?
It is good that you try to pay each creditor something each month. However, you are still in breach of the agreement to pay back the full instalment each month. The creditors’ records will show that you are behind in your payments and eventually they will hand you over to a debt collection agency.
You need to take stock of your situation and establish whether you can realistically keep going on the same path while keeping afloat. The first step is to get a credit report. You can visit www.credithealth.co.za and for R50 they will send you a consolidated report from both credit bureaus. You will then be able to see if there are any judgements or adverse reports against your name that may affect your credit rating. You will see a section called ‘Delphi Score’, giving you a rating ranging from ‘excellent’ to ‘very poor’. If it’s poor or lower, your chances of getting credit are greatly diminished.
The reason I am telling you this is because it may be a good idea to consider debt counselling. If you tally up your monthly debt commitments and necessary expenses and this exceeds your income you will be a good candidate. Once you are under the supervision of a councillor they will renegotiate your debt and get the creditors off your back. You can find more information about debt counselling checkout the rest of this website.