Debt does not have to be a life sentence

2011-12-03 15:06

In January, City Press and FNB helped Stanley to obtain a mortgage through FNB Housing Finance.

Stanley had previously experienced financial difficulties and had put himself under debt administration.

He had been struggling to obtain finance because, despite the fact that he had paid off his debts ahead of time, his name had not been removed from the bureaus.

Marius Marais, the chief executive for FNB Housing Finance said: “He showed us the evidence that he had resolved his judgment but it had just not been cleared by the credit bureau. This is a major complaint we often deal with, but if we are provided with the correct paperwork it is relatively easy to sort out.”

Marais said the bank focused more on current behaviour and frequency to see if the person was a serial offender.

In fact, Marais considered Stanley a low-risk customer despite his judgment.

He could well afford the loan – he had a deposit and he had demonstrated that he was the sort of person to honour his debts.

Stanley was provided with a home loan below the average lending rate for the division.

Stanley’s response:
I bought a property in Threerivers suburb in Vereeniging. The property was in a good area next to a school and near a business area, so it was a good investment.

FNB offered me a bond with a deposit of 10% and I also had to pay the legal cost of change of ownership.

I continued to save 20% of my salary. Some of the money that I received from my previous property I invested in RSA Retail Savings Bonds. I have also bought BEE shares from different companies for future investments.

My advice to readers is that if you have financial problems, seek help as soon as possible and learn from that mistake. Start to cut unnecessary expenses, save and invest for the future.

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