MONEY CLINIC: I'm under debt review. How will lockdown affect my repayment order?

(iStock)
(iStock)

A Fin24 reader wants to know how the lockdown will affect his scheduled debt repayments.

He writes:

I’m currently under debt review. How will the national lockdown affect my monthly repayments as per order? 

Mark Bishop, Managing Member at Credit Clear responds:

Unfortunately, if you fail to pay any instalments under debt review, your creditors are entitled to exercise their rights to terminate the payment plan and proceed with legal action against you to enforce the rights in terms of the credit agreements.

What you need to do is urgently contact your debt counsellor and request them to apply to your creditors for an extension on the repayment term (Form 17.3) and communicate with your creditors accordingly. 

You will need to provide your debt counsellor with proof of your change of circumstances by supplying them with a letter from your company with regard to any change in salary over the lockdown period and, if required, bank statements. 

Should the creditors accept the application for an extension, they may extend the repayment terms by three months.  

Another option would be to claim on credit-linked insurance, if this is applicable. Naturally the credit-linked insurance must make provision for temporary loss of income as a benefit and, you must have met all other requirements in terms of the policy in order for a claim to be successful. 

This option can also be discussed with your debt counsellor.

*Credit Clear is a registered alternative dispute resolution agents with the NCR (Reg#NCRADRA6).  

Compiled by Allison Jeftha. 

  • Have a money problem that needs solving? Fin24 can help! Send your question to editor@fin24.com or find the Money Clinic box on the right of our homepage. 

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.

ZAR/USD
17.36
(+0.71)
ZAR/GBP
22.63
(+0.93)
ZAR/EUR
20.45
(+0.43)
ZAR/AUD
12.38
(+0.96)
ZAR/JPY
0.16
(+1.16)
Gold
1936.75
(+1.62)
Silver
25.39
(+2.26)
Platinum
929.00
(+0.92)
Brent Crude
44.46
(-1.09)
Palladium
2133.00
(+1.98)
All Share
57303.48
(+0.24)
Top 40
52987.07
(+0.29)
Financial 15
10189.99
(-0.25)
Industrial 25
76274.75
(+0.99)
Resource 10
58402.02
(-0.47)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 967 votes
It depends on how the funds are used.
74% - 6440 votes
No. We should have gotten the loan elsewhere.
15% - 1332 votes
Vote