MONEY CLINIC | I defaulted under debt review. I now have a net income of R12k. What do I do?

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It is important for consumers to know there is no such thing as being blacklisted (as is referred to by this consumer)  says debt expert Benay Sager.
It is important for consumers to know there is no such thing as being blacklisted (as is referred to by this consumer) says debt expert Benay Sager.

A Fin24 reader defaulted on his repayments while under debt review. With money to spare after his salary deductions, he wants to know the way forward.

He writes:

I bought a car in 2011. In 2014 things just went financially wrong. I approached a debt counsellor, and I was put on debt review. I was then dismissed in July 2015 by the company I worked for, and they took my provident fund because they sent me to UJ (the University of Johannesburg) for two years.

In 2015 September, I could not pay the debt counselling company on account of my dismissal. I reported the matter to the debt review company and we agreed that after three months I will get my provident fund, then pay and settle my accounts; unfortunately the company only paid me my balance.

Now, I'm still blacklisted because the car was repossessed and I defaulted on debt review, so I can't move forward. How can I be helped? I'm now working - earning R12 000 after deductions.

Benay Sager, Chief Operating Officer at DebtBustersresponds:  

Getting a car repossessed is always difficult to manage, and we feel for this consumer. It is important for consumers to know there is no such thing as being blacklisted (as is referred to by this consumer), but rather lenders would be reluctant to lend to individuals who do not have an attractive credit record.

In this case, the best course of action would be to find out whether the debt review process can be re-initiated.

It is not fully clear what the issue is here, but sounds like the individual needs to go back to the original debt counsellor and find out where the process was left off, and figure out whether the process can continue of paying off or paying down the debt, so that over time, the credit record could be improved. 

Compiled by Allison Jeftha. 

  • Questions may be edited for brevity and clarity.

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