The past three months of the national lockdown have been an absolute nightmare for the whole country. Everyone’s freedom is limited, confined to our homes we dread the contamination of the COVID19 – Virus. The published statistics of the rising death toll and positive cases are the cause of the widespread fear and panic among the communities. We have become so vulnerable with many poor families still waiting for food parcels from the government. Families have to cope with homeschooling, working from home, caught up in the same space with each other every day with no breakaway or escape. Companies that could not survive the impact of no business or income had to let their employees go. The lucky ones that had some form of budget, could only afford a portion of all salaries. Meaning the majority of the monthly debt of thousands of people, could not be covered with the little amounts of money received. Until then the insecurity of earning a normal income soon caused the assumable stress of losing assets and getting legally defaulted at court, once the creditors’ payment vacation expires.
Manage your debt and plan ahead
During this time of the unexpected closure of businesses and minimised salary pay-outs. The creditors are aware of it all and will consider a payment holiday on your monthly premiums on their terms and conditions. The credit history of the applicants and the current work situation are the determining factors of their decision but an overall two to three month’s extension was allowed across board. The mentioned debt relief is only a temporary and the consumers have to plan ahead with the little budget they have. Once the time lapsed, the new increased payments will take effect on whether you can afford it or not. The creditor will keep their interests, service fees and insurance covered and calculated on the outstanding balance taking the grace period into their calculations. So if your budget cannot afford it, you will fall behind. When you have reached the expired term of the payments relief, its best not to wait until the last day, start early enough to deal with the challenges. You don’t want to lose your home or your vehicle and face the repossession of your other assets. We are not in control of what is happening to us during the lockdown, but we are in control of how we handle it.
Debt Centre can help consumers that need immediate assistance.
When you realise in advance that you will not be able to afford the original instalments you’ll need the immediate services of a registered debt counsellor. Ignoring the problem is not an option. Your creditors are not going to extend the payment grace period any further, as there are laws in place that give them the right to proceed with legal action should the debtor remain in default. Level three is opening 1 June, many businesses of various sectors will reopen while other sectors will remain closed. Many workers waiting for level two and level one for clearance to open before they can go back to their jobs. Those companies reopening will help the economy rebooting and many employees can return to work, bear in mind that many won’t be earning their full salaries and just be too happy for the reduced pay offers. It will take a while for industries that survived to absorb the financial losses of the past few months. So debtors must prepare that the financial difficulty is far from over, and could be with them for some time into the future months to come.
Our mandate
Here at Debt Centre are dedicated to fight for your rights, protect debtors assets and save you money on your debt payments in the process. Being a registered debt counselling company, with 13 years of experience with a well-established reference at the National Credit Regulator. We assist consumers that can no longer afford their debt repayment agreements on the due dates or remain in default with their payments. Our role is to intervene and represent consumers by negotiating new payment plans and refer the application to the court and enforce Section 86 of the National Credit Act 34 of 2005 when the applicants are found to be over-indebted. We adhere to the strict Credit ACT of the Law to protect the debtor’s rights and assets during the COVID19 time and the legal challenges they are facing.
Consumers could enjoy a further payment holiday should they qualify for that debt relief.
Registered Debt Review practitioners we can negotiate reduced contractual interest rates with ALL creditors, using various proposal payment plans that can suit both the consumer and the creditors best. Savings on the debt repayment cost will benefit the household budget, which will ensure there could be enough cash flow for the basic essential needs to cover day to day living costs of a family, individual or living partnership.
Our new Debt assessment Calculator: https://www.debtcenter.co.za/financial-debt-calculator/
We launched our new user-friendly financial calculator that aids consumers to do a quick online debt assessment either on a mobile device with data, or a desktop or laptop computer that is connected to the internet. This assessment will help determine whether the consumers are over-indebted or not.
Visit the above-mentioned link and follow the prompts, this is a great tool that can be used to determine where personal finances are heading and whether the individual needs immediate assistance. Our research aided us getting this platform up and running to benefit struggling consumers with an easy and reliable tool that protects personal information and privacy, with a secure link. A consumer with access to this calculator has a better understanding of their financial situation and appreciate getting help sooner when struggling to pay creditors by the next pay-day.
Over-indebted consumers should not ignore or delay the inevitable it is best to contact us as soon as possible. This will enable our dedicated debt management team to start the process, secure the protection of assets and talk to the relevant creditors.
The In Duplum Rule
Under debt review, the statutory in duplum rule ensures that interest stops running if it exceeds the outstanding principal debt. By gapping the amount of interest that can be charged by creditors, consumers are able to pay less and exit debt review sooner. For example, if your default balance is R100,000 the maximum amount that you would pay back under debt review is R200,000 over 5 years with zero interest on your account.
How to cope during the lockdown period
We are more or less a week away from the Level 3-phase of the government’s restrictions. We would like to share some helpful ideas to stay occupied and healthy while we wait. Normal exercises in and around the house will release the good endorphin hormones that helps with stress and depression. It keeps the blood circulation healthy and the muscles fit. Venturing outdoors, it is a good idea to invest in a face shield that will allow enough fresh air during your exercise routine that will prevent the build-up of carbon dioxides in your mask and risk you from breathing it into your lungs with life-threatening consequences.. If you have not done any running for the past three months, it will be a good idea to chat with a fitness trainer and prevent any severe damage to your lungs while exercising wearing a face mask or a face shield. Look after yourself and take it easy when starting with fitness schedules in level three from 1 June. Venture outside into your garden and do some gardening if you are privileged enough to have a private garden on your property. A nice gesture is to plant seeds of vegetables to grow and harvest for the kitchen. Recommend a maintenance water duty chart for the family to take in part in the caring of the growing crops, this is a good way to get the family involved. Find that old jersey you haven’t finished and get the knitting out, get creative and learn to make face masks if possible. It is good to stay busy with creative arts and handy work to stimulate one’s mind and find a place to escape when things get too much. Some families rediscover each other’s company and make good use of the gatherings around the kitchen or dining table at mealtimes. A nice way of dealing with stress is to write it down and share your frustrations with each other, rebuilding family ties and comfort one another.
In conclusion
The sudden turn of events and the way we feel exposed to the uncertainty of the weeks ahead, keep us all down in despair. Some communities are affected worse than others, but the key factor is to face what’s coming and to survive. This blog should give you guidance and our Debt Calculator can help you to take action. You always have options and the right to protect your assets, Debt Centre is there for you when you need us the most.
Message from the author:
The shock of the past three months will be with us for quite a while and leave many families in destitute. Let us support each other, physically and mentally. A kind word of hope or phone calls to talk to one another, strengthen the morality in all of us to keep going. We pray for the silver lining at the end of this nightmare. Stay healthy and keep the faith until next time. God bless.
