According to debt-review experts DebtSafe (www.debtsafe.co.za), people often ask them what they should do if they find themselves unemployed and in debt.
‘We receive numerous queries about people who lose their jobs and who are uncertain of what will happen to their debt – they are scared that they will lose everything,’ says Wikus Olivier, debt-management expert at DebtSafe.
Tell your bank or credit provider
‘If you are retrenched, you should immediately send a letter of confirmation of retrenchment written by your employer to the bank or credit provider to arrange an alternative repayment schedule,’ advises Olivier.
Pay the credit provider as much as you can afford and keep looking for a job
A summons will only be served to you after a few months. After you receive a summons, it’s imperative that you don’t miss the court appearance. When you’re in court, explain your situation and ask for three to five months’ breathing space to find a job. Your assets cannot be repossessed without a court order.
Keep a written record of all correspondence with the bank and sheriff
In this way you can show the judge that you have been trying to get out of debt or have been trying to make a plan.
And if you are fortunate enough to have a job right now? ‘Try to save as much money as possible every month. The ideal situation is to have enough money saved to get you through at least four months when you don’t have an income,’ advises Olivier.
The bottom line is, don’t despair – it is possible to get out of debt. Get help if you need it and start taking control of your finances today.
