Frequently
Asked Questions.
Debt Recovery Specialists
What should I do if I can’t pay my bills?
If you’re struggling to pay your bills, the first step is to contact your creditors and explain your situation. Many companies have hardship programmes or may offer payment plans.
Can debt collectors contact me at any time?
No, debt collectors must follow strict rules. They can’t contact you at unreasonable times or harass you. If you feel a debt collector is behaving unfairly, you can lodge a complaint with the Council for Debt Collectors (CFDC).
What happens if I ignore my debts?
Ignoring debts can lead to serious consequences, including legal action, damage to your credit rating, and increased stress. It’s important to address your debts, even if you can’t pay them in full right now. Open communication with creditors is key.
Will my credit rating be affected?
Yes, unpaid debts or late payments can negatively affect your credit score, which may impact your ability to get loans, rent, or even some jobs. Taking action early can reduce the impact on your credit rating.
What is insolvency and when should I consider it?
Insolvency (sequestration) is a legal process for people who can’t pay their debts. It’s a last resort and has long-term consequences, including affecting your credit rating and your ability to obtain credit. Always seek professional advice before considering sequestration.
Can I consolidate my debts?
Debt consolidation involves combining multiple debts into one loan or payment. This can make repayments more manageable, but it’s important to check the terms and ensure it won’t cost you more in the long run. Speak to your bank or a financial counsellor for advice.
What is a debt agreement?
A debt agreement is a formal arrangement between you and your creditors to repay your debts. It’s less severe than insolvency but still impacts your credit rating and may not be suitable for everyone. Professional advice is recommended before entering a debt agreement.
Will my family know about my debt?
Debt information is generally private, but certain legal actions (like sequestration) may become public record. If you share finances with family, they may be affected, so open communication is helpful.
How can I prevent getting into debt again?
Creating a budget, tracking your spending, and building an emergency fund are all good ways to avoid falling into debt. Financial literacy programmes and counselling can provide ongoing support and education. Our affordability calculator can help you understand your monthly position.
Where can I get urgent help?
If you’re in crisis or need urgent help, contact us via our enquiry form or call us on 011 329 8500. If your situation is affecting your mental health, reach out to LifeLine South Africa on 0861 322 322 for emotional support.