September 2020 IDM Special Edition

TALK TO YOUR DEBT COUNSELLOR
TROUBLE MAKING
A PAYMENT
If you have been put on short time then this will directly affect your
income. Receiving less income could result in your prioritizing daily
expenses over monthly debt repayments. You need to put food on the
table and buy electricity to get by. Many consumers who have such an
unplanned drop in income, do not speak to their Debt Counsellor when
they first see trouble coming. Instead they make a decision based on
their perceived needs at the time. Often this results in them not having
the needed monthly debt repayment amount to their credit providers
(via their Payment Distribution Agent). Some though, wisely decide to pay
what they can, but others foolishly just skip the entire payment.
If a few days goes by and none of their creditors complain, they may
foolishly think everything is ok and as if nothing is wrong. This is naive
and unrealistic. It is obvious that the credit providers’ computers will pick
up the missed payment, and will start the process of them trying to get
out of the debt review. Although consumers will have been warned about
the serious results of missing payments, they simply hope for the best.
What happens next… the credit provider’s computers generate a letter
saying they are getting out of the debt review because the consumer did
not stick to the agreement and court order, and will revert to pestering
calls, sms’ and eventually a summons. The consumers stress levels will
start to rise, and they will invariably go running to their Debt Counsellor,
to ask for assistance long after the fact. They may now face legal action,
judgments (which last for 30 years) and the repossession and sale of
their assets like their car and home.