We have paid up all our accounts and never defaulted on any payments. The only payment we have left is our car. We need to pay the credit counseling R3196 each month but at this stage we can only afford to pay R2300.
Our car needs maintenance, and that’s one of the reasons we are paying less is to fix the car.
What I want to know is can the bank take the car back if we don’t pay the full amount as per the grant order? If they can is there another way to try and keep the car?
Thank you for your question.
When you can’t afford the agreed upon repayments and it results in missing payments your credit providers have the right to terminate the debt review and take legal action against you without further notice.
It would be best to speak to your debt counsellor without delay, and motivate your reasons for not being able to meet the full payment. If you had a valid reason for being unable to meet the full payment arrangements could be made with the credit provider.
It’s crucial that payments are made on time. The Credit Act provides this solution to over-indebted consumers to enable them to keep their homes, vehicles and other assets, but if a consumer miss payments it becomes difficult to keep them in the process.
If you know in advance that you are going to have an expense which will result in you not being able to make a payment on your debt review, talk to your debt counsellor well before the time. They can then make the necessary arrangements with your credit providers. There are however no guarantees that they will consent to an already reduced instalment, and will still be within their rights if they terminate your debt review. No harm in trying though. With a strong enough motivation, your debt counsellor might persuade them.
Have a great day.