Debt consolidation

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Lord Anubis

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Do banks still do it? I am trying to help my domestic. She has about R50K debt in like 20 different accounts and is now 100% every payday broke! ffs! Besides me lending her the money what can I do for her? I cant afford to lose her but can't lend her money either?!! I pay her around R3K a month already!
 
WOW! How on earth did she manage to open 20 accounts???!!!

Sounds like the bank screwed her. In terms of the credit legislation, they ought to REFUSE you credit if you are not in a position to afford it.

The bank is supposed to assist with debt consolidation and rehabilitation for its clients, also in terms of the Credit Act.
 
blunomore said:
WOW! How on earth did she manage to open 20 accounts???!!!

Sounds like the bank screwed her. In terms of the credit legislation, they ought to REFUSE you credit if you are not in a position to afford it.

The bank is supposed to assist with debt consolidation and rehabilitation for its clients, also in terms of the Credit Act.
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Hun, the credit act only came into play recently.

As for OP, she has 20 accounts. She struggles to pay her debt. No amount of help or money lending to her will help her learn the value of a Rand
 
AcidRaZor said:
Hun, the credit act only came into play recently.

As for OP, she has 20 accounts. She struggles to pay her debt. No amount of help or money lending to her will help her learn the value of a Rand
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Which simply serves to emphasise my point, my lamb.

If banks are not forced by law - as they are now - to assist their clients, they will literally kill them with more and more debt.

It's a travesty what they did to uninformed, uneducated people.
 
She is only allowed to use a Third of her total salary to pay off debt, so what she must do is make a arrangement with Each and EVERY credit place to pay whatever amount, they can't do nothing if she pays just R1 even...
 
With her R3k payslip she was able to open an account at just about every clothing and furniture shop in JHB! I was hoping to get a bank that could lend or help her consolidate. Maybe being blacklisted will teach her a lesson but I think she'll just look for other ways to make the money:(. I think I'm going to lose her. She is really good, kind, reliable etc. Most of her big debt was prior NCA.
 
blunomore said:
Which simply serves to emphasise my point, my lamb.

If banks are not forced by law - as they are now - to assist their clients, they will literally kill them with more and more debt.

It's a travesty what they did to uninformed, uneducated people.
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yes dear, all I'm saying is that the NCA act only came into play recently. Before the 20 accounts she has open they only required a salary advice and her ID and proof of residence.

trust me, tried and tested from my side. a friend of mine at standard bank wrote the training manual for the NCA act to educate bank staff and what not (probably debt counsellors too)

Before the act went live I was able to increase my overdraft by 5x it's value and get almost R40k in credit card limits. After the act was in place I couldn't get as much as 2k limit increase because they had all my stuff on file, even the **** I never told the bank about.

She would be screwed right about now, but.... ignorance is not an excuse

I do realize she might be uneducated and uninformed. But in what reality does she live in that she would be able to afford to support her family AND pay her bills with Rx amount of income each month?

If the repayment on your accounts is more than your income the answer is? hawbu? eish? aikona?

Again, ignorance is not an excuse. The best the OP can do is help her go through her own statements and help her manage her money, but even then. You can't bring a horse to the water and make it drink.

If the OP helps her with some debt consolidation, its going to look as if the maid can then afford to spend money, and guess what she's going to do with this extra money? Yes! SPEND IT! And sometimes even.... you guessed it... open another account... because now she can "afford" to.

Teach a man to fish, but if the man is a vegetarian you're kind of ****ed aren't you?
 
Lord Anubis said:
Do banks still do it? I am trying to help my domestic. She has about R50K debt in like 20 different accounts and is now 100% every payday broke! ffs! Besides me lending her the money what can I do for her? I cant afford to lose her but can't lend her money either?!! I pay her around R3K a month already!
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As a debt counsellor, we are having the following situations occur rather frequently : most places only offer consolidations if there is surety (ie property). Alternatively, they get another Personal Loan with 42% interest.

If she makes arrangements with Credit Providers on her own, it makes the case a lot more difficult for the counsellor, as the credit providers try and force the client to stick to that agreement, as it is often done through lawyers.

Any consumer earning more than R2500 can apply for debt counselling, and those earning less can contact the NCR for the debt relief programme.
 
Peder said:
She is only allowed to use a Third of her total salary to pay off debt, so what she must do is make a arrangement with Each and EVERY credit place to pay whatever amount, they can't do nothing if she pays just R1 even...
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Not entirely true. If she pays short they can take legal action. They will send her a few letters that says she owes them and finally a section 129 informing her she can see a counsellor,mediator etc within a certain number of days or they will take legal action which can result in judgement or a EAO or reposession.
 
A personal loan with 42 percent interest?

Yes, I can see how that'll help them with money problems ...

In fact, I'd charge a 2% of total debt management fee (exclu VAT) and a futher 2% admin fee.
 
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avdp said:
Not entirely true. If she pays short they can take legal action. They will send her a few letters that says she owes them and finally a section 129 informing her she can see a counsellor,mediator etc within a certain number of days or they will take legal action which can result in judgement or a EAO or reposession.
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they can't take legal action as long as you pay a small amount... and you make an agreement with them...

yes it will take longer to pay off but they are being payed and its not as if you are not paying them...

Thats how my family is doing it ATM, since this NCA only came in lately we made soo much debt we could barely have food to live on...
 
Peder said:
they can't take legal action as long as you pay a small amount... and you make an agreement with them...

yes it will take longer to pay off but they are being payed and its not as if you are not paying them...

Thats how my family is doing it ATM, since this NCA only came in lately we made soo much debt we could barely have food to live on...
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What is really awesome is world wide people are now looking to South Africa to adopt the same legislation as SA is in the forefront of this type of thing
 
AcidRaZor said:
Its not as easy and will screw her even more over the next 10 years. you lose a lot more than "nothing" in the long term
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How? You're only blacklisted for 5yrs AFAIK. Also, someone who earns R3,000/month shouldn't be able to get into that situation again under current law.
 
blunomore said:
I call all and sundry on this forum 'my lamb'. You are no exception :)
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aw, and I thought I was spechul

xrapidx said:
How? You're only blacklisted for 5yrs AFAIK. Also, someone who earns R3,000/month shouldn't be able to get into that situation again under current law.
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Problem is the courts will decide what she has and how she can repay the people. Bankruptcy isn't cut and dry. You're blacklisted for 5yrs but you might end up paying Rx per month back ANYWAY depending what the court decide.

Like I said, its not as easy as "okay I give up I can't pay so now you're ****ed and I don't have anything to give you so now I'm bankrupt"

You'll find that if she has a job she'd have to pay still. 10 years was an estimate, could be longer.
 
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