Man takes R52,000 loan – now owes ABSA R1.4 million

Man takes R52,000 loan – now owes ABSA R1.4 million

It's fcking ridiculous and criminal that banks can get away with this kind of BS.
 
Newsfeed said:
Man takes R52,000 loan – now owes ABSA R1.4 million

A Welkom man who took a loan from ABSA for R52,000 in 2008 now owes the bank R1.4 million, according to a report by the Sunday Times.
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So, what does this tell you? Stay away from debt review. It is not working. Debt review may only work if you still have a job and property they can take.

If you can't repay debt, have no property or income, ignore them. Don't go for debt review or councilors. They can't take what you do not have. Don't enter into any agreements. Do not agree to the debt. Do not take phone calls. Eventually, the debt will expire.
 
supersunbird said:
Blame the court order. And bad advice from debt reviewer possibly.
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Too many of these debt review companies are only too happy to keep their customers in debt. It's too their advantage that the customer never gets out of debt.
 
Adrianax said:
So, what does this tell you? Stay away from debt review. It is not working. Debt review may only work if you still have a job and property they can take.

If you can't repay debt, have no property or income, ignore them. Don't go for debt review or councilors. They can't take what you do not have. Don't enter into any agreements. Do not agree to the debt. Do not take phone calls. Eventually, the debt will expire.
Click to expand...

The creditors have the option of issuing summons to ensure that you do not get away with the expiration of the debt.
 
Sl8er said:
Man takes R52,000 loan – now owes ABSA R1.4 million

It's fcking ridiculous and criminal that banks can get away with this kind of BS.
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Headline is misleading - as per usual.
That's the total repayment over 25 years.

The man can choose to lower it substantially by reducing the time frame.

Nothing to see here.
 
15.5% isn't bad for a personal loan. It's compounding interest and bad debt counselors that's the problem. He isn't responsible for the future interest as yet, only if he lets the loan run it course so that amount is ridiculous. Most home loans work out about double the initial cost or more if it continues on for the full time of the loan.
Pay more and the capital amount will come down faster and you end up paying less.
 
Isn't there a law that total interest cannot exceed the principal, or something to that effect?
 
Stupid court order to repay over 25 years - lack of basic finance knowledge - and stupid of the debtor to not expedite payments. Pretty stupid article too. A lot of stupidness all round. :crying:

Can't really fault ABSA.
 
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