My wife and I have been on debt counselling since August 2011.
We have managed to pay our instalments of R10’171.18 every month.
We started falling behind from the end of Feb this year and paid about a week later (10 March)
Then again a late payment for the next month was also a week later.
Now May and June has not been paid at all yet as we simply do not have the full amount of R10’171.18 + R10’171.18
I emailed the debt counsellors to ask if we can pay whatever we can (as we get money through the month) to start catching up and if they can then pay these small amounts towards our cars and house to show the creditors that we are at least paying something for now. The answer I got was…
“Good day Gary,
Unfortunately the process does not work that way.
Payments need to be the full amount so when distribution takes place it’s a once off payment.
You will have to get the payments up to date as soon as possible to avoid your creditors terminating because if they want to terminate and we don’t have proof of the correct payments we cannot protect you.
Your other option is to sequestrate if you are struggling with the monthly payments towards the debt counselling.”
OK. So here is my question.
What is the point of Debt counselling if we HAVE to make the FULL payment each and every month. I mean, the whole point of being on debt counselling is that we are struggling with our debt. I think it is also because we work for ourselves and do not always have enough money at the end of the month as we don’t earn a fixed salary? So would it not be better for me to come off debt counselling so that I may pay something towards my cars and house bond?
Also I keep getting asked to take their sequestration product? This is worse because an investor would buy my house at an auction price (80%) less than market price from the bank and then I would have to RENT my house from the investor at almost the same monthly price as I was paying? And this would be disastrous in the fact that if I miss a payment then, the investor could kick me out and I’ll be on the street in no time.
I am really in a catch 22 situation and really need some serious advice. Also with the sequestration package I would be able to start paying for the cars with the finance companies as before? But I thought a Sequestration means that you cannot do this as everything in your personal portfolio would be scrapped and you would lose these financed items?
Please Help. I would rather just come off Debt counselling and make arrangements with my house Bond and 2 cars myself and pay what I can for awhile so they can see I am trying and then as soon as things pick up again, pay the full instalments?
I have a copy of the Sequestration Product if you need me to post it...
Any advice will do please.