Should You Contact Your Bank Before You Miss a Payment?

Yes. If you believe your next car-finance or home-loan instalment may be unaffordable, contact your credit provider before the payment is missed.

Bank Payment-Difficulty Conversation Builder

If a car or bond instalment may become difficult to pay, asking your bank early can clarify your options. Tell us where your account stands, how much you expect to be short and how long the difficulty might last. We’ll prepare a respectful message you can edit and send yourself.

Your answers stay on this page. This guidance does not determine credit approval or legal validity.

You can continue reading the guidance below without answering these questions.

Contacting the bank does not itself alter your contract, stop a debit order, excuse a payment, freeze interest or prevent enforcement. Ask about costs, credit-record effects and later payments, and obtain written confirmation of anything the lender actually agrees. If a formal Section 129 notice or court document has already arrived, follow the relevant existing ConsumerLaws guide as well.

This is an editable local draft. Nothing is sent to a bank. Contacting a lender does not change payment terms, stop a debit order or suspend enforcement. Obtain written confirmation of anything actually accepted.

Your answers stay in this page and are not submitted or stored. This educational guidance does not determine legal validity, lender approval or an enforcement outcome.

Early communication can help you understand which arrangements the lender may consider, what information it requires, how any proposed change would affect your repayments and what you must do next.

Perhaps your salary has decreased, unexpected household expenses have reduced the money available or you are worried that the next debit order may fail.

You may be wondering:

“Should I tell the bank that I cannot afford the payment, or should I wait and see what happens?”

If you already have good reason to expect a shortfall, early contact gives you an opportunity to ask questions while your account may still be up to date.

The National Credit Regulator (NCR) encourages financially distressed consumers to communicate with their credit providers and discuss affordable repayment arrangements.

However, contacting your lender does not automatically change your credit agreement or approve payment relief.

Until a different arrangement has been accepted, do not assume that:

• Your normal instalment has changed.
• Your debit order has been cancelled.
• The contractual payment date has moved.
• Interest has been frozen.
• A payment has been waived.
• Your payment obligation has been suspended.

The practical objective is straightforward:

Contact the lender early, explain your circumstances clearly, understand any proposed arrangement and keep a reliable record of what was agreed.

Request informed advice

Why early contact can be useful

Many consumers hesitate to contact their bank because they hope the problem will disappear before the next debit order.

Sometimes income arrives sooner than expected or a temporary expense does not recur.

But when you already know that the payment may be unaffordable, waiting can reduce the time available to prepare information and discuss possible assistance.

There are five practical reasons to contact your lender early.

1. Find out what assistance may be available

Your bank may have arrangements it is willing to consider for consumers experiencing payment difficulties.

However, not every lender offers the same options.

Eligibility criteria, application requirements and contractual consequences can differ.

Do not assume that an arrangement available at one bank must be offered by another.

Ask your own credit provider what it is prepared to assess.

2. Understand what documents the lender requires

A lender may request information about your income, account, financial circumstances and the reason for the anticipated payment difficulty.

Some arrangements may require supporting evidence.

For the dedicated preparation checklist, read documents for payment arrangement with bank.

You can begin the conversation with the information already available rather than postponing all contact until every document has been collected.

3. Understand the financial consequences

A reduced payment may sound helpful.

However, the unpaid portion could be deferred, added to future repayments or dealt with through another agreed arrangement.

Interest may continue, and the remaining repayment term may change.

Before accepting any proposal, establish what you will pay immediately and what you may owe later.

4. Identify whether the problem is temporary or ongoing

A temporary interruption in income may require a different response from a recurring household affordability problem.

If the same shortfall is likely to occur every month, a short-term arrangement may postpone rather than resolve the difficulty.

Use temporary vs ongoing financial difficulty to assess which situation better describes your circumstances.

5. Create a reliable communication record

By contacting the lender early, you can document what you requested, what information was provided and whether an arrangement was offered.

Save reference numbers, correspondence, requested documents and written decisions.

This information becomes valuable if you need to follow up or clarify the account’s position.

Early contact provides an opportunity to gather information and discuss possible assistance. It is not automatic payment relief.

“Is my normal instalment still payable while my request is being considered?”

Also confirm:

“Has any arrangement been approved, or is my request still being assessed?”

These questions help distinguish an enquiry from an accepted change to the agreement.

For broader early-intervention guidance, see can’t afford a car or bond payment act before arrears.

If your difficulty specifically concerns vehicle finance, read cannot afford car payment this month.

For a home loan, use cannot afford bond payment this month.

ConsumerLaws Early-Contact Decision Check

Before approaching the lender, complete this simple checklist.

Question	YES	NO / UNSURE
Is the account currently up to date?	□	□
Do I know which upcoming payment may be unaffordable?	□	□
Do I know the exact due date?	□	□
Do I know the expected payment shortfall?	□	□
Can I explain what caused the problem?	□	□
Do I know approximately how long it may last?	□	□
Do I have a realistic amount I could pay?	□	□
Have I checked whether the same problem returns next month?	□	□

Understanding your answers

This checklist is a preparation guide, not a lender-eligibility assessment or automated legal determination.

If you have most of the information

You have a useful starting point for contacting the bank. Explain the instalment amount, due date, anticipated shortfall and reason for the difficulty. Ask which arrangements the lender may consider and what information it requires. Before making any commitment, establish what must be paid while the request is considered and how an approved arrangement would affect future repayments. Keep a record of the discussion.

If important information is missing

Start by obtaining the current account position, contractual instalment and payment date. Calculate the amount you can realistically afford after essential living expenses and other commitments. You do not need to invent figures to begin a discussion. Explain what you know, identify what remains uncertain and ask the lender which supporting information it needs before assessing your circumstances.

If the same problem is likely to continue

Your difficulty may require more than a temporary payment change. Review reliable income, essential household expenditure and all existing credit commitments. Before agreeing to a concession, check whether it would remain affordable once the relief ends. Use temporary vs ongoing financial difficulty to examine the wider position. ConsumerLaws can help you understand which information and assessment may be appropriate for your circumstances.

If the account may already be overdue

Check your latest statement and confirm whether the previous instalment was successfully received and allocated. If a payment remains outstanding, the account may have moved beyond the pre-default stage. Contact the lender to establish the amount overdue and review any documents received. For the appropriate next-stage guidance, use if the car payment is missed or if the bond payment is missed, depending on the account concerned.

Prepare for my bank discussion

What information to have ready

A useful bank discussion begins with clear, realistic information.

The objective is not to prepare an unnecessarily large bundle of paperwork.

It is to help the lender understand which account is affected, what payment is due, why you anticipate difficulty and what you can realistically afford.

For the detailed document checklist, use documents for payment arrangement with bank.

ConsumerLaws Pre-Default Bank Discussion Planner

Complete the following before contacting your credit provider.

Discussion point	Your information
Credit provider	__________
Type of agreement	Vehicle / Home Loan / Other
Account/reference	__________
Account currently up to date?	Yes / No / Unsure
Next contractual payment	R__________
Payment date	__________
Amount currently available	R__________
Expected shortfall	R__________
Main reason for difficulty	__________
Date difficulty started	__________
Expected recovery date	__________
Amount I could realistically pay	R__________
Is the problem likely to repeat next month?	Yes / No / Unsure
Previous arrangement on this account?	Yes / No

The planner helps you prepare for a meaningful conversation.

It does not determine whether you qualify for a particular arrangement.

Confirm the exact payment amount

Use your latest statement, credit agreement or banking records.

Avoid working from an old instalment amount if the payment may have changed.

For example, do not tell the lender that your instalment is approximately R8,000 if the current amount payable is R8,742.

The difference may affect your proposed arrangement.

Confirm the payment date

Find out exactly when the contractual instalment is due and when the debit order is expected to run.

If you are uncertain whether the account is still up to date, ask the lender to confirm the position.

Section 110 of the National Credit Act provides for consumers to request specified account information, including amounts currently payable, amounts overdue and relevant account transactions, subject to its requirements.

Calculate the expected shortfall

Use a simple calculation:

Contractual instalment − amount genuinely available = expected shortfall

For example:

Payment information	Amount
Contractual instalment	R9,500
Money available	R7,000
Expected shortfall	R2,500

This example identifies an expected R2,500 gap.

The amount should reflect money realistically available after necessary household expenses and other commitments.

Explain why the payment may be difficult

Relevant circumstances might include:

• Reduced working hours.
• Delayed salary payments.
• Reduced commission.
• Medical or other essential expenditure.
• Retrenchment.
• Temporary unemployment.
• An unexpected household expense.
• A continuing reduction in income.

Explain the actual reason without exaggerating your circumstances.

Establish how long the problem may last

Ask yourself whether the difficulty is expected to last:

• One payment cycle.
• Several months.
• An uncertain period.
• Indefinitely, unless something changes.

If you are unsure, say so.

Do not give the lender a recovery date that cannot reasonably be supported.

Calculate what you can realistically pay

Before proposing a reduced instalment, review your household budget.

A useful calculation is:

Reliable monthly income − essential living costs − other committed repayments = amount available for the affected instalment

Exclude the instalment you are assessing from the other repayments to avoid counting it twice.

For example, if R4,500 is genuinely available, do not promise R7,000 simply because you hope to find the difference later.

Your proposed payment must be sustainable.

Consider relevant insurance

If the difficulty arose from retrenchment, disability or another event affecting income, check whether your agreement has relevant credit-life or other insurance.

Do not assume that cover exists or that a particular event qualifies.

Ask the insurer or provider about the policy conditions and claim procedure where applicable.

What to avoid before calling

Do not provide inaccurate income figures.

Do not ignore essential living expenses.

Do not promise a catch-up payment without calculating whether you can afford it.

Do not assume that a request has already been approved.

Do not cancel the debit order merely because you intend to contact the bank.

A useful discussion should establish your actual circumstances, not make the problem appear smaller than it is.

What to ask the bank

The most effective lender conversation is specific.

Instead of simply asking:

“Can you help me with my payment?”

Explain the relevant facts and ask what assistance, if any, is available.

Start by confirming the account

Ask:

“Can you confirm whether my account is currently up to date and what instalment is due next?”

Then explain your anticipated difficulty.

For example:

“My account is currently up to date. My next instalment is R9,500, but my household budget shows that I may be R2,500 short. My income has temporarily decreased, and I expect it to recover next month. What arrangements could the bank consider, what documents would you require, and how would any change affect my repayments?”

This provides the lender with useful information about your payment date, expected shortfall and circumstances.

It also avoids making an unrealistic promise.

Ask the bank to explain the available options

Different lenders may consider different arrangements depending on the agreement and the consumer’s circumstances.

Ask what the bank can assess rather than assuming that a particular relief programme applies.

If the terminology is unfamiliar, request a plain-language explanation.

An arrangement is difficult to evaluate when you do not understand the repayment consequences.

Amount and duration of relief

The first group of questions concerns what you would have to pay immediately.

Ask:

• What payment is due on the normal contractual date?
• Is the proposal a reduced payment or a deferred payment?
• How long would the arrangement last?
• When would normal repayments resume?
• Would I have to make a catch-up payment?
• Would deferred amounts be spread across future instalments?
• Would the bank issue a revised payment schedule?
• What happens if my income has not recovered when the arrangement ends?
• When would the arrangement become effective?
• What must I pay while the request is being assessed?

Do not assume that a payment reduction means the unpaid amount disappears.

Consider this hypothetical example.

Normal instalment: R10,000.

Proposed temporary instalment: R7,000.

Arrangement duration: Three months.

The immediate monthly reduction would be R3,000.

Across three months, the total difference would be R9,000.

However, the example does not establish how the lender would treat that R9,000.

It may be deferred, recovered through future instalments or dealt with through another arrangement.

The actual result depends on the lender’s written terms.

ConsumerLaws Relief Path Check

Use this table to clarify the proposal.

Question	Answer to obtain
Normal contractual payment	R_____
Temporary payment	R_____
Difference each month	R_____
Number of relief months	_____
Total amount deferred/reallocated	R_____
Date normal payment resumes	_____
Catch-up payment required?	Yes / No
Later instalment changes?	Yes / No / Unknown
Loan term changes?	Yes / No / Unknown

The amount temporarily reduced is not necessarily the amount finally repayable.

Interest, charges or changes to the repayment term may affect the overall cost.

Ask what happens after the arrangement ends

A temporary arrangement should be evaluated against your future household budget.

If the normal instalment resumes alongside a catch-up amount, calculate whether both can realistically be paid.

If the bank says it can provide several months of relief, ask exactly what that means.

The answer may differ significantly from having the payment waived.

Interest, fees and term impact

The second group of questions concerns the financial consequences.

Ask the lender:

• Will interest continue during the arrangement?
• What happens to any unpaid amount?
• Are fees or other permitted charges involved?
• Will the repayment term become longer?
• Could later instalments increase?
• Will the contractual end date change?
• If vehicle finance includes a balloon payment, would that amount be affected?
• For a home loan, would the remaining repayment schedule change?
• Can the bank explain the estimated total financial effect?
• Can the terms be provided in writing?

A lower instalment today does not necessarily mean the credit agreement will cost less overall.

Example: Temporary payment reduction

Payment information	Amount
Normal instalment	R12,000
Temporary instalment	R7,000
Monthly reduction	R5,000
Duration	3 months
Total temporary reduction	R15,000

The reduction provides R15,000 of short-term cash-flow relief.

But the financial treatment of that amount must be established.

Depending on the arrangement, it may affect the outstanding balance, future instalments, the repayment term or total interest.

Do not assume that one arrangement works like another.

Compare the offer with what you can afford

Suppose your realistic available amount is R6,000.

The lender proposes a temporary instalment of R8,500.

If your circumstances cannot support R8,500, the arrangement is not workable simply because it is lower than the original payment.

Ask whether the lender can assess another appropriate option.

If no suitable arrangement exists, reconsider the wider affordability position.

Use temporary vs ongoing financial difficulty to determine whether the payment problem is likely to continue.

Why verbal promises are not enough

A telephone discussion can be a useful first step.

However, an important payment arrangement should be clearly documented so that both you and the credit provider understand what has been agreed.

Request written confirmation of any material change.

This is an important practical safeguard.

It does not mean that every agreement is necessarily invalid unless it has been recorded in one particular format.

The objective is to establish the terms accurately and retain reliable evidence.

Understand the difference between a request and an approval

Consider these statements:

“I have submitted your request to the relevant department.”

and:

“Your revised repayment arrangement has been approved.”

They do not mean the same thing.

The first confirms that an application or enquiry has been submitted.

The second indicates that a decision has been made.

Similarly:

“We can consider reducing your instalment.”

does not mean that your contractual instalment has already changed.

Ask the representative to confirm the account’s current position and what you must pay.

ConsumerLaws Bank Discussion Record

Complete this record after every significant interaction.

Record	Details
Date and time	__________
Contact channel	Phone / Email / Secure message / Branch
Department	__________
Representative	__________
Reference number	__________
What I asked for	__________
What the lender said	__________
Documents requested	__________
Payment due while request is considered	R__________
Follow-up date	__________
Written confirmation received?	Yes / No

The record helps you distinguish what was discussed from what was actually agreed.

Check the written terms carefully

When confirmation arrives, compare it with your notes.

Check:

• The approved payment amount.
• When the arrangement begins.
• The due date.
• How the debit order will be treated.
• The duration of the arrangement.
• Interest and charges.
• Changes to the loan term.
• Future instalments.
• Any catch-up obligation.
• Conditions that must be met.

If an important detail differs from what you understood, request clarification.

Do not change your payment instructions based on an assumption

A verbal discussion does not necessarily mean that the bank has stopped a debit order or changed the contractual instalment.

Before taking action, establish what the lender has actually approved.

Do not assume that you should skip a payment, change the amount or cancel an instruction merely because a proposal was discussed.

Keep the agreement and payment records together

Create one folder containing:

• The lender’s proposal.
• Written confirmation or accepted terms.
• Revised payment information, where supplied.
• Correspondence.
• Reference numbers.
• Proof of payments.
• Any subsequent changes to the arrangement.

This helps you check whether your account is being administered according to the terms you understood.

The most useful question before ending the call

Ask:

“To make sure I understand correctly, what must I pay, on which date, and when will I receive confirmation of the arrangement?”

Then make a note of the response.

Find my payment stage

What to do if no workable arrangement is offered

Contacting your lender early is useful even if it cannot offer the arrangement you hoped for.

The discussion may establish that:

• No suitable arrangement is available.
• You do not meet the lender’s criteria.
• The proposed payment remains unaffordable.
• The relief period is too short.
• A required catch-up payment cannot be maintained.
• The underlying financial problem is longer-term.

If that happens, the next step is to understand why the arrangement does not solve the problem.

Ask whether the shortfall is temporary or ongoing

A simple comparison can help.

Temporary-pressure indicator	Ongoing-pressure indicator
One identifiable event caused the gap	Same gap appears every month
Normal income is expected to resume	Income has permanently fallen
Normal instalment becomes affordable again	Normal instalment remains unaffordable
Deferred amount can realistically be caught up	Catch-up would require new borrowing
Essential expenses remain covered	Essentials are being sacrificed
Other debts remain manageable	Several debts are under pressure

This comparison is a guide to further assessment.

It does not constitute a formal legal determination of over-indebtedness.

For the dedicated assessment, read temporary vs ongoing financial difficulty.

If the bank requests more information

Ask which documents remain outstanding and whether the application can be reconsidered once they are supplied.

Use documents for payment arrangement with bank to organise the relevant information.

Do not assume that submitting further documents guarantees approval.

If your next car payment is becoming unaffordable

Use cannot afford car payment this month.

That guide focuses on the vehicle-finance instalment, the cost of keeping the vehicle and decisions specific to that account.

If your next bond payment is becoming unaffordable

Use cannot afford bond payment this month.

That guide addresses the upcoming home-loan instalment and household affordability considerations.

If several credit accounts are under pressure

The issue may be broader than one payment.

Review your income, essential household expenses and all existing credit commitments.

Return to can’t afford a car or bond payment act before arrears for the broader early-intervention guidance.

Where regulated debt counselling may be appropriate, it should be explained transparently and assessed in accordance with section 86 of the National Credit Act by an NCR-registered debt counsellor.

When considering a regulated restructuring proposal, assess income, living expenses and debt commitments carefully.

The fact that a consumer is experiencing financial pressure does not automatically mean that any particular debt-relief process is suitable.

Do not automatically borrow more to pay the shortfall

Taking another loan may temporarily cover the instalment while creating a new repayment obligation.

Before deciding, establish whether the additional credit would genuinely improve your household’s ability to meet its commitments.

If the overall budget remains unaffordable, borrowing again may simply move the difficulty to another account.

If the payment is ultimately missed

The account may move into a different stage.

For vehicle finance, use if the car payment is missed.

For a home loan, use if the bond payment is missed.

The detailed rights and procedures following default are addressed in those dedicated guides.

Sections 129 and 130 of the National Credit Act govern certain procedures before credit-agreement enforcement once a consumer is in default.

Those provisions are distinct from voluntarily contacting the lender before missing a payment.

They do not provide an automatic payment holiday or guarantee that contacting the bank prevents later enforcement.

If a matter reaches the formal legal stage, the actual documents and circumstances must be assessed.

Where court representation becomes necessary, ConsumerLaws can refer you to an independent attorney within our affiliate network, who will assess your matter and handle the legal proceedings if instructed.

ConsumerLaws Bank Discussion Script Planner

Use this final planner to prepare for your next conversation.

Before the call	Your answer
Is the account still current?	__________
What payment is due?	R__________
When?	__________
How much am I likely to be short?	R__________
Why?	__________
How long will the problem last?	__________
What can I realistically pay?	R__________
What do I want to ask the lender to consider?	__________

During the discussion, obtain answers to the following:

Ask the lender	Answer
Is any arrangement available for these circumstances?	__________
What must I pay now?	R__________
How long does the arrangement last?	__________
Does interest continue?	__________
Are fees involved?	__________
Does the term change?	__________
Do later payments change?	__________
What happens to any deferred amount?	__________
What must I pay while the request is pending?	__________
When does the arrangement become effective?	__________
Will I receive written confirmation?	__________
What is my reference number?	__________

Then ask yourself:

“Can I realistically afford what the bank has proposed?”

If the arrangement appears manageable, check the accepted terms and keep a record of your payments.

If it remains unaffordable, do not treat a lower instalment as a solution without examining the longer-term effect.

Prepare for my bank discussion

ConsumerLaws provides consumer credit consultancy to help you organise your payment information, understand the expected shortfall, prepare questions and assess which next step may be appropriate.

You can request informed guidance without having to wait until your account is already overdue.

For the broader early-intervention journey:

Check my situation before I miss a payment

For general payment pressure affecting car finance or a home loan:

can’t afford a car or bond payment act before arrears

If your difficulty may continue:

temporary vs ongoing financial difficulty

If the payment has already been missed:

if the car payment is missed

or

if the bond payment is missed

The most important step is to understand your financial position and the lender’s actual response before relying on any proposed payment change.

Request informed advice

Primary legal and regulatory sources

• National Credit Act 34 of 2005, particularly sections 79, 86, 110, 129 and 130.
• National Credit Regulator, Consumer Rights as per the National Credit Act — guidance on contacting credit providers and negotiating affordable repayment plans.
• Kubyana v Standard Bank of South Africa Ltd [2014] — statutory notice and enforcement requirements.
• Dreyer N.O. and Another v Standard Bank; Nedbank Limited v Abrahams [2026] — distinction between statutory debt-enforcement provisions and related legal procedures.