BOND, VEHICLE AND FURNITURE ARREARS

What to do if you cannot afford to make your repayments?

• You must contact the credit provider as soon as you can and describe your circumstances
  - The credit provider will give you several repayment options available for you. You will need to make sure you understand what the several options mean to ensure you choose the best option.
• Do you have credit life insurance to pay your Furniture, Bond or Vehicle?
  Credit life Insurance is a type of insurance which can help you pay your monthly debt repayments in the event of unemployment, temporary or permanent disability and or in the event of death. You are usually given this policy when getting into a credit agreement.
• What is your budget?
  - A budget planner will assist you in working out your income and expenditure. To be able to meet your bond or vehicle repayments, it is essential to cut out non-essential daily expenditure.
• Make payments that you can afford
  - Agree to pay back what you can afford when discussing your alternatives with the credit provider. By paying an extra amount you can afford to decrease your arrears will encourage your credit provider to reconsider your case seriously.
• Consider selling your property or vehicle on the open market
  - In the event that you know that your situation won¡¦t improve in the long term then consider selling your property or vehicle yourself move into an affordable property or buy an affordable vehicle Make a request to your credit provider as to whether or not you can stay in your current property until you sell it and check whether they can help you through an Assisted Voluntary Sale scheme. However, ensure that you have somewhere to live prior to moving out. Should this not be possible, you can sell your home to the company and rent it back from them. In addition, check whether or not you are able to sell your property to another social landlord and stay as a tenant.

Informing credit provider of repayment problems

If you are having trouble meeting your furniture, bond and vehicle payments, or you consider that there is likely to be a future problem, inform your credit provider straight away. Your credit provider is most likely to respond fairly and work collaboratively with you to seek a repayment solution

Most credit providers have debt review departments to help you should you see you are struggling making monthly furniture, bond or vehicle repayments or alternatively approach a debt counselor to get the assistance. The sooner you make contact with the debt review department of the credit provider or contact a debt counselor the better it is since the situation would not have been out of control. However should all these two options fail, we can always assist you in stopping the auctioning or repossession of your house or vehicle.

Should you not be able to afford your entire furniture, bond or vehicle repayments you can talk to your credit provider and pay what you can afford? This demonstrates to your credit provider that you wish to deal with the problem and makes them more likely to agree to this solution. There are certain options your credit provider can consider including:

• Reducing your monthly furniture, bond and vehicle repayments by lengthening the repayment term. However annual interest rate will not be reduced.
• Placing the bond repayment into an interest-only basis, provided that you understand that you are not going to pay anything off except the interest only.
• Adding on the arrears to the outstanding amount as opposed to seeking immediate payment.
• Agreeing to lower repayments for a short time until you can resume making the full instalment and pay off any accumulated arrears as well.
• Request for a change in payment date or how you make payment.

The earlier you speak to your credit provider, the greater the number of options available to remedy the situation. The aforementioned options are only short-term solutions; the repayment problem must be resolved in the long-run.

What to do should your credit provider want to repossess your asset?

Liaise with your credit provider as soon as you can
Should you not have attempted to discuss potential repayment alternatives with your credit provider, this is your opportunity to do so. This could keep you from having to go to court, should you need assistance contact us, we are only a phone call away and we will help you.

Going to court
It is much more likely that you will keep your furniture, house or vehicle should you go for court hearing. You will have an opportunity to put your case forward to the judge. Such hearings are usually held in an open court
Request to see a duty officer at the court prior to your case commencing, should you not have a attorney or debt adviser representing you
Ensure that you are aware of the consequences of any arrangements offered by your credit provider outside the court room
You should only agree to a specific arrangement should you be able to reasonably keep to it for the remaining duration of your furniture, bond or vehicle. Should you not be able to maintain an arrangement you have agreed to, it could be easier for your credit provider to repossess your property. If you are unsure of what could happen, then you must make every effort to attend the court hearing.

Continue liaising with the credit provider and pay what you can afford

What you must avoid?

Taking out another, fresh loan to repay your debts

Returning the keys

• You will remain in debt, owing the credit provider any outstanding debt, including the interest built up on the loan, until the property has been sold.
• You are going to have to pay the costs involved in selling the property; you will still owe for any shortfall between the sale price of the property and your outstanding debt.
• Your credit provider could chase you for payment of the total amount you owe, through the courts.
• Your name could be added to a register of those who have had their properties repossessed and you could find it more difficult to get a loan in the future.