Stop expired arrangements with your bank
Bongani’s case study
Bongani had a secure job working as a travel agent for a well-known South African travel agency. He was thriving with booking holidays all over the globe until Covid arrived in South Africa in 2020. Overnight his income reduced by fifty percent, and he found himself in a position, not able to pay all his debt. He had a vehicle and loan account that he needed help with. This was totally unexpected, and he felt so embarrassed and not sure which way to turn to get help…
Banks offer payment holidays to their clients
One morning he read a news article about how his bank had come to the rescue to help their clients with payment holidays. He felt like he had received a lifeline and called his bank to see if they could help him. This was in April 2020 just after the country went into lockdown and he thought it would be a temporary problem. His employer would hopefully increase his salary again soon and he could resume his monthly payments. He decided to take a full payment holiday on his loan and 50% for his car until his financial position improved.
Three months went by and there was no sign of his salary returning to normal. He was starting to get worried, wondering what would happen to his vehicle if he was not able to pay it in full. His employer was keeping him on 50% salary until travel had improved, but no one knew how long this would be. He was stressed out, waking up every morning with a headache from griding his teeth in his sleep, caused by stress and worry.
Creditors will try all tactics to recoup investors’ money
One day he received an SMS from his bank. They had told him he was in arrears and had to settle the full amount or face legal action. He was shocked and couldn’t believe what was happening. He was confused, wondering why the bank didn’t check his bank account to see that his income had not improved. How could they just do this to him without any warning? How was he supposed to get the money if he was unable to work in his industry?
Out of desperation, he got on his phone and contacted the call centre. His call was transferred from person to person until he finally was able to speak to someone that could help. The bank told Bongani again that they would accept his payment arrangement. They would defer his payments for another 3 months to help him cope. Even though he was still rattled from the message, he hoped he could move forward now with this plan to help him breathe.
No arrangement lasts
His hope did not last long and 60 days later, the same happened. Again, he received another threatening SMS from his bank. He must pay all the money now or he will be handed over for legal action. Bongani was lost for words. He had made a 3-month arrangement, that had not stuck. His bank had access to his account and could see there was no improvement.
What was he going to do? How was he going to come up with the money if his bank was not accepting what he could offer? Was it going to help to call in again or would the same keep happening until he was able to catch up all the arrears?
Realization sinks in- the current plan will not work
At this point Bongani realised he needed to look at a different plan. His vehicle was behind for 5 months now and he was worried that it would be repossessed soon. Without a car, he wouldn’t be able to get around, earn an income, or take his child to school. The pressure was on to find an alternative solution fast.
Fortunately, soon after this, Bongani received an introduction from Premier Debt. We had connected with South Africans and asked them to follow us for tips to resolve their debt.
With nothing to lose, he subscribed and received a welcoming email with our articles. He was drawn to read up about how payment holidays are increasing your debt. He checked his statements and realised he too was paying more interest on his debt. The payment holidays were racking up interest and other charges. His financial position was only getting worse and worse.
Bongani finds a better option and acts
Bongani had enough and he decided it was time to talk to a professional. Now because his vehicle was in arrears, debt review was his best option to save his vehicle. He connected with one of our advisers for a new payment plan that he could afford with a reduced salary. His debt counsellor managed to reduce his monthly car and loan payments. The loan payment was reduced by 65% to leave enough to cover the new car payment in full. A new interest rate was negotiated with the bank to ensure that Bongani could still pay all his debt off in a reasonable time.
The greatest relief for Bongani was knowing that he no longer had to communicate with his bank. All the threatening text messages and dealing with the call centre were no longer his problem. His debt counsellor was now handling all communication. He knew if he received another SMS, he had someone to act on his behalf. Life was starting to feel less stressful and with a plan in action, he felt in control again.
Stop expired arrangements with your bank
Do you feel pressured by your creditors to pay more than you can afford? Like Bongani you too may be receiving calls, text messages or even WhatsApp messages. Your creditors will try to turn up the pressure to recoup more funds. Even if you have made a payment arrangement they still follow up for payment. Big corporations dealing with thousands of defaulting clients can use automated follow up systems. That’s why you still receive messages after making a payment arrangement like Bongani did.
Having that constant reminder of owing money increases your financial stress. It’s a negative experience that no one wants to live with. And it’s a reality that no one must deal with if they really want to move forward.
We helped Bongani escape creditor harassment. We can do the same for you. All you need is the willingness to change and be ready to work with a professional.
