Taking on debt isn’t always a bad thing. Particularly if you look at purchasing a house or a car. You just need to make sure you keep on top of the monthly repayments.
What if I’ve missed a few repayments?
Firstly, don’t hide from your creditors. They will be looking to hand you over to their collections team. Before they do this, you can negotiate a reduction in your repayments to try and get back on track.
If you avoid their phone calls and letters, your creditor is entitled to contact a court of law to enforce the credit agreement. Remember, when you purchased your car you signed a legal document agreeing to pay back an amount to the credit provider each month.
If you receive a section 129 notice – do not ignore it. This is the final demand and your creditor has the right to repossess your car. At this stage you can still speak to your creditors to see if they will accept an alternate plan.
Learn more about your repossession rights
Your credit provider is likely to recommend you see a debt counselor to re-asses your budget and repayment plan. This will enable you to pay off your debts with a more affordable monthly repayment plan. Your assets will be protected, and your car will not be repossessed.
If you are struggling with your car finance repayments and need assistance, please contact us. Our friendly and professional consultants are trained to get the best solution for your needs.Contact us
Make the right choice.
- When looking to purchase a car using vehicle finance, make a budget to make sure that you can afford to make the repayments every month. Make sure you consider the installment, insurance and petrol usage and maintenance.
- Don’t go for the luxury car, if you do not have the funds to run it. They often use more petrol and are expensive. Rather go for a more economical car with instalments that meet your budget
- Don’t buy a brand-new car. The value of the car depreciates as soon as you drive off the forecourt. You’ll owe the bank more money than the car is worth as soon as you get home.
- Consider the re-sale value when financing your car. When you sell will you be able to pay off the finance?
- Choose the right car. Choose a car that is fuel efficient. Simple things like the colour of your car can affect how much your insurance will cost. A car brand that has parts made in South Africa will also save you money if something goes wrong.
Make the right decisions and you’ll be cruising along just fine. But if you do find you are struggling to make your monthly repayments, don’t wait until your car gets repossessed, contact Meerkat today for help.Contact us