Surprisingly enough, the banks don’t want your house, so when it comes to repossession of assets…remember there is always a plan to be made. Usually one of the biggest monthly expenses, also becoming one of the biggest financial headaches for consumers, home loans are a daunting element of life that many face. When you are battling to keep up with bond repayments, remember there is always a helping hand. Whether speaking to the bank, or getting advice from the National Debt Advisors, make sure to manage your debt responsibly.
The monthly repayment on most bonds is currently around 7% higher than at the beginning of last year. The repayments on credit cards, cars and other debts are also higher, with consumers also paying more for food, water, electricity, transport, school fees and insurance. About 9.85 million South Africans have impaired credit records, with the number of impaired accounts being over 20 million, revealed the latest statistics from the National Credit Regulator.
Funnily enough, the banks do not want your home. Yes, they want your debt repaid and they want to recoup outstanding balances, but the process of taking your home and reselling it to get back debt is something of a headache for banks, something they would much rather go without. But with so many consumers being hush hush about their financial stability, banks often have no choice when the debt is too far gone. While most homeowners worry about not being able to meet their home loan obligations, a scary majority hide financial stresses in fear of losing their homes to the bank. With so much fear generated around the banking industry, alongside deep seeded distrust, homeowners will hide their struggle rather than take the chance of repercussions – the problem here is that this often leads to repossession of assets.
The best bet is to bank on your bank. If you are in a situation where you may not meet payment requirements, for whatever reason, the best thing to do is approach your bank as soon as possible. Speaking to your loan manager, there are endless ways to make this work easily for all involved. Whether adjusting repayment amounts or periods to suit your finances, talking to your bank helps you both find a mutually beneficial scenario. You don’t want to lose your home and the bank doesn’t want the headache of recouping costs from assets, so help each other out. Protect yourself from getting over indebted and ensure that dealing with your creditors becomes aneasy an open process.