Blacklisting and Debt Counselling
Blacklisted, now is that not just a word we all hate to hear! Blacklisted is the common term people use to describe individuals or companies who have a bad credit profile / record. And while everyone understands the term, there isn’t really a BLACK LIST with everyones name on there . But if you are missing payments, you could well end up being blacklisted. If your expenses are more than your income, most of your income goes towards paying debt, or you just cant cope with your finances,
Go see a registered debt counsellor, who will:
- Negotiate with your creditors for lower monthly installments
- Put you under debt review, then no legal action may start against you for at least 60 working days from your date of application
- YOU wont have to deal with the calls and letters from creditors and debt collectors, your debt counsellor will do that.
- Your debt will be restructured, so that you have more money left to live on – eg, for food, travelling expenses etc
Your credit record is broken down into 4 major categories: ( You are entitled to one free credit profile from the Credit Bureaus once a year )
- Payment profile: Your payment profile changes from month to month as you make payment on your accounts. If over a period of a few months you have a poor payment profile because of skipping payments or short payments – your ability to get more credit will be affected.
- Adverse information –This was previously also known as defaults. When you have adverse information on your credit profile, you might still be able to obtain more credit – but the cost to you might be much higher. Your interest rate will be higher and you will probably be asked to pay a bigger deposit.Generally, once you pay off the account – you can ask the creditor to remove the listing
- Judgments – are the 2nd most serious type of listing. A judgment is a court order obtained in a court of law, forcing you to make payment and granting the creditor the right to take action in order to get the judgment debt. In all probability, you wont get any more credit if you have a judgment against you. You also need to go to court to get a judgment against you removed
- Notices – These are the worst listings. If you have been placed under Administration or Sequestration, you can not and will not get credit anywhere. In fact, a credit provider is acting illegally if he lends you money
Many consumers are unaware that all types of data and listings on your credit record, can only stay there FOR A CERTAIN amount of time:
Adverse information – also known as defaults: A maximum of 2 years
Judgments: A maximum of 5 years
Notice of Sequestration: 10 years
Notice of Administration: 10 years
So, before it gets to this stage, do yourself a favour and become pro – active about your debt and your finances. Only once you are informed and educated, can you take the correct financial decisions which ultimately affect your whole life.