What Options Do You Have Once You’re Blacklisted?
As one of the most dreaded terms in credit and finance, blacklisted, is one such that strikes the most fear into individuals around South Africa.
It is because, when you are blacklisted, you do not have the freedom to purchase anything on credit, nor apply for any type of loan, Being blacklisted thus eliminates your chance of purchasing or relying on credit, which is something many individuals cannot do, as their monthly earnings, simply does not make the cut for the standard of life they would like to live.
Living in South Africa, specifically, many households are also experiencing some type of financial stress, which makes it very easy for them to turn towards credit, or a loan, to compensate for that of which they cannot afford.
If you have been blacklisted, which usually occurs due to not making your payments on time, the best way to overcome it, is by being put in arrears.
Now, this might not seem like a solution, because when your accounts are placed in arrears, it means that it is now put on record, but as you are already recognized as a slow payer by the credit bureau and your creditors, having it monitored closely is a good idea.
What should you do when you are blacklisted?
If you’ve been blacklisted, your credit profile is probably looking a little tarnished, which can be resolved by paying your account on time and avoid missing any payments going forward.
If you’re paying your account on time, then paying extra to repay the initial amount off quicker, also benefits your account status and depending on how much you pay, it might also reflect positively on your credit score.
If you are recognized as a customer that pays their account late, you will have a default listing reflect on your profile, which may be valid for up to a year.
If you are in arrears for more than three months, continuing to fail to make payments, may also result in creditors taking your account to the collections department.
If your account reaches a debt collection agency, your profile may become more damaged, which will keep you from not being able to apply for any credit, nor loans, in the future.
To avoid this stage of debt collection, you should contact your creditors regularly to update them on whether you can’t make a payment, and when you will be able to again, as this will keep them from contacting debt collection agencies.
At this stage, you may also be advised to receive a debt review or negotiating your debt payments under administration, to help both you and your creditors resolve the amount owed, and work towards restoring your credit once again.