What do I do If I experience a Change in Circumstances?

Table of Contents

Change in Circumstances 

What should you do when you are experiencing a Change in Circumstance?

What we will do when you experience a Change in Circumstance

In the event that you are retrenched

Payment holiday

Change in Circumstances 

As Debt Counselling is a legal process, consumers need to make full payments on time each month. A Change in Circumstances refers to an event or circumstance that will prevent you from making your full monthly debt repayment on time.

When applying for debt counselling, all basic living expenses such as groceries, insurances, water and electricity, cell phone costs etc., are taken into consideration. A Change in Circumstance can relate to an unforeseen expense such as an insurance excess, medical bills, a reduction in income, retrenchment etc.

What should you do when you are experiencing a Change in Circumstance?

1. You need to notify our office that you are unable to make your monthly payment towards your debt in full and on time.
2. You must provide us with the reason you are unable to make your monthly payment.
3. We will require any supporting documents you may have that is preventing you from making your monthly payment. Supporting documents will include quotes, proof of payments, formal letters from employers, bank statements etc.
4. You will need to notify us of the period you will not be able to make payment.
5. Finally, you need to inform us if you can make up for the missed or short payments as your accounts with your credit providers will fall into arrears.
   
   

What we will do when you experience a Change in Circumstance

1. We will issue a document called Form 17.3 to your credit providers. A Form 17.3 is a Change in Circumstances document. It notifies credit providers that you are unable to make full payment on time.
2. Form 17.3 is not a legal document. It is merely a letter of courtesy informing credit providers of your current situation.
3. In addition to issuing Form 17.3 to credit providers, we need to provide supporting documents, an amended payment proposal outlining the dates of short/missed payment, and the dates payment will resume or if any additional payments will be made to catch up on the arrears.
4. Credit providers usually provide a response within 10-15 business days as to whether they will grant the payment break or not.
5. We will check if you have credit life insurance on your accounts as this insurance could cover you in the event of retrenchment/loss of income, disability, maternity or death.
6. We will keep you informed on responses from your credit providers.

If you are retrenched

1. In the event of retrenchment, we will inform you if any of your credit agreements under the process have credit life insurance linked to the account.
2. Most credit life insurance policies will cover your monthly instalments for 6-9 months, and some may even settle the debt for you.
3. Unfortunately, we are unable to assist you with the claim on any retrenchment benefits as insurance is considered a service agreement and we do not have any authority to liaise with service providers.
4. We are only able to let you know which account has credit life insurance linked to it so that you may claim the retrenchment benefit.

Payment holiday

1. Unfortunately, Debt Counsellors are not able to grant payment holidays/breaks to consumers. The discretion lies solely with credit providers.
2. Debt Counsellors can however request a payment holiday/break on behalf of the consumer with the credit provider.
   
   

If you have any further questions kindly send an email request to queries@vantagedebtmanagement.co.za or give us a call on 021201743