Struggling with a car repayment? Here’s how to get back on track
Struggling with a car repayment? Here’s how to get back on track
Life has a way of throwing the unexpected at us. A medical bill, a job change, or simply a month where the numbers just don't add up. If you've missed a car repayment or are worried you might it's important to know that this does not have to spiral into a crisis. What matters most is what you do next.
When a repayment is missed, your account moves into arrears. This triggers a structured internal process. Your financier will typically make contact to understand your situation and remind you of your obligations. Repossession is a last resort, not a first response, and there are several steps and options explored well before it is ever considered.
It is worth noting, though, that arrears do have consequences that begin quickly. Your monthly payment profile at the credit bureau will reflect your arrear position, which can affect your credit record. Arrear interest will also be levied on the outstanding amount in line with the terms and conditions of your agreement. This is why the most valuable thing you can do when financial difficulty arises is to reach out to your financier as soon as possible. This cannot be overstated. The earlier you make contact, the more options are available to you and the more willing your financier is to work with you towards a solution.
A payment arrangement is a practical, structured way to get your account back on track. There are a few important things to understand about how it works:
- Your normal monthly instalment remains payable throughout the arrangement. The payment arrangement covers the additional arrear portion on top of your regular payment. Any changes to an agreed arrangement require the bank's approval, and it is your responsibility to ensure the arrangement is honoured. Adhering to the agreed terms is essential, as failure to do so would constitute a breach of the arrangement.
- It is also important to note that a payment arrangement does not alter your underlying credit agreement, and your credit bureau profile will continue to reflect your arrear position during this period. Being aware of this helps you plan accordingly and reinforces why early action is so beneficial.
Experiencing financial pressure at some point is a reality for many South Africans. What defines the outcome is not the missed payment itself, but how promptly and transparently it is addressed. Acting early protects your credit profile, keeps more options on the table, and demonstrates to your financier that you are committed to resolving the situation.
*Information provided by the publicist.
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