The Honest Truth About Fixing Your Credit Record
If you have ever used a store card (Edgars, Truworths, Pick n Pay etc…) or credit card (Mastercard or Visa) then your record of purchasing and repayment of that debt is recorded at one of the credit bureaus.The credit bureaus are independent companies that aim to operate in accordance with the law and provide a credit service to subscribing businesses. There are two major bureaus in South Africa that gather information regarding your repayment habits in order to build your individual credit profile namely; Experian and TransUnion ITC.
Whether you pay on time, late or not at all, every movement that you make with regards to your payment habits will be stored and updated at the credit bureaus.
Take note: - Due to the fact that the bureaus act independently and their subscribing base of businesses varies, you will find that it is very common for your individual credit profile to differ between the bureaus. You can easily repair your own credit record however if you feel that the debt is too heavy a burden to bear then perhaps seek the guidance of a debt councillor. Most people struggle to consistently manage their finances so it may not be such a bad idea as the debt councillor will assist in implementing a strict plan.
Alternatively,
why not empower yourself and follow this proven debt reduction plan and
set yourself debt free! (and learn valuable lessons)
Register Yourself Now as a
Bond-Free-Homes Buyer!
7 Steps To Paying Off Debts And Improving Your Credit Profile Using the Snowballing Strategy! (And sticking to it)
Not only
will you be able to pay-off all your debts in half the time
but by using this compounding technique in your favour you will also be
able to settle your debts for up to 60% below the capital amount owing!
If you
follow this plan methodically and strictly you will find that you can
very quickly not only pay-off your debts but you will also free up more
monthly cash for yourself! Most may say this is too simplistic and
there is much more to paying off your debts, however I have summarized
debt repayment down to the very basic core of what is required in order
for you to succeed at it.
The
road is long and the ultimate way other than reducing your expenses and
paying your debts off is also to increase your income as soon as
possible.
The
road is long and the ultimate way other than reducing your expenses and
paying your debts off is also to increase your income as soon as
possible.
1. Draw Your Free Credit Reports from Both Credit Bureaus. (Experian and TransUnion)
a.
Yes, I said FREE. By law you are allowed to receive 1 free credit
report every year in the month of your birth date. If you missed it try
anyways and at worst it costs less than R30 each!
b. Outline who has listed you and whom you have defaults with. Your
only goal is to focus on the companies that have adverse information on
your name. If you don’t understand what the report means then
call the bureau call centre and ask for a more detailed explanation of
what each indicator means.
2. Carefully Work out your Monthly Expenses and Budget.
a.
Detail all your outgoing payments in the following manner.
i. Creditor
ii. Capital owing (total outstanding balance)
iii. Interest rate charged
iv. Available credit limit (how much more can you
spend on that card)
v. Adverse listing at bureau (y/n)
Home Purchasing
The Easy, Affordable Bond-Free Way!
3. How to Increase your Cash Flow Immediately!
The same rules
for a cash flow apply to business as well as you. No or little cash
flow and the business will start sinking slowly. Cash flow is the
amount of money you have available every month that is available to pay
off expenses and the difference left over after all payments are made.
[link to google definition]
a. To increase your cash flow on a fixed income you will need to work
out which debts can be moved from a higher interest rate (19.5%) to a
lower interest rate (17.5%) debt in order to free up more cash every
month without costing you more money to do so!
b. Some debts may be literally handicapping the entire process so you
may have to temporarily re-negotiate lower temporary (6 months)
repayments with one or two creditors in order to free up more cash that
in turn can start paying off other easier debts quicker. Be warned
though that you must calculate the full impact of this before doing so
as you may just land up compounding your original problem even further
later in the future.
c. Re-negotiate a better interest rate with the current creditors.
Don’t be shy to request a better interest rate. Accepting
‘No sorry we can’t do that for you’
should not deter you. Using your weak financial position (which is
true) as ammunition can get you further than you think. (this option is
preferred over option ii above)
d. Arrange for the interest to be halted permanently! This does seem
like a fairytale however it can be done. I have personally arranged for
the interest on a R20,000 debt of mine to a well known institution to
be stopped, PERMANENTLY!! Again if you don’t try you will
NEVER know!
4. Design your Repayment Plan
The same rules
for a cash flow apply to business as well as you. No or little cash
flow and the business will start sinking slowly. Cash flow is the
amount of money you have available every month that is available to pay
off expenses and the difference left over after all payments are made.
[link to google definition]
a. To increase your cash flow on a fixed income you will need to work
out which debts can be moved from a higher interest rate (19.5%) to a
lower interest rate (17.5%) debt in order to free up more cash every
month without costing you more money to do so!
b. Some debts may be literally handicapping the entire process so you
may have to temporarily re-negotiate lower temporary (6 months)
repayments with one or two creditors in order to free up more cash that
in turn can start paying off other easier debts quicker. Be warned
though that you must calculate the full impact of this before doing so
as you may just land up compounding your original problem even further
later in the future.
c. Re-negotiate a better interest rate with the current creditors.
Don’t be shy to request a better interest rate. Accepting
‘No sorry we can’t do that for you’
should not deter you. Using your weak financial position (which is
true) as ammunition can get you further than you think. (this option is
preferred over option ii above)
d. Arrange for the interest to be halted permanently! This does seem
like a fairytale however it can be done. I have personally arranged for
the interest on a R20,000 debt of mine to a well known institution to
be stopped, PERMANENTLY!! Again if you don’t try you will
NEVER know!
Register And Learn How To Own Your Own Home DIY
=>
Fast Easy Qualification
=> No Bank Procedures
=> Blacklisted Fine
=> On Your Own Payment Terms
5. Credit Listing Removal Please!
Important Note – Before you start repaying your first creditor off faster than they expected, contact them and try (nicely) to negotiate with them that in the event that you pay off this overdue account quicker than even they expected that they please remove your adverse listing! (this doesn’t always work at first but try and try again) If they agree then get it in writing. Mention the fact that their payment is one of the most important ones to you and you really wish to honour this payment (as you do) and set things straight.
6. Negotiate the Debt Amount Down and then Pay it!
a.
It is possible to settle your debts at well below what you owe. This
usually has more effect when someone else (debt councillor, lawyer,
willing friend or family member) does this for you as they can come
across in an objective and problem solving manner to the creditor.
b. You can attempt to negotiate that the owing balance be reduced by
10%, 20% or even 50% of the owing amount. Not every creditor will agree
to a reduction however some will agree if you have a valid and strong
case as to why you cannot repay the full owing amount any longer
c. Once you have negotiated your debt down and agreed in writing then
also request that once you repay the newly agreed amount off that they
please remove your negative listing that they placed on the credit
system.
7. Repeat until Complete!
Once
you have repaid the total capital off of the first creditor then start
with step 3. again and again and again until you succeed with all your
debts a.
You will soon realise that the following is happening.
i. You are paying off and closing accounts with creditors faster and
faster (snowballing) once your money gathers momentum.
ii. You are getting your name cleared as you go along because you were
smart enough to request that your creditor please clear the adverse
information in your credit listing.
iii. You are freeing up more and more cash flow every month.
Site Navigation
Is A
Blacklist Preventing Home Ownership For You?
A few forgotten defaults and you won't be able to qualify for home
ownership. Find out what alternatives you have and also how to repair
your credit record.
(Article) Current Properties To Let
& Buy
Uploaded are just a few of our properties available (some taken
already). Please note that our houses are taken very quickly as there
is a small release every month and if you wish to be informed and
in-line to receive detailed property listing information then you MUST
register first.
(Article) Are You Sure That You Want A Bad
Credit Home Loan to Purchase A House?
If your credit score
is 'bad' do you know what the real costs of obtaining Blacklisted Home
Loan Finance over the long term could be?
Rent
or Buy A House? (Your Burning Questions Answered)
Yes renting can be far cheaper BUT if you buy a house you can build up
equity in your home over time but which is the best for you now?
Why
Give Away Thousands In Rental When You Can Own - Rent To Buy?
If there was someone willing to give you the opportunity to buy instead
of renting would you consider this option? At least inform yourself of
the possible options as a renter just in case.
Is
A Judgement Preventing Home Ownership For You?
Just one unrelated Judgement and you will not get a bond easily for
many years. Don't loose heart there may be another way for you.
How Can You Afford To
Own A House With Such High Costs
Have you calculated
the costs of owning your very own home and how much you will need in
order to purchase in todays strained economic climate.
Does
the National Credit Act Mean That You Will Have To Buy a Less
Conveneint Home?
Previously you
qualified for a decent home and now you may have to settle for a
smaller house in a less desirable area.
7 Proven Steps to
Repair Your Credit Profile And Pay Off Debt Faster!
Are your debts strangling you? You need a simple and effective plan to
manage your debts and still live decently. Find out how this debt
repayment technique has assisted someone to repay hundreds of thousands
of rands in the shortest possible time.