Having assets repossessed is something that no one wants to face. At Zero Debt, we understand the trauma associated with this and would like to offer some practical tips to help you safeguard your assets and regain control of your finances. Losing your house, car or other asset is something we would like to help you avoid. 

Communicate With Your Creditors

It is easy to fall into the trap of avoiding your creditors when you cannot repay them; however, this will worsen the situation. As soon as you notice a financial decline, contact your creditors directly, and you may be pleasantly surprised to find that they are willing to offer a temporary solution to help you out. 

Remember, creditors prefer you meet your obligations over repossession, as it is a complicated process for them too. Open lines of communication often lead to solutions that benefit you both. 

Read The Fine Print & Know Your Rights

Before entering any financial contract, it is vital to read the fine print and understand your rights and obligations. Familiarise yourself with the legal procedures surrounding repossession as it applies to your situation. Being informed helps during negotiations but may also provide you with the knowledge that helps you out of this tricky situation you find yourself in.

Seek Professional Advice

When you first notice your downhill slide in a financial sense, the best advice is to seek professional help. This comes in various forms, including the following:

• Debt Counselling – Debt counselling involves seeking help from a professional credit counsellor or a debt counselling company like Zero Debt. You will receive advice on budgeting, money management and be offered various solutions to help you better handle your debts. 
• Debt Consolidation – Debt consolidation involves merging some of your debts into a single, larger loan. This new loan is used to pay off existing debts, leaving the borrower with a single monthly payment and a lower interest rate overall. However, it is essential to note that you cannot include your vehicle finance or home loan in the bundle with debt consolidation. These must be managed separately.
• Debt Review – This formal debt rehabilitation method is regulated by the National Credit Act (NCA) in South Africa. It helps over-indebted people restructure their debt, create a manageable repayment plan, and protect their assets. Your vehicle and home loan can be included and are thus protected from being repossessed (unless legal action is already underway with either of these assets). Debt review is highly recommended as the most effective way to safeguard your assets when facing financial difficulties.