Many South Africans are living in debt and poverty, and it is a pity that many are unable to fully pay off their debts as they live from pay check to pay check. The biggest mistake that many debtors make is to avoid their creditors at all costs, debtors cease to communicate as soon as creditors pursue them for the settlement of their debt.  

In practise, this is the perfect time to reach out to your creditor to avoid any section 65 steps taken against you. Section 65 steps is a process in which a debtor’s account has been handed over to the attorneys and the debtor is brought before court to account for their debt and be ordered to settle the debt. The unfortunate part is that interest accrues and further costs of recovery are incurred in when the creditor makes efforts to get their money back.

What should a debtor do to avoid section 65 steps being taken against them?

1. Settlement agreement

   A debtor who is overwhelmed by debt may approach the offices of a debtor to arrange a payment plan and or an acknowledgement of debt in which he makes arrangements to pay off the debt in instalments where the debt will be settled within a specific period.

2. Adhere to the arrangement

   The debtor must ensure that he adheres to the arrangement made between him and the debtor. If there are times in which unprecedented financial circumstances arise which may impede the debtor from paying the usual amount, do communicate such information with the creditor.

3. Have an understanding of how much is due

Avoid being a debtor who does not know how much they are owing, or one that does not keep track of their payments. Being aware of how much you owe and keeping track of your payments will assist you to keep track of your statements from the creditor and understand them.

In this article you will note that you have the responsibility to do your part,  the creditor is consistently doing their part, ensure that you remain reachable and honour your word at all times.