Economists are predicting over seven million job losses, forcing many into debt regardless of previous financial strength and ultimately affecting credit scores. Many might be unaware that credit life insurance is available to them.
Banks will be hard pressed to grant loans to small and medium-sized businesses, making it harder for them to get back on their feet.
Consumers who are struggling are often reluctant to seek help, because they are embarrassed by the situation they are now in or are not aware of the help that is available or how to access this help.
South Africa is fortunate to have a debt counselling sector that is highly regulated and stands out in the international arena. Finding a debt counselling service need not be a difficult process.
Taking personal responsibility for financial decisions is vital, as well as adopting self-disciplined money management. Avoid unnecessary and pointless actions by seeking financial relief advice before making big financial decisions.
Access to Credit Life Insurance
One option open to some, according to the National Credit Regulator (NCR) is to investigate using provisions attached to credit life insurance policies. Credit life insurance covers debt in the event of unforeseen circumstances such as death, retrenchment, unemployment, inability to earn an income and disability.
NCR chief executive Nomsa Motshegare is of the option that many consumers may not be aware that they have credit life insurance already in place and that the cost of this is included in the premium of existing policies.
Before cancelling any policies contact your provider to confirm whether credit life insurance is in place and what process needs to be followed to access this benefit.
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