

Question
Hi
I have a lot of debt which even if I wanted to, cannot pay back. I earn very little money and most of it goes to food, car and my son's créche.
I incurred most debt because of wanting to help at home. I was offered loans, credit cards, etc without even applying and I used them, but now I cannot pay a single one.
I need to find out if it's at all possible to speak to my bank manager to ask for assistance with consolidating my debts, or if my car can be used as security for that loan. I have a lot of judgements and am blacklisted.
Answer
Make a list of your debt, what you are supposed to pay and what you actually do pay every month and also the interest rate involved. Then look at it all and find out what your car is worth and if need be, see if you can use your car to rather pay off the other debts. I understand that it is hard when credit is offered to you but one accepts an enormous responsibility when spending if you don't know in advance where it's coming from. Even people who lose their jobs are in trouble because they make debt on the grounds of income the HOPE to receive in future.Sacrifices are going to be made by you to be able to pay the debt. I don't know if banks accept a car as security because they cannot take cession (ownership) over the car and you can basically sell the car, crash it or cancel insurance which means that it is high risk of them to accept as security. They have not used it as security as far as I know but you can check with your manager.
- Charné van der Walt

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