Clinic consultation

MONEY CLINIC | I want to buy a house and a car but I gave up considering debt. And now?

Consolidation loan is the name given to large personal loans (usually over R150,000) with usually high interest rates (usually 18-24% per annum).


A Fin24 reader wants to buy a house and a car but has no access to credit after opting out of debt review. He writes:

I applied for a debt review to help me with my debts. I eventually pulled out to make the payments myself. I was allowed to withdraw without being informed of the consequences of my decision. I am now assisted by another company, who did a credit check and discovered that part of my creditgold had still not been paid. I have to buy a house and a car, but I can’t. What should I do?

Kabelo Teme, communications liaison officer in the office of the Credit Ombudsman, respond :

We advise the consumer to contact the National Credit Regulator (NCR) to check if they are still on the NCR Debt Help System. It is important to know that when a consumer decides to register for a debt counseling service, they will not be granted any further credit until they have paid off all of their debt within the framework of the debt counseling process. For this reason, consumers who are subject to debt counseling are advised to remain so until they have repaid their debt and received a clearance certificate.

If they encounter any problems while under debt counseling, they should contact the NCR and file their dispute with them, even if the complaint is against the debt counselor, rather than opting out of the process.

Creditors who have not been paid should be contacted and arrangements made to repay the debt. The NCR will be able to help and advise on how to proceed.

Here are the contact details of the National Credit Regulator (NCR):

NCR contact details

Reception: 011 554 2700 / 2600

Call center: 0860 627 627

E-mail: complaints@ncr.org.za

Questions may be edited for brevity and clarity.

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