Learn How To Get Out Of Debt

Being Blacklisted – Know The Facts

A blacklist is a register of persons who have been 'red-flagged' as a credit liability and are therefore denied access to loaning money through banks and other financial institutions. In South Africa you may be credit blacklisted because of your failure to settle your debt. However, being blacklisted is not something one should be ashamed of. Many professionals find themselves on a credit blacklist. Teachers, credit controllers, and admin people are just some of the professionals that find themselves in this situation. Statistics indicate that one in four people in South Africa are credit blacklisted. This suggests that there are about five million people whose names currently appear on a credit blacklist in South Africa.

Many people don't realize that they are experiencing debt/credit difficulty until it's too late and they find out that they are blacklisted. Owing money can lead to being blacklisted by authorized lending institutions thus making it very difficult to acquire loans. A seemingly insignificant missed credit card payment from five years ago could hinder your ability to acquire a home loan or vehicle finance. The good news is that there are easy steps you can take to repair your credit rating and consolidate your debt so that your name is removed from the blacklist.

Firstly, checking your credit history is essential so that you know where you stand in the eyes of a financial institution. The credit report will indicate whether or not your creditors view you as a credit risk and how responsible you have been about consolidating your debt. I suggest applying for a credit report before applying for a loan so that you know your credit status before potential lenders check you out. There are several Website sources you can go to, to obtain a credit health report. For a nominal fee you can find out your credit history within an hour.

It is also important to identify and understand the type of debt you owe. There are various types of debt that a person living in South Africa can be in arrears for. Banks will investigate all these areas when considering whether or not you are viable for a loan - Personal loans, credit cards, vehicle finance, furniture accounts, in-store accounts, mortgages, and overdrafts.

Remember that filing for bankruptcy is not always the best solution to your financial problems and should only be considered as a last remaining option. Seek the assistance of a debt counselor. They are trained to guide you out of debt and are therefore well positioned to provide you with the best advice after assessing your financial circumstances.

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