One of the most popular questions asked on the DebtSafe website and social media platforms, is the issue about people losing their jobs and being over-indebted.

“We receive numerous queries about people who lose their jobs and who are uncertain of what will happen to their debt – they are scared that they will lose everything,” says Wikus Olivier, Debt Management Expert at DebtSafe.

“When you are retrenched, you should immediately send a letter of confirmation of retrenchment written by your employer to the bank or credit provider to arrange an alternative repayment schedule,” he advises.

Pay the credit provider as much as you can afford while looking for employment. A summons will only be served to you after a few months. After receiving a summons, it is vital not to miss the court appearance; when in court, you can explain the situation and ask the court to give you three to five months’ breathing space to find a job. A credit provider can’t repossess any assets without a court order.

Remember to keep a written record of all correspondence with the bank and sheriff to convince the judge at the court that you have been trying to get out of debt or tried to arrange something.

“As soon as you are employed again, I suggest that you consider debt review to take control of your budget,” adds Olivier. The DebtSafe team assists customers to make financial and debt assessments, with which the Company will be able to help find the best option going forward.

“In the meantime, try to save as much money as possible every month. The ideal situation is to have enough money saved to get you through at least four months when you don’t have an income,” he says.