“It’s wise to be wary and investigate all your options, especially as these could impact your credit score. If you take a payment holiday, you will still be charged interest on the balance of your loan, including your usual monthly fees.”
The best solution is to continue to pay your credit provider if you can. Ndimande advises people to explore their options, including their credit agreement, to see whether the product is covered by insurance which protects you from unforeseen circumstances such as death, permanent disability or loss of income. Approach your credit provider to find out whether you can lodge a claim against this insurance first.
Sanlam’s credit score dashboard’s coach facility plays an important role in guiding you according to your needs. It gives clients an opportunity to engage with a human coach who can suggest ways to better manage debt to improve one’s credit score.
“Many people know their credit score, but don’t know exactly what to do with this number once they have it,” says Ndimande.
“Our coaches act as a credit management guide by supporting and motivating clients, providing them with the tools and information to make informed decisions to improve their credit profile and better their overall financial position.”
She concludes that now is also the time for people to partner with their financial planners to strengthen these relationships and draw up a holistic plan to stay on track to achieve their financial goals.