BAD CREDIT LOANS IN BLOEMFONTEIN
How much bad credit are you in ? You can be saved ? Don’t be pushed around.
In theory a debt counselor is supposed to be the savior of all man and the provider of the answer to the one question that evades South Africans, including consumers in Bloemfontein, who after the quarterly Regional Credit Status report indicated the city to have one of the lowest recouping losses in bad debts, “How much can you pay?” Nthupang Magolego, senior legal adviser at the national credit regulator, opens up the excerpt of the report with “New policies will give the consumer who has not applied for debt review an opportunity to consider various options that may be available. The consumer who has not applied for debt review will not be flagged at the credit bureaus.” A newly released ranking shows Bloemfontein residents have a little less post-holiday debt blues than their neighbors. Bloemfontein is the only Free State city to make the top 25 in report.
The underwriting financial third party contributor of the report, CardHub partnered with the third-largest credit bureau in the country, TransUnion, assisted in calculating the average credit card debt and number of months required to pay off those balances in 2,457 S.A cities. CardHub estimates that the cities ranked collectively owed more than R900 billion in credit card debt at the end of 2015 Average credit card debt in Bloemfontein was R5,526 with 22 payoff months, according to CardHub’s report. Brookhaven also made the list at No. 1,033, with an average credit-card debt of R7,743 and 41 payoff months. Welkom ranks even lower at No. 2,448 with an average credit-card debt of R7,502 and 84 payoff months. The projections of the city’s economic growth, however stagnant they may seem in the mid-term, look positive if one considers how different a picture the country’s financial community was looking at in 2013. A couple years after the World Cup came and went with its empty promises in developing sustainable growth for Bloemfontein.
The report covered many positives and in the latter parts it provides a compiled list of suggestions on how to manage bad debts as a consumer. However general and simplistic the advice may be, at times all that is needed to transform a complex issue as the Bloemfontein financial turnaround is not a perplexing algorithm of suppositions but a straightforward system or process that is easy for the subordinates of the city to adhere to:
– Assess customers’ creditworthiness and set appropriate credit limits. You can ask new customers for trade references or pay for an online credit check. Consider setting a lower credit limit for new customers until you are confident that they can and will pay you on time.
– Draw up clear terms and conditions (using your professional advisers if necessary). Make customers aware of them and get customers to agree to your terms of trade. Publicize your terms on your website and send a copy with your goods and invoices. Include a clause stating that you continue to own goods until they have been paid for, and requiring customers to draw your attention to any delivery problems promptly. Remind customers that you have a statutory right to charge interest on late payments (even if you do not plan to enforce this right).
– Check where and to whom you should send your invoices, you may need to send it to the buyer for approval before it will be paid or direct to the company’s accounts department. – Formulate a strategy in case your debtor continues to delay payment. You might have to write off small debts that are not cost effective to chase. You could also consider putting the customer’s credit facility on hold preventing any further credit sales until the account is cleared. An alternative is to negotiate part-payments or to use an arbitration or mediation service. This can often help to resolve disputes without the expense of going to court.
Most businesses will have experience of customers who – for one reason or another – refuse to pay up or who pay their bills long after they are due. These top tips would have been instrumental in helping businesses in Bloemfontein facilitate the task of reducing the risks of bad debts for its consumers.