Under lockdown conditions, many people are struggling to make ends meet and keep up with debt repayments. It is, however, as far as possible, not advisable to get yourself blacklisted, says advocate Pat Molepo, a registered debt counsellor and the CEO of the Community Law Centre in Seshego.
Being blacklisted means you are a liability when it comes to paying your debt, and blacklisting serves as a track record for not paying your accounts and meeting your financial obligation, he says.
“One is blacklisted when certain negative information is placed on your credit bureau profile. This is a listing of your credit history, both negative and positive. Immediately when you fall into arrears, you will be listed with any registered credit bureau. This information is placed by your creditors whose accounts you did not honour as per agreement or by the legal practitioner who has been tasked to collect on the account.”
When you are blacklisted, you won’t be able to qualify for credit and blacklisting could even affect your job prospects. You will not be able to buy a house, car, furniture or anything on credit due to your bad credit history. In some instances, it will prevent you from marrying in a community of property as debt is seen as part of a joint estate.
Read more article on Citizen News