No matter how hard your financial situation may be, never default in paying your monthly account to the point that you get a court judgment against your name.
This is a warning from chairperson of the National Debt Counsellors Association NDCA, Benay Sager. Sager said that in most cases consumers are at the mercy of the lender when it comes to clearing their name from court.
In SA, consumers can get a bad credit history through a payment default, which lenders inform credit bureaus about monthly for record keeping. Constant payment defaults can lead to lenders issuing summons, which leads to a court order or judgment against the consumer. This means the court will instruct the borrower on conditions and deadlines in which to pay back the debt. This order is recorded by credit bureaus as well and they immediately blacklist the consumer, leaving him or her with little prospect of getting credit in the future.
