Debt: I've been handed over

BURDEN: BLACKLISTED IS NO LONGER USED, BUT THERE ARE STILL SERIOUS CONSEQUENCES

- Kristia van Heerden

» The fact that you're reading this means you are keen to find solutions.

The last few years have been tough. The Covid lockdown, load shedding and inflation have had a disastrous impact on our economy.

While we're on the road to recovery, incomes are still under pressure. For many South Africans, debt obligations have become an impossible burden. Finding out that you've been handed over can feel like the final straw.

This article covers what it means to be "handed over", as well as some strategies to cope with this situation and avoid more serious consequences in the future.

I can't deal

Panic, fear and sadness are common reactions to being handed over. During this crisis these emotions will be amplified, likely accompanied by feelings of hopelessness and a sense of unfairness if you have also lost your income. Take a few days to acknowledge how you feel about this situation. Too often we suppress our true emotions about our financial situation, which quickly turns into denial.

My debts have been 'handed over': What does it mean?

When a company that initially offered you credit approaches another company to take over the administration of your repayments, you've been "handed over". Companies do this with accounts that are in arrears after a number of attempts to collect the money.

They do this because they don't have the resources to chase people for payment.