Debt rescheduling: adjusting to financial changes

Debt rescheduling is a powerful tool for adjusting loan repayment terms to better suit your current situation.

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Life is full of surprises and financial challenges can happen when you least expect them – debt rescheduling can help.

What is debt rescheduling?

Debt rescheduling means working with your credit provider to change the terms of your loan or credit agreement. It could involve extending the repayment period, lowering monthly payments or taking a payment break. The goal is simple: make your payments more manageable while ensuring the loan is repaid in full.

When to consider rescheduling

Debt rescheduling isn’t for everyone, but it can be helpful in certain situations. Here’s when to consider rescheduling:

  • Job loss or reduced income: If your income takes a sudden hit, rescheduling can help align your payments with what’s affordable for you now
  • Unexpected expenses: Emergencies like car repairs or medical bills can throw off your budget. Rescheduling can free up cash to cover these expenses
  • Rising interest rates: If you have a loan with a variable interest rate and your payments are increasing, negotiating for a fixed rate or other adjustments can ease the pressure
  • Multiple debts: If managing several loans feels overwhelming, rescheduling can simplify your payments and give you breathing room
  • Major life changes: Events like having a child or getting divorced can shift your financial priorities. Rescheduling helps you adapt your repayment plan to these new realities

Benefits of rescheduling

Debt rescheduling offers several benefits to help you manage your finances:

  • Lower monthly payments: Adjusting your repayment term can make it easier to manage your budget
  • Prevents missed payments: By staying on top of your payments, you protect your credit score and avoid the negative consequences of missed payments
  • Increased flexibility: Rescheduling gives you the freedom to manage other financial priorities or unexpected expenses
  • Protecting your credit: A revised payment plan helps protect your credit rating and shows your commitment to your financial responsibilities
  • Stress relief: Knowing your payments are manageable reduces stress and helps you focus on long-term goals

Adjusting your payment schedule

Here’s what you need to do to adjust your payment schedule:

1. Review your finances

Start by looking at your income, expenses, and debts. Decide how much you can realistically pay each month.

2. Talk to your credit provider

Contact your credit provider as soon as you realise you won’t be able to make your loan repayment. Be honest about your situation and provide any necessary documentation, like proof of income changes or unexpected costs.

3. Explore your options

Work with your credit provider to identify the best debt rescheduling solution. Some options include:

  • Extending your loan term: Lower your monthly payments by spreading them over a longer period
  • Restructuring with lower payments: Adjust your loan to pay a reduced or minimum amount over a set period
  • Taking a payment break: Temporarily pausing payments can help you recover financially

4. Understand the new terms

Make sure you fully understand how the new terms will impact your loan, including any long-term costs like added interest.

5. Set a budget

Create a budget that prioritises your new payments. Sticking to this plan ensures you won’t fall behind on your debt repayment again.

6. Monitor your progress

Keep an eye on your financial situation. If things improve, consider increasing your payments to pay off the loan faster and reduce interest costs.

The bottom line

Debt rescheduling is a practical and proactive way to manage financial challenges and avoid missed payments. By adjusting your loan terms and taking charge of your financial situation, you can maintain control and stay focused on your goals.

For more information on debt rescheduling, reach out to us using one of the following options:

  • WhatsApp: Chat with our Credit Collections team on 072 822 1582 – remember to look for the verified blue tick
  • SMS: Send your 13-digit ID number to 30679 and follow the prompts
  • Call: 0860 66 77 18
  • Email: CentralisedCollections@capitecbank.co.za. Include your loan account number in the subject line
  • Visit a branch: Find your nearest branch

Note: We'll respond to your SMS or email within 48 hours.

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