Creditors are as lenient as the courts when it comes to consumers. And like the courts, creditors take many factors into consideration when dealing with consumers in order to reach a fair outcome.

When you default with your account(s), it is the creditor who is the first to contact you to make an arrangement to pay. Moreover, they go out of their way to remind you of your commitment, and all they ask is that you repay them according to the arrangement you eventually enter into.

However, not everything you undertake will go according to plan and you may end up failing to make payment on time or at all.

So, who do you contact first? A friend, a family member, or your creditor(s)?

A friend or family member may assist you financially or by way of advice. In addition to their assistance, they are likely to ask you what the creditor says about your situation. 

However, your creditor should be the one you contact first. Creditors will, often, share the same advice and encourage you to enter into an arrangement with them. But one thing they will not do is advise you to apply for Debt Review* as they will always want payment immediately or in the shortest period possible.

Seldom, if ever, will a creditor request that you apply for Debt Review*, as much as they may be obliged to notify you of that right should the National Credit Act be applicable to the transaction.

In most instances, the advice a creditor gives is generally out of leniency and at times it is an exercise of a right that both parties have in terms of the contract entered into initially.

It is therefore in your best interest to embrace that leniency from all your creditors, by contacting the creditor as soon as you default or shortpay and thereafter honouring the arrangement you enter into with the creditor.

*An article on the practical consequences of Debt Review when it comes to creditors will be discussed in the coming weeks.

For more information on creditor and consumer relations, please contact Anda Makrwede on This email address is being protected from spambots. You need JavaScript enabled to view it. / +27 41 396 9227