We are now well into our Coronavirus lockdown.
Most people are staying inside, but others aren’t, for various reasons.
Let’s be honest, a lockdown for four people in a three-bedroom house with running water, electricity, Wi-Fi and ample food is far more comfortable than a lockdown for seven people living in a shack or small council flat.
The lockdown is easier for those with money in their bank accounts than for those who need to wait in line for social grants to pay out before being able to buy much-needed groceries.
Our circumstances may differ, but most of us (besides the ridiculously rich) are worried about our finances and how we are going to make it through the next few months.
The financial struggle is real!
If you are sitting at home, with the no-work-no-pay scenario and you are worried about how you are going to pay your debt during the lockdown, then you should firstly be looking at the credit insurance on all of your accounts.
In South Africa, all credit must be covered by credit insurance.
There is cover which will kick in on death and disability, and cover that will kick in on unemployment and retrenchment.
Policies differ and you are not going to know what cover you have until you go through your policies or contact your creditor.
Credit insurance cover will apply to your store cards, bank-issue credit cards, personal loans, vehicle finance and also home loans (bonds).
You were probably offered insurance in the fine print, signed for it and don’t even realise that you have been paying for it all this time!
If you don’t have your paperwork on hand, contact your creditors immediately and get a copy of your policies and see if you are covered.
If you are, then put in a claim, it is your right!
All your debt could be covered by credit insurance you weren’t even aware that you were paying.
You won’t know unless you make the effort to find out.
Absa bank’s website says: “If you become unable to earn an income between 27 March and 30 June 2020 - even if you have not been retrenched - and you have an active Credit Protection Plan, you can now submit a claim. Contract work, unpaid leave and temporary absence from work are also covered. If you qualify, you can claim for up to three months’ minimum instalments.”
Now is the time to communicate with your banks, stores and other creditors and save yourself from sleepless nights!
WATCH: What are your debt options during the lockdown