South Africa’s national lockdown has been an important, but diffcult, step in helping us flatten the curve and limit the spread of COVID-19, but the effect on our economy has been undeniable and many South Africans are feeling the impact on their monthly cash flow.

If you’re struggling to keep up your monthly payments, it’s important to be proactive, especially when it comes to managing your debt payments to avoid late fees or collection costs. That’s why Summit has compiled this lockdown debt management toolkit to help you create an action plan and navigate these uncertain times.

Step 1 – Prioritise your essential expenses

Plan ahead. As far as possible, write down your expected income and essential living expenses for the next three months. Food and shelter should always be your main priority. If you are renting, contact your landlord to find out about possible reduced rent.

Step 2 – Calculate how much you can spend on your debt

Make a list of all your debts, and how much you can afford to pay towards each of them. Prioritise your home loan and vehicle finance payments.

Step 3 – Let Summit ask your credit providers about credit insurance

It’s likely that you already have credit insurance policies on many of your debts, even if you are not aware of it. These policies are designed to help you pay your debt in case of unforeseen circumstances like death, retrenchment or loss of income. The only way to find out if you qualify for credit insurance payouts on any of your accounts is to contact each of your credit providers and find out. We’ve provided a list of contact details below if you wish to make contact yourself. Alternatively let Summit contact your credit providers on your behalf.

Step 4 –Let Summit ask your credit providers about debt rescheduling

If you can only afford a partial payment on your credit agreements due to lockdown, contact your credit providers to find out about debt rescheduling options during lockdown. This may include temporary instalment reductions or payment breaks. Keep in mind: When an account is rescheduled, interest and fees will continue to run as per normal, which means that your debt will continue to grow. For this reason, continue making payments to your debt wherever possible we will ask your credit providers to consider an interest rate reduction where possible.