Tuesday, December 8, 2015
South Africa grapples with worst drought in 30 years!
There are various reasons why consumers find themselves in a situation where there are unable to pay their debts. Most of the time, from our experience, the cause is due to circumstances outside of the consumer's control.
It is a well-known fact that our country is currently experiencing one of the worst droughts in the recent memory. The situation is aggravated by the fact that the previous two years were also stricken plagued by drought.
Farmers are especially vulnerable as creditors are expecting full payment within a year for production credit. The creditors also take extensive security over the assets of the consumer, in this case the farmer.
Luckily, farmers are not excluded from the advantages provided by the National Credit Act. They too can apply for debt review and restructure the production credit agreements to be repaid during a longer period.
They will then be put in a position to continue the farming enterprise as they will not lose their assets.