By Willem Nel – Registered Debt Counsellor (NCRDC1593)
For many South Africans, arrears do not start with recklessness or poor money management. They often begin quietly — a missed payment here, a reduced income there, an unexpected expense that forces a difficult choice. At first, it feels manageable. You tell yourself you will “catch up next month”.
But month by month, arrears grow. And the longer they are ignored, the more expensive — financially, emotionally, and legally — they become.
As a registered debt counsellor, I have seen first-hand how quickly arrears can spiral out of control, not because people did nothing, but because they waited too long to ask for help.
What Are Arrears, Really?
Arrears occur when you fall behind on contractual payments such as:
- Home loans and bonds
- Vehicle finance
- Credit cards and store cards
- Personal loans and overdrafts
Once an account falls into arrears, interest continues to accumulate, penalty fees are added, and your credit profile begins to deteriorate. Importantly, arrears are not static — they grow even when your income does not.
The Real Cost of Ignoring Arrears
Many consumers believe that avoiding calls, emails, or statements buys them time. In reality, it does the opposite.
Here is what ignoring arrears actually costs you:
- Escalating Interest and Fees
Missed payments trigger higher interest, late payment fees, and collection costs. What started as a single missed instalment can quickly turn into several months’ worth of debt. - Damage to Your Credit Record
Arrears are reported to credit bureaus. This affects your ability to refinance, negotiate better terms, or access affordable credit in the future — even after your financial situation improves. - Loss of Negotiating Power
Credit providers are far more flexible when a consumer engages early. Once an account is severely delinquent or handed over, options narrow significantly. - Legal Action and Asset Risk
Ignored arrears often lead to summonses, judgments, emolument attachment orders, or repossession of assets such as vehicles and homes. Legal processes add further costs that you ultimately carry.
Why Asking for Help Early Changes Everything
There is a critical difference between financial difficulty and financial failure. Difficulty can be managed. Failure usually comes from silence and delay.
When consumers seek help early, several advantages emerge:
- Payments can be restructured before arrears become unmanageable
- Legal action can often be avoided entirely
- Stress and uncertainty are reduced
- A long-term plan is created instead of short-term survival decisions
Debt counselling, in particular, is designed to intervene before matters reach a breaking point.
Debt Counselling Is Not a Last Resort
One of the most damaging myths in personal finance is that debt counselling is only for people who have “failed”. In truth, it is a regulated legal process created to protect consumers who are over-indebted but still willing to meet their obligations in a sustainable way.
Under the National Credit Act, debt counselling can:
- Reduce monthly instalments to affordable levels
- Protect consumers from legal action while under review
- Ensure fair treatment from credit providers
- Provide a structured path back to financial stability
As a registered debt counsellor (NCRDC1593), my role is not to judge, but to assess, guide, and negotiate in the best interests of the consumer — within the law.
The Emotional Cost of Doing Nothing
Beyond the numbers, ignoring arrears takes a heavy emotional toll. Anxiety, strained family relationships, sleepless nights, and constant fear of phone calls or legal letters become part of daily life.
Seeking help does not mean admitting defeat. It means choosing control over chaos.
A Simple Truth
Arrears do not disappear on their own. They grow quietly while life continues loudly. The earlier you face them, the more options you have — and the less they cost you in the long run.
If you are behind on payments, struggling to keep up, or simply unsure of your options, speaking to a registered professional sooner rather than later can make all the difference.
Asking for help is not the expensive choice.
Ignoring arrears is.