Varying the credit contract

The law allows for a variation in a credit contract on the basis of hardship but the following circumstances must exist:

• your inability to make repayments must be due to unemployment or illness or some other reasonable cause;
• you expect that you will be able to make repayments if changes are made to the contract terms;
• the situation is only temporary and it should improve in the near future.

You should first contact the lender and try to come to some sort of written arrangement to vary the loan contract with them. This could involve reducing the repayments and extending the term of the loan or postponing repayments for a period of time or a combination of both.

If you are having difficulties coming to an arrangement with the lender you can get help from a financial counsellor.

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