NUHOME Posted October 10, 2008 Report Share Posted October 10, 2008 Hi guysI would love hear your views on 'paying off SA debt while in OZ'With trying to make a living here in Perth, it is difficult paying off debt in SA ( cars / home / credit card.....) So what could happen if they are not paid??? Would having PR make a difference??Nuhome Quote Link to comment Share on other sites More sharing options...
Heymanse Posted October 10, 2008 Report Share Posted October 10, 2008 We have PR. Have 2 vehicles that we've been trying to sell in Pta since June when we arrived in Sydney. So far, no luck. More than R6 000 p.m. eating up my meager savings each and every month is really not funny. Also thinking that I should phone the financing company and tell them to take the cars back but what exactly happens when they do that? What other alternative do we have? Any ideas?? Quote Link to comment Share on other sites More sharing options...
SpitFire Posted October 10, 2008 Report Share Posted October 10, 2008 I'm a bad bad apple.Also after trying to sell my Renault Megane for a few months after arriving, I gave it back to the finance company. So I got bad credit back in SA.. Quote Link to comment Share on other sites More sharing options...
Heymanse Posted October 10, 2008 Report Share Posted October 10, 2008 Hi Spitfire,Exactly how does it work when they take your vehicle back? Do they sell it (by auction?) and you're suppose to pay the outstanding balance owed on the car? What happens if you've got bad debt and return for holiday to SA? My husband's got this notion that they'll be waiting for you at the airport with handcuffs and everything!! Quote Link to comment Share on other sites More sharing options...
CapeTownToolNut Posted October 10, 2008 Report Share Posted October 10, 2008 I'm a bad bad apple.Also after trying to sell my Renault Megane for a few months after arriving, I gave it back to the finance company. So I got bad credit back in SA.. I've got a scrooge suggestion for all the "Joneses" out there.Be like me, tone down, just buy a scooter or an unhijackable car like my trusty,rusty 1984 golf (that I bought second hand nogal), and have lovingly kept for 15 years.You would have saved 15 years of exhorbitant re-payments !.....enough to buy another house CASH. Quote Link to comment Share on other sites More sharing options...
SpitFire Posted October 10, 2008 Report Share Posted October 10, 2008 Hey,I owed half of the book value of the car, and couldn't get it sold, as Renault lost a lot of face value, since they themselves don't even buy back their old models.I haven't been back to see if there will be anyone waiting with hand cuffs, and I doubt there would be! Quote Link to comment Share on other sites More sharing options...
Heymanse Posted October 10, 2008 Report Share Posted October 10, 2008 OK, say that we do the same, give the cars back to the financing company, they sell it but we still owe on the vehicles afterwards. We don't pay it, we get blacklisted in SA, if that's possible when you're on PR in Oz, are you blacklisted for life or what? Sorry for all the questions, I'm just weighing my options and trying to find a way out of the mess we seem to find ourselves in. Quote Link to comment Share on other sites More sharing options...
da_feemail Posted October 10, 2008 Report Share Posted October 10, 2008 The only two things they will wait with cuffs and police is if you committed a murder in RSA or if you have outstanding maintenance to be paid or big fraud committed., thousands of rands If you are blacklisted in RSA it does not influence you in Aus.As long as they don't have your address in Aus, they can't do much and I think even if they have you address, the RSA courts does not have any jurisdiction in Aus.I would personally let them know, sorry, I can't pay anymore, take the cars back and forget about it.With what is going on in the world financial markets, I would follow this route.Just my 5c, I''m not saying do it, I just say what I would do.Carelene Quote Link to comment Share on other sites More sharing options...
Maggel Posted October 10, 2008 Report Share Posted October 10, 2008 Hi,Just remember that if a lot of immigrates do the same thing, we will ALL get a bad name, and will make it a lot more difficult in the future for other immigrants. If you do give the vehicle back to the bank, you are responsible for the remaining amount after they sold it. If you are strapped for cash at the moment, when everything is sorted, offer them R50 or R20 a month, saying that is what you can afford. You will pay that for the rest of your life, or pay the rest when you are in a better financial position. This way, you will not get a bad credit rating, no one will follow you for the rest of your life, and immigrants do not get a bad rap for leaving their responsibilities.They do not have a choice to accept it if you make them an offer, it shows that you are willing to do something about your situation.OR you can just leave it and never worry about it again. Quote Link to comment Share on other sites More sharing options...
NUHOME Posted October 10, 2008 Author Report Share Posted October 10, 2008 Thanx for the replies and questions (Heymanse). I did actually 'hand in' my vehicle. Wesbank auctioned it for less than half it's market value and so I now owe them R100 000 !!!!!!!!!!!!!!!!!!!!! I told them that all i could pay was a R1000 a month.....which i have not as yet started to do So if all that happens is that I get BLACKLISTED in SA - well then so be it!!!!IF I can eventually pay a small amount every month...I will..BUT my first priority is to see to my family in a foreign country that we just immigrated to!!!Hope everything works out for you as well HEYMANSE Quote Link to comment Share on other sites More sharing options...
Joefromsa Posted October 10, 2008 Report Share Posted October 10, 2008 Nuhome,Firstly, there is no way the SA banks have any jurisdictions in OZ... Secondly, you have a moral and a legal obligation to settle or repay any outstanding debt, whether you are in SA or Oz...On the otherhand, many people are in the same boat as you... SA banks have absolutely no mercy towards defaulters... they are a bunch of evil hunters. In your case, the banks could have made a better effort.. to fetch a higher amont thereby reducing your debt to them... you are purely a number.They (the banks) have made provision for this loss.. my suggestion would be to get intouch with some sort of a debt councillor and request that your interest bill be zeroed... otherwise you pay for three lifetimes and you will make yourself miserable... your priority is to ensure that you are, ok in OZ... ensure that you have adequate capital for you and your family or have the ability to save... a reasonable amount... R1000.00 pm is too high... stuff them... pay R250.00pm and get an interest discount... Continously negotiate with them to write off the balance or 50% of the debt... they are getting a tax writeoff for it anyway...DO NOT GIVE THEM YOUR PHYSICAL ADDRESS UNDER ANY CIRCUMSTANCES... correspond via email. get an email address without an .au extension... e.g. gmail address.I do not trust banks or any financial institution...Hope you come right...Joefromsa Quote Link to comment Share on other sites More sharing options...
lucinda1985 Posted October 10, 2008 Report Share Posted October 10, 2008 Hello. I work for laywers. 3years ago we had a case where a guy immigrated somewhere can't remember. Lets say the owes the bank R500k, but sold the property R300k. I asked what is happening with the other R200k. The Bank is writing it off. Because they don't have jurisdiction (spelling??) in that specific country. So the guy is getting free. Ok he won't be able to buy property agin in SA, but does he really care? he is not going back to Sa. So? First it goes to the Sheriff and if they can't track you then they get tracing agents (looking for you in SA) and then u get a judgment against your name. Quote Link to comment Share on other sites More sharing options...
Brissy Bessies Posted October 14, 2008 Report Share Posted October 14, 2008 Lucinda 1985 your story is making my brain tick right now!!! We've just had a our house valued in South Africa (had non-paying tenants in it for 3 months) and the agent has come back saying that we will not be able to sell it for the amount we paid for it (we only bought in the beginning of last year)! We've been liaising with the bank who will be "helpin us" by halving the bond for 3 months while we settle here and find new tenants but after that the instalments will be increased and so will the settlement value!! Helping my a.s! So now I'm thinking to tell the agent to just sell it for whatever she gets it for and then we can finally be rid of this stress (cos let me tell you debt is a stressful little bugger!!).BUT we're on 457's and we probably will want to go to SA again oneday to see family for a holiday!Anybody got some advise? Quote Link to comment Share on other sites More sharing options...
SpitFire Posted October 14, 2008 Report Share Posted October 14, 2008 I've spoken to sooooo many South Africans in the same position. You've committed yourself to debt in South Africa, and in your current situation you can't afford to pay it off!Most of them are worried sick about going back to SA as they are worried they might be 'kept back' when they want to return to their new country. I think it would be great if we could find out what the legal obligations and consequences are, or even get a forum representative 'debt councillor' for people in this situation. Quote Link to comment Share on other sites More sharing options...
Bob Posted October 14, 2008 Report Share Posted October 14, 2008 What's more relevant to owning debt in South Africa, is how does it affect any credit rating in Australia?Do the Australian financial institutions write off to South Africa asking for your credit worthiness?If so, how will the Australians react to hearing from South Africa that you owe bucket loads of cash over there?Are Australian banks going to extend the same bucket load of cash to you in Australia, to buy your first house, buy a car, etc.? . . . . . . . just wondering Quote Link to comment Share on other sites More sharing options...
SpitFire Posted October 14, 2008 Report Share Posted October 14, 2008 I doubt that they reference your debt back in SA. they just wait for you to generate a credit track record here. Things like mobile phone and internet contracts, foxtel etc. They're all seen as credit commitments and your behaviour around paying them will determine youre credit-ability. That's what I think at least. Sheesh, I got 2 credit cards here, and bad debt in SA due to my car, so I doubt they referenced it in SA. Quote Link to comment Share on other sites More sharing options...
Kitten Posted October 14, 2008 Report Share Posted October 14, 2008 I must agree with Maggel. A couple of people do this and the next thing you know we all have a bad reputation. I'm quite shocked really at the number of people that are saying don't pay it! At some point you may need a reference for something back home and it will catch up with you. I would also like to be able to visit my family in SA without feeling like I have to look over my shoulder all the time. Better to pay even just a little at a time and have a clear conscience. We have debt here in the UK and will live frugally for the first year to pay it off as much as we can. It is going to be a tough year, but at least I can sleep at night. It's the same as stealing in my eyes, not paying money that you owe. Quote Link to comment Share on other sites More sharing options...
Kapoen Posted October 14, 2008 Report Share Posted October 14, 2008 (edited) My 2c I am hoping to fly away debt free, fortunately our cars are paid and only the Mortgage remains. However my sister went to NZ in Feb. of 2007. She couldn't sell her car and "gave it back" to the bank. They sold it for the outstanding amount but charged her about 4 months worth of installments because they did not put in auction immediatly!!!She refuses to pay for that and consequently has a bad credit history in SA. She came back to SA in November last year for my dad's funeral and had no problems whatsoever anywhere. Bells did not cling and alarms and lights go off somewhere in someones office to alert authorities that she owes money in SA.(or if they did the person watching them was propably on t-break!! )People emigrating to Oz have a bad name anyway, and I don't think a couple of deafaulters are going to make the difference, like someone said previously, the banks have built in systems to cover these losses. AND most of the debt would be interest and such seeing as we pay such high interest on anything. But still if you morally object to not paying that ,work out a plan to repay Edited October 14, 2008 by Kapoen Quote Link to comment Share on other sites More sharing options...
Heymanse Posted October 14, 2008 Report Share Posted October 14, 2008 After reading all you guys' comments and some heavy thinking we've decided to give the cars back to the bank, hoping that it will sell at least near the amount that we still owe on them. I've stopped my monthly debit orders with immediate effect. If we, after the sale of the vehicles, still owe the financing company a couple thousand of Rands, we might pay them off, LITTLE BY LITTLE, again, if we can afford to at that time. It is easy to say, pay the bank even if it is little, but if you simply struggle to get through week by week here and barely have money to put food on the table here, why then should I pay for something in SA that won't have any effect on my credit rating here in Oz? Is it not more important to look after my family first and foremost and then worry about something as unimportant (my opinion) as a car or 2 that the bank could not sell what it was actually worth?I've never been someone to shy away from my responsibilities, but I reiterate, my family is my most important responsibility at this point in time.Please do not chastise me for my opinion, it is aferall, my opinion (my 2 cents worth). Quote Link to comment Share on other sites More sharing options...
SpitFire Posted October 14, 2008 Report Share Posted October 14, 2008 Hey man,If that's the best you can do, that's the best you can do. Situations in ones life take a turns and twists, and one needs to find ways of dealing with it. Very few people are privilidged enough to leave the country debt free. I think as long as you're committed to do the right thing even if in the long run, then you're all right! Quote Link to comment Share on other sites More sharing options...
Bob Posted October 15, 2008 Report Share Posted October 15, 2008 I'm so glad that Australia's culture allows us to "down size" our lifestyle.I get the impression that in South Africa everyone aspires to driving the latest Beemer or Merc.This sort of aspiration only adds to debt being incurred and booked up, with the disadvantage that you owe $$$$ all the time.The secret to living the "Good Life" is to save . . . not to incur overdue debt.You can be a blue collar worker all your life, like me, and still have substantial savings later on life IF you save. For years, here in Australia, I'd drive an old 1984 Suzuki van to work. It did 440 000 kms on the clock by the time my last day at work arrived in May 2006. Since then, I've been living the good life off my investments and savings.I save in the form of shares, especially, which give a good return if you get the right stocks, but you can also save in money in the bank if you like, although you'll never be a millionaire that way.So . . . . all you folks that think you have to drive the flashest rig in town . . . . . it's keeping a helluva lot of you guys stoney broke, by the sounds of it! Quote Link to comment Share on other sites More sharing options...
Navigator Posted October 15, 2008 Report Share Posted October 15, 2008 I think you've hit the nail partly on the head Bob. A lot of the debt incurred in South Africa is due to the attitude of keeping up with the Jones'. On the other hand, the economical situation in South Africa is also partly to blame - I almost couldn't get my house sold before coming over, and one of my friends is struggling to get both of his properties sold, and if it carries on much longer he will be unable to afford the payments - as the rental market is also not too great in South Africa. Quote Link to comment Share on other sites More sharing options...
Brissy Bessies Posted October 15, 2008 Report Share Posted October 15, 2008 Who can afford to buy a car and house cash in South Africa - it's not like you can buy a jalopy for fear of it breaking down in a middle of an unsafe area!! To be fair we're talking houses and cars that aren't selling for what they were even bought for, not holidays and clothing accounts! Quote Link to comment Share on other sites More sharing options...
polly Posted October 15, 2008 Report Share Posted October 15, 2008 You need a decent car in SA for safety sake. You need something you can race away in when someone tries to force you off the road. You need something with decent protection when a taxi rams into you. You need something with tracking devices so if you get hijacked, hopefully someone will come rescue you. You need something with protected windows, so your window won't be smashed. Even old claptrap cars got hijacked. You need a decent car so the chances are less that you break down and get attacked and raped on a stretch of road.Most of us drove tremendous distances to work, because we had no choice. You need a newer car that doesn't guzzle fuel (like a 1984 van). Yes, some try to keep up with the Joneses, but most of us were doing the only thing we could. Quote Link to comment Share on other sites More sharing options...
SpitFire Posted October 15, 2008 Report Share Posted October 15, 2008 I agree Polly!Also with the exhange and cost of living a DECENT car in SA (Say in the R250 000) range could easily chew up 25% of your salary, where-as the same car here would cost you 10% of your salary at most Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.