SA Homeowners Defaulting on Home Loan Debt During World Cup

June 18 - World Cup fever is sweeping the land, and nobody can help but get caught up in the excitement.

However, South African consumers are warned not to forget that real life needs to carry on and they should remember their responsibilities.

The Managing Director of Debt Busters, Luke Hirst said: "South African consumers need to stay diligent during this exciting time and make sure that once all the festivities are over, they can afford their monthly debt obligations."

But with many South Africans not wanting to miss the once-in-a-lifetime opportunity to watch a World Cup match played out in their home country, cash earmarked for household expenses, including mortgage payments, may find its way to buy match tickets instead.

As a result, banks are expected to see a rise in the number of consumers who default on their home loan payments.

While consumers may expect banks to have a little leeway in these exceptional circumstances, experts warned that those who default could face serious consequences.

Those who have been placed under debt review should be especially diligent in paying their loans back, even at the price of losing out on a World Cup game.

"South Africans under debt review need to realize that they have been thrown a lifeline," said Hirst. "By agreeing to pay a reasonable amount each month, you can avoid repossession of assets and legal proceedings."

Even the National Credit Regulator has come out with a warning to consumers in South Africa to consider their spending habits during the World Cup and not to spend recklessly.

6/18/2010 9:21:57 AM