What accounts in arrears mean and how to recover

Missing payments, making late payments, or not making the full required monthly repayment on your loan can cause financial difficulties further down the road.

If you do find yourself in this type of situation, it’s essential to reach out to your loan provider as soon as possible and explore a debt relief option that is best for you.

When are your accounts considered to be in arrears?

When you do not make your monthly loan repayments, or do not make your payment on time, your account will be considered as being in arrears.

If you’re behind on your repayments it could have a negative impact on your credit score. Not being able to pay your debts on time will affect your ability to apply for other credit in the future.

If you’re interested, you can also learn more about credit scores and how credit scores work.

What is re-spread of arrears and how does it work?

If you’re not able to make one full payment to catch up on the amount you’re behind on, you can apply for a re-spread of arrears.

A re-spread of arrears allows you to spread the amount you couldn’t pay previously over the remaining term (or duration) of your loan agreement.

Doing this means that your monthly loan repayments will be higher, but it also means that you’ll not be considered as being in arrears or behind on your payments. The duration of your loan term won’t be extended either.

With a re-spread of your arrears, your credit score will also not be affected. You'll need to make your new monthly loan repayments to ensure you don’t go into arrears again. If your monthly repayments are too high, you can also consider a re-spread of arrears with a term extension and reduce your monthly repayment.

If you feel a re-spread of arrears is not the right fit for you, you can also learn more about other debt-relief options available, including payment holidays, debt consolidation, and term extensions.

As a Standard Bank customer, you can apply for debt relief online. You can choose the relief options you’re interested in for your loan products, and a representative will get in touch to discuss the best options available for your current financial situation.

Apply for debt relief online

_{Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).}

_{Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.}