Frequently Asked Questions #10:
– Your home and vehicle must be insured. This is often a condition of your financing contract. You must keep paying the full instalment for insurance and other policies, even while you are under Debt Counselling. The same applies to your rates and taxes as well as maintenance and services for your vehicle.
– If your insurance is linked to your home loan or vehicle finance, the bank will include the instalment and it will form part of the amount offered to the creditor. In other words your reduced instalment offered to the bank on your home loan or vehicle finance loan plus the full amount of your insurance = amount offered to the creditor.