What Happens If You Fall Behind on Rates:
1. Interest and Penalties:
Municipalities typically charge interest on overdue rates and may impose penalties. This increases your overall debts
2. Debt Collection Process:
The municipality may send demand letters or notices of arrears.
If you don’t respond, they may hand over the debt to attorneys or debt collectors, escalating costs.
3. Legal Action:
Municipalities can apply for a court judgment to recover the debt.
In extreme cases, they can attach your property and sell it to recover unpaid rates.
4. Restriction of Services:
Some municipalities may restrict access to services like electricity or water (if they supply these) until the arrears are settled.
What You Can Do:
1. Communicate with the Municipality:
Contact your local municipality as soon as you fall behind.
They may offer payment arrangements or reduced penalties.
2. Apply for a Payment Arrangement:
Most municipalities allow you to set up a plan to pay off arrears in installments.
Be honest about what you can afford to avoid defaulting again.
3. Check for Rebates or Assistance:
If you are a pensioner, low-income earner, or unemployed, you may qualify for rebates or subsidies.
Visit your local municipality's office to apply for these benefits.
4. Debt Review or Counselling:
If your rates are part of broader financial struggles, consult a debt counselor to consolidate debts and create a manageable repayment plan.
5. Sell or Rent Out Property:
If maintaining the property is unsustainable, consider selling or renting it out to cover the rates.
6. Legal Advice:
If legal action has already started, consult an attorney to understand your rights and options.
7. Avoid Ignoring Notices:
Ignoring the situation can lead to further costs and potential loss of property.
Being proactive and negotiating with the municipality early can help you avoid severe consequences.
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