Handing over indebtedness
The spiraling effect of this is that people find themselves growing more into debt each year and thereby jeopardizing their lifestyle and decreasing their quality of life. The recent National Credit Act has made huge changes in the manner in which credit may now be given as well as the procedures that have to be complied with prior to debt collection . However this Act is only applicable to Credit agreements that commenced after June 2006. People who find themselves in financial difficulties and who are unable to keep up to their financial obligations, need to be aware that provision is made for them to renegotiate their payment plan to prevent legal action. This is done in conjunction with a debt counselor or with the relevant Creditor directly.
Often and previously, debtors used to be burdened with unnecessary cost and interest amounts, over and above the actual capital payment due.
To read the full article, click here..
To read the ePaper, visit: http://epaper.newcastleexpress.co.za
Labels: Credit agreements, debit, debit collection, debtors, income, interest, National Credit Act, payment
