Important Tools For Debt Review


Debt Counselling Guidance is a consensual modified pay back schedule, which works as a debts help procedure for consumer.

!Western Cape (I-Newswire) December 16, 2013 - Debt Counselling or a good repayment plan largely rely on the concessions of the credit providers under codes of conduct to be effective currently, while the National Credit Act plays catch-up to an industry that is heading past the first milestones. As debt counsellors with Pay Plan Solutions, one often tries to express repayment plans in various ways to firstly show clients what the plan can do for them, or what it will achieve. So it is very important to be able to calculate the effect interest and fees have on an account. To use a practical example, if one uses a typical consolidation loan of R50 000 which is stretched over a 5 year period at the maximum allowed interest rate, it is not unimaginable that you could end up paying back more than R120 000 over the life of the loan.

Credit providers sometimes indicate this as the contract sum, as opposed to the current settlement amount which should not include future interest. So the old common law in duplum rule seems to have found a home in Section 103(5) of the National Credit Act, and the Supreme Court of Appeal has upheld this. It creates an opportunity and a tool for Debt Counsellors that can be used when codes of conduct can't be applied. Especially for high interest accounts and accounts where legal action has commenced, one can often make use of Section 103(5) of the act to get the consumer out of debt.

Section 103(5) of the NCA states that despite any common law or credit agreement to the contrary, any interest which accrues while the debtor is in default may not in aggregate exceed the unpaid balance of the principal debt. The biggest problem with repayment plans that have been negotiated with debt collectors in the past are that in some instances they never seem to end. It is the National Credit Act which has for the first time in the industry attempted to regulate penalties and protect consumers from paying off fees and interest for the rest of their lives. What is clearly evident is that if a debt counsellor does need to make use of Section 103(5) at any point to bring one of their client's accounts to conclusion, it will often have less of a negative impact than consolidating one's debt might have. For free assessments or a second opinion one can contact their National Helpline on 0861 626859 or their offices directly on the Cape Town number, 021 554 0708
visit us : http://payplansolutions.co.za






About Pay Plan Solutions

Debt Counselling can consolidate your debt into one easy payment and clear your credit record. For    More..a free assessment, contact us todayLess..

Contact Information

Pay Plan Solutions
Eugene Cilliers
3 Cutter Close,
Blouberg Sands, Capetown
7441
Phone : 021 554 0708

Published in:

Business > Finance

Published On:

December 16, 2013

Print Release:

Print Release

If you have questions regarding information in this press release contact the company listed above. I-Newswire.com is a press release service and not the author of this press release.The information that is on or available through this site is for informational purposes only and speaks only as of the particular date or dates of that information. As some companies and PR Agencies submit their press releases once per week,month or quarter, make sure to check the official company website for accurate release dates as our site displays the I-Newswire.com press release distribution date only.We do not guarantee the accuracy or completeness of information on or available through this site, and we are not responsible for or omissions in that information or for actions taken in reliance on that information.


Related Releases

Las Vegas Home Being Sold By the Ballen Group
The Las Vegas real estate team, known as The Ballen Group, have entered into discussions with a buyer for a Las Vegas home located on Cherokee Avenue.

The Ballen Group's Team Of Las Vegas Real Estate Agents Are Selling A Las Vegas Home On Bow Creek Court.
The Ballen Group of Keller Williams Realty Las Vegas is selling a home in Summerlin, Las Vegas. The group's Las Vegas real estate agents are thrilled to be a part of selling this single family home.

EzCheckPrinting And Virtual Printer Software Updated For QB With No Price Increase
New EzCheckPrinting and virtual printer software from Halfpricesoft.com has new compatibility with Quickbooks 2014 and Windows 8.1 customers without a price increase from last years cost. Get the details by visiting www.halfpricesoft.com.

1000 Premium Business Cards Only $25
MBK Media Group offers an unbeatable deal of 1000 Business Cards, Full Color Front and Back, for only $25

The Ballen Group's Las Vegas Short Sale Currently Pending
The Las Vegas real estate team, known as the Ballen Group, is in the process of selling another home in Las Vegas. The Ballen Group's Las Vegas real estate agents are happy to be finishing another short sale.