It is important to know exactly what the process will costs you.
Debt Counselling South Africa does not charge any upfront fees. We do not charge for providing information or a quotation. We are willing to help you find out more at no charge.
If you decide that you do seriously want to get out of debt and make use of the debt review process to do so then we will provide you with a detailed quotation before we begin work.
Standard Fees for the Debt Counselling Process
Application Fees (we do not charge this fee)
An application fee R50.00 upfront (many Debt Counsellors don’t actually charge this)
If working on your budget is enough to get you out of your debt issues then there is only a 300.00 fee also known as a Budget Rework fee or rejection fee (This fee is well worth it if the Debt Counsellor can help you rearrange your budget in such a way that you can cover all your costs each month)
Debt Restructuring Fee (Once off)
Once proposals are made to your credit providers and a lot of administrative work is done you will make your new monthly repayment towards your debts. This amount may be big or small depending on what you can actually realistically afford. The amount you pay towards your debts from now on is directly linked to what fees you pay next.For example, if you pay R1500 towards your debts each month then the Debt Restructuring fee will be only R1500. If you pay R2500 then the fee will be R2500 etc.There are caps or limits on these fees so that you never pay too much. For example, Debt Counsellors will never charge a single person more than R8000 in debt restructuring fees even if they can realistically pay R10 000 a month towards their debt. A couple will never pay more than R9000 even if they can afford to pay R20 000 or R30 000 or more towards their debts each month. This ensures fees are kept down and are fair. Consumers will never pay these fees over and above what they pay towards their debt each month. This is a once-off fee and is very reasonable
Reckless Lending (If applicable)
Investigating possible reckless lending take a lot of time and effort. There is only a small fee (Maximum of R1500) that is ever charged for this service. Debt Counsellors may waive this fee or charge less than this amount if they wish.
After Care Fee (monthly retainer)
As consumers pay off their debt each month via debt review a small portion of the monthly payment is allocated to the Debt Counsellor as an after care fee. This small amount will never be more than R450 and is 5% of the monthly repayment. If you are paying R1000 a month towards your debt this means the fee will be R50. If you are paying R3000 a month towards your debt then the fee will be R150.
Legal Fees (to the Attorneys)
Since Debt Review goes to court there will also be some legal fees. These can be as little as R500 + submission fees to the NCT if all the creditors like the proposals sent or the fees can be more if they fight the proposal because they feel you are really not paying them enough. Either way, these legal fees usually come out of your second month’s debt repayment (not over and above your monthly repayment amount). All credit providers know this and they do not object. A portion of that payment will be set aside for a professional Attorney to represent you at court. This will be discussed in detail with you once the proposals have been sent to the credit providers and it becomes clear if they will easily accept or if the Attorney will have to represent you to ask the court to force them to accept the offer
What Would You Pay?
Want to know exactly what you would pay each month based on your unique debt situation?