Debt Counselling is a formal process, which is governed by the National Credit Act. Your monthly debt repayment amount is specific to your situation and how much you owe on your debt in total. Debt Counsellors are permitted by the NCR to charge certain fees which include:
- A once off Restructuring Fee of 100% of your debt rehabilitation amount up to a maximum as per the NCR’s guidelines.
- A once off Application Fee of R57.50 (incl. VAT).
- A once off Administration Fee of R345 (incl. VAT) for your application as per the NCR guidelines.
- A Sundry Fee equivalent to your monthly debt rehabilitation amount for your legal application to the NCT or Magistrate Court.
- A Reckless Lending Fee up to R1 725 (incl. VAT), which covers the cost of a reckless lending investigation done on the client’s account as regulated by the NCR.
- A monthly Aftercare Fee of 5.75% (incl. VAT) of your monthly debt rehabilitation amount for every month that you are under debt counselling.
- A monthly Transactional Payment Distribution Fee (PDA) as per the NCR.
Here is a simple breakdown of what you will need to pay and when: