WHAT DOES IT COST?

At the time of going to print the prescribed fees were being revised and updated details will be available from the NCR but the guidelines proposed* are: A R50 one-off application fee. A R250 one-off administration fee (this is new). The other proposed fees are aligned to the outcomes of the full assessment of the individual’s financial information: A R200 rejection fee if your application fails for legal reasons – for example if you don’t have an income or aren’t really overindebted. A one-off restructuring fee – it could be equal to the distributable amount (the payment to the payment distribution agency), capped at R6 500 for a single applicant and at R7 000 for more than one applicant. An aftercare fee of 5% of the monthly distributable amount to the payment agency, capped at R450 for the first 12 months. This can be adjusted down to 3% and capped at R450 for the duration of the plan. Debt counsellors usually have agreements with lawyers for legal fees. Fees differ depending on the discount the counsellor negotiates. A one-off R500 National Consumer Tribunal submission fee at the end of the process. Important If a debt counsellor fails to submit your repayment plan to your creditors within 60 days of your application for counselling or hasn’t referred your case to a tribunal or magistrate, the counsellor must pay back your restructuring fee. But if you decide to withdraw from the process you’ll still have to pay part of the fee. *Correct at the time of going to print.