Why must debt review fees be paid to your debt counsellors?

As a formal process, debt counselling and its related costs are governed by the National Credit Act. With a monthly repayment amount specific to your situation and financial allowance, this is calculated by how much you owe and how much you can afford.

Debt counsellors are permitted to charge certain fees for services, which include:

Month 1

  • Restructure fee: equal to your rehabilitation payment, to a maximum of R6840 incl. VAT.
  • Application fee: A once off application fee is charged as per NCR guidelines, you may be charged for your credit check as well if you have already used your yearly free check.

Month 2

  • Rehab payment: this is the amount you have to pay back each month, your contribution towards your debt. This includes all money going to credit providers, your aftercare and PSA fees, based on your affordability assessment and budget.
  • Sundry fee: this is a once off fee equal to the amount of your rehab payment which gets paid towards administration services. This goes towards your court order application.
  • Creditors: if your rehab payment is more than the maximum sundry fee and other monthly fees, the balance will be paid to your creditors.

Month 3

  • Creditors: payment is distributed to your creditors to pay off your debt on a month to month basis.
  • Aftercare fee: 5.7% of your rehab payment is payable to NDA each month for support services.
  • PDA fee: 3% of your monthly rehab fee will be paid towards PDA services.