Although getting out of debt may seem costly to consumers who are currently over-indebted, it is important to highlight the fact that consumers need not worry about exorbitant costs when applying for debt counselling in Pretoria.
Firstly there is application fee that is limited by The National Credit and the debt counsellor may not exceed this amount, secondly if an application is rejected there is rejection fee of R300.
Only once the application has been approved do other costs begin to factor. There is a restructuring fee that is worked out as the lesser of the first instalment due under the re-negotiated debt payment plan. However this amount may not exceed R6000. However consumers need not fret as this amount is payable before debt payment commences again. And if a debt counsellor does not finalise all the paperwork within 60 working days, the amount is entirely refundable.
Once all systems are a go and debt repayment resumes, there is an after care-fee applicable. This fee is usually 5% of the instalment, but may not exceed R400 for the first 24 months. After this period the fee is reduced to 3%.
If a consumers withdraws from debt counselling before it is finalised, a rejection fee of 75% is applicable.
The fee structure of debt counselling was designed with over-indebted consumers in mind and thus the fees are not sky-high, in fact they are incredibly affordable in comparison to other debt remedies.
Article written by: Andrea van Tonder 07-2013