How Much Do Debt Counsellors Charge for a Debt Review and Rescue? 

Are you falling behind with your payments and thinking of applying for a Debt Review? Then you might be wondering how your Debt Counsellor might charge you. The Cost of a Debt Review can Range from  R1500 for a basic case to R10000 + for more advanced cases.  

The General Costs for a Debt review will include the following:

  • An application fee for the Debt Review at a fixed cost of R50.
  • A once-off fixed administration fee of R300.
  • The Debt Restructuring Fee Ranging From R1000 to a Maximum of R10000 for married Couples with intricate cases.
  • A reckless-lending-investigation fee starts at R1000.00 per case.
  • Ongoing administration and aftercare fees equal to 5% of your monthly payment not exceeding R450

For an accurate estimate of how much a Debt Review might cost you contact Local Pros today to book your free Debt Consultation.

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Factors That Influence the Cost of a Debt Review or Debt Rescue Plan

  1. Debt amount: The more debt you have, the more work the Debt Counsellor needs to do to negotiate a repayment plan. This can increase the cost of the Debt Review.
  2. Complexity of the case: Some cases may be more complex than others, requiring additional time and effort from the Debt Counsellor. This can also increase the cost of the Debt Review.
  3. Duration of the Debt Review Process: The Debt Review process can take several months to complete, and the longer it takes, the more it can cost. This is because the Debt Counsellor will need to spend more time working on your case.
  4. Fees charged by the Debt Counsellor: Each Debt Counsellor sets their own fees for their services, and these can vary depending on the level of experience and expertise of the Debt Counsellor.
  5. Debt amount: The more debt you have, the more work the Debt Counsellor needs to do to negotiate a repayment plan. This can increase the cost of the Debt Review.
  6. Complexity of the case: Some cases may be more complex than others, requiring additional time and effort from the Debt Counsellor. This can also increase the cost of the Debt Review.
  7. Duration of the Debt Review process: The Debt Review process can take several months to complete, and the longer it takes, the more it can cost. This is because the Debt Counsellor will need to spend more time working on your case.
  8. Fees charged by the Debt Counsellor: Each Debt Counsellor sets their own fees for their services, and these can vary depending on the level of experience and expertise of the Debt Counsellor.
  9. Court application: In some cases, a court application may be required to enforce the repayment plan. This can increase the cost of the Debt Review.

Factors That Influence Debt Counselling Costs

  • Complexity of the case: The more complex your financial situation, the more time and effort a debt counsellor may need to invest in negotiating with creditors, designing a repayment plan, and providing ongoing support. This could result in higher fees.
  • Level of debt: The total amount of debt you owe can influence the cost of debt counselling. Higher levels of debt may require more extensive negotiations and a more detailed repayment plan, which can lead to increased fees.
  • Number of creditors: If you have multiple creditors, the debt counsellor may need to spend additional time negotiating with each of them to secure the best possible repayment terms. This can also impact the overall cost of the service.
  • Professional experience: The experience and expertise of the debt counsellor can play a role in determining the cost of their services. Highly experienced and reputable debt counsellors may charge higher fees for their in-depth knowledge and proven track record of success.
  • Geographic location: Debt counselling fees can vary depending on the region or city in which you live. In some areas, the cost of living and operating a business may be higher, resulting in increased fees for professional services such as debt counselling.
  • Additional services: Some debt counselling firms may offer additional services, such as financial education or budgeting assistance, which can add to the overall cost. However, these extra services may also provide added value and contribute to your long-term financial success.

Debt Review or Debt Rescue Plan Fee Structure

  • Application Fee and Administration Fee: A once-off fee charged at the beginning of the debt review process to cover the cost of assessing your financial situation and determining your eligibility for debt review. Total cost of R300 to R350.
  • Restructuring Fee: A fee charged for negotiating with your creditors, restructuring your debts, and creating a personalised repayment plan. This fee is usually a percentage of your total debt or a percentage of your monthly repayment amount. Average cost: 5% – 6% of your monthly repayment, with a cap at around R6,000.
  • Monthly Service Fee: A recurring fee charged each month for the ongoing management and administration of your debt review, including regular communication with your creditors and monitoring your progress. Average cost: R50 – R300 per month.
  • Legal Fee: If your case requires legal representation, such as the drafting of legal documents or court appearances, there may be additional fees associated with these services. These costs can vary depending on the complexity of the case and the specific legal services required. Average cost: R1,500 – R5,000, but can be higher in complex cases.
  • Payment Distribution Agency (PDA) Fee: A fee charged by the Payment Distribution Agency for processing and distributing your monthly payments to your creditors. This fee is typically a percentage of your monthly payment. Average cost: 2% – 3% of your monthly payment, with a cap at around R450.

It’s important to remember that these costs are approximate and can vary between cases please contact Local Pros for a Free Consultation with one of our partners. Our partners will give you a detailed quote before preceding with the Debt Review

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Debt Review or Debt Rescue Plan Pricing Table

STEPSERVICESAMOUNT(excl vat)PAYMENT DUE 
ApplicationCompletion and submission of Form 16R50.00 (Regulated)Upfront and in full
Administration Feea) Consultation with consumer including an explanation of process and fee disclosure
b) Form 17.1 process
c) Loading of consumers onto the DHS
d) Rejection process of form 17.2(a) including. notifying the consumer and credit providers II. updating the DHSIII. compliance with Regulation 		R300.00 per applicationPayable upfront and in full
Restructuring FeeAttending to the Form 17.2(b) process including, but not limited to, the following related services:
a) Proposal preparation;
b) Loading the plan on the debt counsellor’s PDA*** profile;
c) Negotiating with credit providers;
d) Submitting the final proposal;
e) Supplying debt counselling documents to the attorney to draft the court application;
f) Updating the DHS;
g) Transferring the consumer; h) Instructing the attorney to draft the court application/collating and filing NCT**** application; and i) Withdrawal by the consumer (Form17.W process)		For one applicant the fee is either equal to the distributable amount** or a maximum fee of R8 000.00 (whichever amount is the lesser).

For consumers married in Community of Property, the fee is either equal to the distributable amount or a maximum fee of R9 000.00 (whichever amount is the lesser).		Collected from restructured payment in Month 1 after drafting and submission of the proposals.
Reckless Lending Feea) Reckless lending assessment; and b) Supplying reckless lending documents to the attorney to draft the affidavit on the assessment outcome.R1 500.00 per debt counselling application. Collected from restructured payment in Month 2 after completing the written outcome of the reckless lending assessment.
Aftercare Feea) Form 17.2(c) process; b) Review of the consumer’s financial situation;
c) Attending to payment queries;
d) Clearance process, including securing the paid-up letters;
e) Withdrawal by the consumer (Form 17.W process); and
f) Updating the DHS.		For the entire debt counselling process the fee is equal to 5% of the distributable amount or a maximum fee of R450.00 (whichever amount is the lesser) Collected from restructured payment in every month after Month 2 in which aftercare services are rendered.
NCT Submission FeeSubmission of the NCT application.R500.00 (excluding the NCT filing fee which is R200.00).Collected from restructured payment in Month 2 after completion of the restructuring process.
Attorney Feea) Drafting of the court application
b) Attendance at court.		To be agreed upon upfront with the attorney and communicated in writing to the consumer when applying for debt counselling.Collected from restructured payment and distributed to the attorney only after:
a) one or more credit providers have not accepted the repayment plan;
b) the attorney has drafted the court application; and
c) the attorney has attended the hearing of the court application:

Why Choose a Local Pros Partner for Your Debt Review Needs

Navigating the complexities of debt can be a daunting experience. At Local Pros, our experienced partners offer personalised debt review solutions designed to provide you with the financial freedom you deserve.

  • Expertise: Our partners have extensive knowledge and experience in debt review, ensuring you receive the best advice and tailored solutions for your unique circumstances.
  • Personalised Service: Local Pros partners take the time to understand your financial situation and goals, providing customised debt review plans to suit your needs.
  • Local Knowledge: As local experts, our partners have an in-depth understanding of the financial landscape and creditor practices in your area, enabling them to negotiate effectively on your behalf.
  • Accredited Professionals: All Local Pros partners are registered with the National Credit Regulator (NCR), ensuring they adhere to the highest industry standards and ethical practices.
  • Ongoing Support: Our partners provide continuous support and guidance throughout the debt review process, helping you stay on track and achieve long-term financial stability.

Invest in your financial future by choosing a Local Pros partner for your debt review needs. With their expertise and personalised approach you can confidently take the first step towards a debt-free life. Don’t let debt control you any longer – contact Local Pros and book your Free Consultation today!

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FAQ Section: Debt Review Costs in South Africa

How much does it cost to apply for debt review?

The application fee for debt review in South Africa usually ranges from R300 to R500. This is a once-off fee paid at the beginning of the process to cover the assessment of your financial situation and determine your eligibility for debt review.

What are the costs involved in debt restructuring?

Debt restructuring fees generally range from 5% to 6% of your monthly repayment, with a cap at around R6,000. These fees cover the negotiation with your creditors, the restructuring of your debts, and the creation of a personalised repayment plan.

How much does it cost to maintain a debt review?

A monthly service fee is charged for the ongoing management and administration of your debt review. This fee typically ranges from R50 to R300 per month and includes regular communication with your creditors and monitoring your progress.

Are there any additional fees for legal services during debt review?

If your case requires legal representation, such as drafting legal documents or court appearances, additional fees may apply. Legal fees can vary depending on the complexity of the case and the specific legal services required. The average cost ranges from R1,500 to R5,000 but can be higher in complex cases.

What are the fees for Payment Distribution Agencies (PDAs)?

PDAs charge a fee for processing and distributing your monthly payments to your creditors. This fee is typically 2% to 3% of your monthly payment, with a cap of around R450.

Are debt counselling fees regulated in South Africa?

Yes, debt counselling fees are regulated by the National Credit Regulator (NCR) in South Africa. This ensures that fees are fair and reasonable and that debt counsellors adhere to the highest industry standards and ethical practices.

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