Debt Counselling  fees

What does a debt Counsellor do?

  • He cannot magic away your debt, but will work out a long-term strategy to master it. Debt Counsellors work out budget plans and negotiate with creditors over payments.
  • They support you through the entire debt review and ensure that your credit record be restored. That’s what you need to know
  • the size of your debt burden doesn’t count, but you must earn a fixed salary to be eligible for debt counselling.
  • When under dent Counselling, you may not incur new loans.
  • You pay for it. The belonging is that you find your feet again financially.

REMEMBER credit agreements are legally binding. If your creditors accept repayment before the set, you need a consent order of a magistrate for amendments. If the creditors reject the proposed plan, the debt Counsellor shall submit to a magistrate for consideration.

What does it cost? The national credit regulator’s guidelines for debt counsellors ‘ remuneration are:

  • a one-time administration fee of R50 with your application a rejection fee of R300 (VAT excluded) If your application for legal reasons fail.
  • a one-time restructuring charge of no more than the first repayment of your debt plan, up to a maximum of R6 000 (excluding VAT) with a joint application may be the fee to R6 000 (VAT excluded) is increased.
  • a Aftercare fee of 5 percent (excluding VAT) of the monthly amount of the paying agency, up to a maximum of R400 for the first 24 months, and subsequently adjusted downwards to 3 per cent, up to a maximum of R400 (without VAT) for the duration of the plan. • If you withdraw an amount equal to 75 percent of the restructuring charge.
  • a Legal fee from R750 in the second month for the permission command. Debt counsellors usually have an agreements with lawyers for the legal fees.

 

Fees may vary depending on the discount that the counsellor negotiates. The debt Counsellor must give your pro forma invoice.

TIPS You short copies of your identity document, pay slip, bank statements, debt such as credit cards, mortgages, loans, store cards, car payments and overdraft facilities

Debt counselling in four steps

The debt Counsellor analyzes information about your money and arranges a consultation with you. It can engage in a branch or over the phone or e-mails. This is important because the Counselor must confirm your budget and existing debt must. You discuss his proposed budget plan to your monthly debt to settle so that you still can cover your basic living costs. The debt Counsellor explains all costs to you and you do officially apply for counselling.

The Counsellor will lay before the proposed repayment plan with your creditors. It will be recorded at the credit bureaus that you are under debt counselling. It remains so until you’ve settled your debt burden completely, after which it will be removed

The debt Counsellor gives you a final repayment plan and it is submitted by a payment agency.

You pay a lump sum monthly to the Agency, which then the different creditors and pay your debt Counsellor.