Debt Review Pricing
Is your debt crippling you? Are you thinking of applying for a debt review and would like to know how much it might cost? Basic cases start from about R2000, while more complicated cases can cost R10,000 or more. Let’s have a look at what the costs are that are involved.
The General Costs for a Debt review will include the following:
- Debt Review applicants are charged an application fee of R50.
- A once-off administration fee of R300 is also charged.
- Debt Restructuring fees are charged on a sliding scale ranging from R1000 to a maximum of R10000 for complex cases involving married couples.
- The investigation fee for reckless lending cases starts at R1000 per case.
- Ongoing administration and aftercare fees are charged at 5% of your monthly payment, with a cap of R450.
To obtain an accurate estimate of how much your Debt Review may cost, get in touch with Zap Debt today to schedule a free Debt Consultation.
Factors That Influence the Cost of a Debt Review or Debt Rescue Plan
- The cost of a Debt Review or Debt Rescue Plan can be influenced by the amount of debt a person has, as the Debt Counsellor will need to negotiate a repayment plan.
- The complexity of the case can also impact the cost of the Debt Review, as some cases require more time and effort from the Debt Counsellor.
- The length of the Debt Review process will also affect its cost, as a longer process requires more time and work from the Debt Counsellor.
- The fees charged by Debt Counsellors for their services can vary depending on their level of experience and expertise.
- In some cases, a court application may be necessary to enforce the repayment plan, which can further increase the cost of the Debt Review.
Factors That Influence Debt Counselling Costs
- The intricacy of your financial situation can result in higher fees for debt counselling services.
- The total amount of debt you owe can also impact the cost of debt counselling, with more debt leading to increased fees.
- Negotiating with multiple creditors may require more time, which can increase the overall cost of debt counselling.
- Debt counselling fees can vary based on the region or city you reside in, with higher living and business operation costs leading to increased fees.
- Additional services, such as financial education or budgeting assistance, may raise the cost of debt counselling but can offer added value and contribute to your financial success in the long run.
Debt Review or Debt Rescue Plan Fee Structure
- Application Fee and Administration Fee: A one-time charge assessed at the start of the debt review process to evaluate your financial condition and determine eligibility. Typically, the total cost ranges between R300 to R350.
- Restructuring Fee: A charge levied for renegotiating your debts, restructuring them, and developing a customised repayment plan. This fee is often a percentage of your total debt or monthly repayment amount, with an average cost of 5% to 6% of your monthly payment, capped at around R6,000.
- Monthly Service Fee: A recurring charge incurred every month for managing and administering your debt review, including regular communication with your creditors and progress monitoring. The typical cost ranges from R50 to R300 per month.
- Legal Fee: If legal representation is required, such as drafting legal documents or appearing in court, there may be additional fees associated with these services. The costs can vary based on the complexity of the case and specific legal services required, with an average cost of R1,500 to 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 disbursing your monthly payments to your creditors. This fee is generally a percentage of your monthly payment, with an average cost of 2% to 3% of your monthly payment, capped at around R450.
Keep in mind that the costs mentioned are estimates and may differ depending on individual cases. To get an accurate quote for your specific situation, it’s recommended to schedule a free consultation with one of our partners at ZapDebt. They will provide you with a detailed breakdown of costs before moving forward with the debt review process.
Debt Review or Debt Rescue Plan Pricing Table
| STEP | SERVICES | AMOUNT(excl vat) | PAYMENT DUE |
| Application | Completion and submission of Form 16 | R50.00 (Regulated) | Upfront and in full |
| Administration Fee | a) Consultation with consumer including an explanation of process and fee disclosureb) Form 17.1 processc) Loading of consumers onto the DHSd) Rejection process of form 17.2(a) includingI. notifying the consumer and credit providersII. updating the DHSIII. compliance with Regulation | R300.00 per application | Payable upfront and in full |
| Restructuring Fee | Attending to the Form 17.2(b) processincluding, 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; andi) 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 Fee | a) Reckless lending assessment; andb) 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 Fee | a) 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 consumer (Form 17.W process); andf) 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 every month after Month 2 in which aftercare services are rendered. |
| NCT Submission Fee | Submission 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 Fee | a) Drafting of the court applicationb) 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; andc) the attorney has attended the hearing of the court application: |
Why Choose a ZapDebt Partner for Your Debt Review Needs
Navigating the complexities of debt can be a daunting experience. At ZapDebt, our experienced partners offer personalised debt review solutions designed to provide you with the financial freedom you deserve.
- Expertise: Our partners have extensive expertise in debt review, offering the best advice and customised solutions for your unique circumstances.
- Personalised Service: ZapDebt partners provide a personalised debt review service, taking the time to understand your financial situation and goals, and creating tailored debt review plans to suit your needs.
- Local Knowledge: Our partners are experts in your local area, with a deep understanding of the financial landscape and creditor practices, enabling them to negotiate effectively on your behalf.
- Accredited Professionals: All ZapDebt partners are accredited by the National Credit Regulator (NCR), ensuring they comply with 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.
Choosing a ZapDebt partner for your debt review needs is the smart choice for your financial future. With their extensive knowledge and personalised approach, you can take the first step towards a debt-free life with confidence. Don’t let debt control you any longer. Get in touch with ZapDebt.
FAQ Section: Debt Review Costs in South Africa
How much does it cost to apply for debt review in South Africa?
The application fee typically ranges from R300 to R500, covering the initial assessment of your financial situation and eligibility determination.
What are the fees involved in debt restructuring in South Africa?
Debt restructuring fees vary from 5% to 6% of your monthly repayment, with a cap of around R8000 paid off over the period of the restructured debt agreement. The fees include debt negotiation, restructuring, and the creation of a customised repayment plan.
How much does it cost to maintain a debt review in South Africa?
A monthly service fee ranging from R50 to R300 is charged for managing and administering your debt review, including regular communication with creditors and progress monitoring.
Are there any additional legal fees for debt review in South Africa?
If legal representation is necessary, such as drafting legal documents or court appearances, additional fees may apply. Legal fees can vary, with an average cost ranging from R1,500 to R5,000, but can be higher in complex cases.
What are the fees for Payment Distribution Agencies (PDAs) in South Africa?
PDAs charge a fee for processing and distributing your monthly payments to creditors, 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 in South Africa are regulated by the National Credit Regulator (NCR) to ensure fairness, reasonableness, and adherence to industry standards and ethical practices.