What does debt counselling in Gauteng cost?
Debt counselling remains the cheapest form of debt relief, short of winning the lottery. However, although minimal and restricted for the consumer’s benefit, there are costs associated:
- A non-refundable application fee of R50 starts debt counselling process.
- A R300 fee is charged for rejection of the application, as prescribed by section 86(7)(a) of the National Credit Act.
- On approval a restructuring fee, not exceeding R3000, will apply.
- Once repayment proposals have been accepted by creditors and the process has begun, there is an after-care fee of 5%, not exceeding R300 per month. After 24 months, it will be reduced to 3%.