Debt review in South Africa can be incredibly helpful for many people, but it does come at a cost. How much will you have to pay out? Let’s explore the costs associated with debt review and how they could affect your budget.
First, there are three main areas where most of the costs associated with debt review lie:
- The Debt Counsellor’s Fee – This fee is based on what you owe and usually ranges between R50-R200 per creditor listed on your application.
- A Court Application Fee – If needed, this fee covers your court appearance and legal costs which range from R250-R750 depending on the size of your case.
- Monthly Administration Fees – These fees cover administration expenses such as paperwork processing, monitoring accounts, and communicating with creditors; these fees typically range from R150-R400 or more per month depending on the complexity of your financial situation.
It’s important to remember that all fees must be paid upfront before any changes take effect so make sure to calculate them into your overall budgeting plan! Additionally, some debt counsellors may offer an installment payment plan if needed so don’t hesitate to ask about options like this when discussing potential solutions with them.
In terms of other hidden costs keep an eye out for things like additional communication charges from creditors or unexpected late payments penalties incurred during negotiations – although uncommon, these kinds of charges can catch you off guard if you’re not prepared for them ahead of time! Knowing what to expect financially before entering into a debt review agreement is essential for making sure everything goes smoothly and setting yourself up for success down the road.
