Debt Counselling Fees in South Africa

Why fees matter

Debt counselling is not free advice with no administration behind it. It involves assessment, proposals, communication with credit providers and ongoing monitoring. Fees should be disclosed clearly before you commit.

Costs you may encounter

• Application or assessment-related fees.
• Restructuring and proposal-related fees.
• Legal costs linked to the required process.
• Ongoing aftercare or administration fees where applicable.
• Payment distribution costs where a payment distribution agency is used.

Ask for written disclosure

Before signing, ask what each fee covers, when it is deducted, whether it is once-off or ongoing, and what happens if your application does not proceed.

Fees versus cash-flow relief

A lower monthly payment can be helpful, but it must be compared with fees, repayment term and total cost. Do not judge a plan only by the first month's instalment.

Fee red flags

• Pressure to pay before the process is explained.
• No written fee schedule.
• Requests for unusual payment channels.
• Promises that fees guarantee acceptance or debt cancellation.