Debt counsellors are one of the most affordable debt remedies available to consumers who find themselves over-indebted. Compared to late fees, added interest and the losses associated with bankruptcy or sequestration, the fees that debt counsellors in Johannesburg attach are minimal.
There is a R50 vat application fee that is prescribed by The National Credit Act and there is a fee structure that is recommended by the Debt Counsellors Association of South Africa that will be discussed below.
First of all the structure recommends that should a Johannesburg debt counsellor see the need to help a consumer with debt counselling, there is a restructuring fee that cannot exceed R3000, however if debt counselling is not needed a rejection fee R300 can be charged. This makes sense as the debt counsellor would still have to take time out of their schedule to evaluate the consumer’s finances.
However this amount of money may not be available immediately and therefore provisions can be made for an initial payment and an arrangement to settle the outstanding amount one the consumer has completed their debt counsellor’s recommended course.
There are monthly fees attached to debt counsellors in Johannesburg, and these will never exceed 5% of the sum paid to creditors. This 5% is the aftercare fee, and ensures that debt counsellors in Johannesburg will be on hand to advise the consumer throughout the debt counselling process.
Should there be any legal fees; debt counsellors should disclose them before taking any legal action on the behalf of the consumer.
It is clear to see that debt counsellors in Johannesburg are not at all expensive, and are flexible in meeting the financial demands of their clients. Surely a minimal expense trumps asset loss or tarnishing your financial record?
Article written by: Andrea van Tonder 04-2013