Debt advice and the fee structure for debt advice 2020.
Debt Counseling, or Debt Review, is a legal process designed to help indebted South Africans regain control of their finances by restructuring their debts according to a legally approved plan.
This professional service is offered to over-indebted consumers. It is a process governed by the new national credit law that provides you, the consumer, with better protection from creditors threatened with legal action.
Consumers struggling to meet their monthly debt obligations can seek debt advice. These consumers should have distributable income that is used to offer reduced payments to their lenders. Consumers who are married in a community of property must jointly apply for debt advice.
Benefits of debt counseling.
- All of your debt repayments are combined into a reduced monthly repayment schedule.
- Your assets, including your home and car, are protected from redemption.
- You will no longer receive calls from your creditors asking for payment.
- There are no permanent records of any debt counseling.
- There is only one monthly repayment to be made.
- Your budget will first meet your basic needs before paying off any debts.
- You will never pay more money than you can reasonably afford.
- A debt counselor suggests ways to cut costs and save money.
- Gives you peace of mind that your debts will be paid off.
- Help you live comfortably with all living expenses covered.
- Help meet your debt settlement goal.
- It will help you change your financial spending behavior.
- You don’t pay any money in advance.
Debt counseling process.
Fill out our free online debt assessment form.
- It’s free and only takes a few minutes.
- Complete our online debt assessment and let us know the details of your financial situation.
- Submit all necessary documents for the initial assessment. (i.e. your ID, payroll, bank statements, request letters, etc.).
We will evaluate and determine.
- A registered debt advisor will determine if your monthly expenses and debts exceed your monthly income.
- A new monthly budget is drawn up that covers all basic needs.
You will be placed under debt counseling or debt review.
- We will notify all of your loan providers and the credit reporting agencies that you are under Debt Review.
You only pay one discounted payment that you can afford!
- We will restructure your payment plan and negotiate with your loan providers.
- This new restructured payment is paid for through a registered payment distribution agency.
The application is prepared and finalized in court.
- Our attorneys will petition the court for your restructured payment plan to be brought to court.
- You must sign and submit an affidavit.
During debt counseling, you are protected from legal action by your loan provider and only have to pay one per month, affordable reduced payment so that you have enough cash for your monthly expenses
Fee structure for debt counseling 2020
- Fee structure for debt counseling 2020
One of the most frequently asked questions we receive every day is debt counseling fees.
Debt counseling is a formal legal process governed by the National Credit Act. Your monthly debt settlement amount will depend on your situation and how much you owe in total on your debt. Debt counselors are allowed to collect certain fees from the NCR, including:
This is a flat fee to cover the debt advisor’s cost of processing the completed Debt Review Application.
Regulated costs – R50
Payment in advance and in full.
The debt review administration fee is a regulated, one-time, flat fee charged by the debt advisor. This fee is used to manage the following processes:
- Consultation with the consumer. The consultation is the explanation of the debt review process and an explanation of the regulated fees.
- Notifications to lenders letting them know that the consumer has requested a debt review. Also known as the Form 17.1 process
- Collection of consumer data in the NCR Debt Help system
- Attention to any refusals to review debt (17.2 Refusal), including
- Notification of consumer and lender as well as rejection
- Updated the NCR Debt Help System
- Compliance with regulation 25. Regulation 25 of the National Credit Act: If a debt counselor determines that a consumer is not over-indebted and makes a determination in Section 86 (7) letter A, the debt adviser must provide the consumer with a letter of rejection
Regulated costs – R300
Payment in advance and in full.
Restructuring fee for debt advice.
Debt counseling fees are based on the results of a full assessment of consumers’ financial information, and the following processes include:
- Preparation of offers for inspection by lenders
- Restructure Consumer Debt on the Debt Advisor PDA Profile
- Negotiating with creditor providers, including
- Cut down on reduced rates
- Negotiate reduced interest rates
- Reduce or change insurance
- Send the final proposals to the lenders and the consumer
- Drafting, filing and submitting debtor documents to lawyers for drafting court applications.
- Updated the NCR Debt Help System
- Take care of all transfer requests from consumers
- Instruct the attorney to prepare court applications
- Filling out NCT applications for approval orders
- Supervision of the withdrawal request from consumers (17th W process)
costs – The restructuring fee corresponds to the distributable amount of a maximum of R8000 for a single applicant and R9000 for consumers who are married in a community of property
In other words, the first restructured installment is paid to the debt counselor. The above limit values apply
Payment due: This first payment is transferred to the debt counselor for services rendered.
Reckless lending Fee.
A debt counselor handles reckless credit ratings and investigations, and provides attorneys with reckless credit documents to help prepare scoring affidavits
Debt counselors will track your progress in debt counseling and take care of the following while you undergo a debt audit.
- Form 17.2
- Review of the financial situation of consumers
- Answer all payment requests
- Take part in the approval process, which includes securing paid letters
- Take part in the 17th W process. (Withdrawal from debt advice by the consumer)
- Participated in the update of the NCR debt support system
Costs: 5% of the distributable amount or an amount not exceeding R450 per month.
Aftercare fees will never exceed R450. If the amount exceeds R450pm, check the amount with the debt counselor and the NCR.
Payment due monthly is deducted from the restructuring of the debt check.
National Consumer Tribunal filing fee.
A debt counselor will submit your application for debt counseling to the NCT to obtain informed consent.
costs R500 one time and this excludes the NCT fill fee. Currently the NCT application fee is.
corresponds to your monthly debt clearing amount for your legal petition with the Magistrate Court.