One of the most common questions about debt review is "how much does it cost?" The good news: all debt review fees in South Africa are regulated by the NCR (National Credit Regulator) and are transparent. There are no hidden costs, and no upfront payments are required.
The Short Answer
You pay nothing upfront. All debt review fees are included in your new, reduced monthly payment. You actually pay less each month than you were paying before, even with the fees included.
Breakdown of Debt Review Fees
The NCR sets maximum fees that debt counsellors may charge. These are reviewed periodically. Here is the current fee structure:
| Fee Type | Amount | When Paid |
|---|---|---|
| Application fee | R50 (once-off) | Included in first payment |
| Restructuring fee | Up to R8,000 (once-off) | Spread over first months |
| After-care fee | 5% of monthly instalment (max R450/month) | Monthly, ongoing |
| Legal/court fees | Varies (typically R1,000 – R3,000) | Spread over payments |
| PDA fee | R27.50 per account per month | Monthly, ongoing |
Understanding Each Fee
Application Fee (R50)
This is a once-off fee charged when you formally apply for debt review. It covers the administrative cost of processing your application and is the only fee that technically needs to be paid before the process begins — but most debt counsellors include it in your first restructured payment.
Restructuring Fee (Up to R8,000)
This is the main fee for the debt counsellor's work — assessing your finances, negotiating with all your creditors, creating the restructured repayment plan, and handling the court application. The maximum amount is set by the NCR and is spread over several months, so you never feel the impact in a single payment.
After-Care Fee (5% of Instalment, Max R450/month)
Once your debt review plan is in place, your debt counsellor continues to manage your case — handling creditor queries, monitoring payments, issuing annual reviews, and managing any changes to your circumstances. This ongoing service is covered by the after-care fee, capped at R450 per month.
Legal and Court Fees
Your restructured repayment plan must be approved by a magistrate through a consent order. The legal costs for preparing and filing this court application vary but are typically between R1,000 and R3,000. Like all other fees, these are included in your monthly payment.
PDA Fee (R27.50 per Account per Month)
The Payment Distribution Agency (PDA) is the independent body that receives your single monthly payment and distributes it to all your creditors. The PDA charges a small fee per account per month for this service.
Real-World Example
Before debt review:
- Total monthly debt repayments: R12,000
- 5 credit accounts
- Average interest rate: 22%
After debt review:
- New monthly payment: R6,500 (including all fees)
- Average interest rate: 5-8%
- Monthly saving: R5,500
Even with all debt review fees included, this consumer saves R5,500 per month — money that stays in their pocket for groceries, transport, and living expenses.
What About "Free" Debt Review?
Be cautious of anyone advertising "free" debt review. While the assessment and initial consultation should be free, the debt review process itself has regulated fees. If a company claims to offer debt review with no fees at all, they may not be legitimate. Always verify that your debt counsellor is registered with the NCR.
The Cost of NOT Going Under Debt Review
While understanding costs is important, consider what happens if you don't get help:
- Interest keeps compounding: At 20%+ interest, your debt grows rapidly
- Legal action: Creditors can obtain court judgments against you, leading to garnishee orders on your salary
- Asset repossession: Your car, furniture, and even your home can be repossessed
- Blacklisting: Defaults and judgments remain on your credit record for years
- Emotional toll: Debt stress affects your sleep, relationships, health, and work performance
Frequently Asked Questions
Do I need to pay anything upfront for debt review?
No. There are no upfront costs for debt review. All fees are regulated by the NCR and are incorporated into your restructured monthly payment. You do not pay any money before the process begins.
Are debt review fees negotiable?
No. Debt review fees are set by the NCR through legislation (the National Credit Act fee structure guidelines). All registered debt counsellors charge the same regulated fees. Any debt counsellor who charges more than the regulated amount is acting unlawfully.
Will I pay more in total because of the extended repayment period?
While the repayment period is extended, the significantly reduced interest rates mean you often pay less in total interest. The key benefit is that your monthly payment becomes affordable, preventing default, legal action, and asset repossession — all of which would cost you far more.
