01 Dec The Cost of Debt Review in South Africa
If you have had debt issues, you have likely already heard of debt review. But do you understand the process enough to apply for debt relief with confidence? At Limdebt, we value transparency and clearly break down all the costs involved with Debt Review, so that you know exactly what to expect. Let us consider how it works and what it can do for you. The cost of debt review in South Africa is well worth the many benefits it provides. Here are 10 warning signs you need debt counselling.
What Does Debt Review Cost?
The upfront fees for debt review are kept affordable, and simply exist to cover your application (R50) and the associated administration fees (R300). Both upfront payments only need to be made once, at the start of the process. Debt review can help you escape reckless loans – if you request this check, it will cost you R1,500, and may be added to your first month’s debt review repayment.
The next cost to be aware of is your debt restructuring fee, which is equal to your first full month’s repayment amount. This is capped at R8,000 for single applicants and R9,000 for joint applicants. Once you are undergoing debt review, your creditors are aware that they will only receive payments after the second month. This is because, in the first few months, your funds go towards all the costs we have covered so far.
After care fees are paid monthly from month 3 of debt review, continuing for as long as you remain under debt review. From the third month onward, you’ll also pay a small monthly fee to the payment distribution agency that manages your transactions – about 2-3% of your monthly repayment. Legal fees vary and are usually paid in the second month of debt review. Limdebt will discuss this fee with you based on your case.
Debt Review with Limdebt
You must have a clear idea of what is coming your way when you enter debt review. The process is designed to help you overcome your debt, and all the costs involved are regulated by the National Credit Act (NCA). Furthermore, all our Limdebt debt counsellors are registered with the National Credit Regulator (NCR), meaning you’re working with professionals who have your back.
Debt review is a legal way to cut your debt repayments fast. Don’t let your financial problems rule your life and affect your relationships. There is a way out of debt, and it doesn’t have to cause you additional stress. The cost of debt review in South Africa is low, and the benefits can make a big difference in your life. Debt review can safeguard your assets and peace of mind, which gives you back quality of life.
Ready to get started? CONTACT US to take the first steps towards a debt-free life.