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. Debt Solutions 4U is VAT-registered; our fees are quoted exclusive of VAT. The prescribed Payment Distribution Agency (PDA) fees below are inclusive of VAT.
| Fee Type | Amount | When Paid |
|---|---|---|
| Application fee | R50 once-off (NCR-prescribed) | Included in first payment |
| Administration fee | R300 per application (excl VAT) | Once-off, with your application |
| Restructuring fee | Lesser of your 1st instalment or R8,000 (single) / R9,000 (joint COP) — excl VAT | Deducted from first payment |
| Reckless-lending assessment fee | R1,500 per application, only where a reckless-lending assessment is done (excl VAT) | Month 2, after the written assessment outcome |
| After-care fee | 5% of monthly instalment, max R450/month (excl VAT) | Monthly, ongoing |
| PDA fee (Hyphen PDA) | Per payment distributed: R5 (R100–R200), R10 (R201–R500), R15 (over R500); R3 per extra statement — incl VAT | Monthly, ongoing |
| Attorney / court fees | Separate — agreed with the attorney upfront and confirmed to you in writing | As agreed |
Understanding Each Fee
Application Fee (R50, once-off)
This is the NCR-prescribed once-off application fee charged when you formally apply for debt review. It is included in your first restructured payment, so there is nothing to pay before the process begins.
Administration Fee (R300 per application, excl VAT)
This once-off fee is charged per debt-counselling application. It covers your initial consultation, the explanation and disclosure of the process, and the associated administration of getting your application underway.
Restructuring Fee
This is the main fee for the debt counsellor's work — assessing your finances, negotiating with all your creditors and creating the restructured repayment plan. The restructuring fee is the lesser of your first restructured monthly instalment or R8,000 for a single application (R9,000 for a joint application in community of property), excluding VAT. For example, if your restructured instalment is R4,500 per month, the restructuring fee is R4,500 — not R8,000. This fee is deducted from your first payment through the PDA. It is a restructuring fee, not a legal fee — attorney and court costs are separate (see below).
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, which is 5% of your monthly instalment, capped at a maximum of R450 per month (excluding VAT).
Reckless-Lending Assessment Fee (R1,500, when it applies)
This fee is conditional — it does not apply to every client. It is charged (R1,500 per application, excluding VAT) only where a reckless-lending assessment is actually undertaken, and it covers the assessment itself and the preparation of the supporting documents for the attorney. When it applies, it is payable in Month 2, after the written assessment outcome is completed. You can read more about reckless lending and your rights under the National Credit Act.
Still weighing it up?
Debt review is a legal process, not a product, so the thing worth checking first is whether the counsellor is registered with the NCR — anyone who is not cannot lawfully take you through it. After that it comes down to what your restructured payment would actually be and how long it would run, and neither of those is a guess: both come out of your own numbers in about fifteen minutes on a call, with no obligation either way.
Attorney and Court Fees (separate)
Your restructured repayment plan must be approved by a magistrate through a consent order. The attorney and court costs for that application are separate from the restructuring fee above. They are agreed with the attorney upfront and confirmed to you in writing before the work is done — they are not a fixed debt counsellor fee, and the R8,000 / R9,000 figure is the restructuring cap, not a legal-fee cap.
PDA Fee (Hyphen PDA — prescribed, incl VAT)
The Payment Distribution Agency (PDA) is the independent body that receives your single monthly payment and distributes it to all your creditors. We use Hyphen PDA (NCR-registered, NCRPDA01). The PDA fee is prescribed and charged per payment it distributes, not as a flat monthly amount:
- R5 for a payment between R100 and R200
- R10 for a payment between R201 and R500
- R15 for a payment over R500
- R3 for an additional monthly statement you request
These prescribed PDA amounts include VAT.
Struggling With Debt?
Find out if you qualify for debt review in 60 seconds. Free, confidential, no obligation.
Start Free Chat AssessmentReal-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.
