When facing financial strain and attempting to find a method of debt relief, consumers are faced with a myriad of options, each with their own pros and cons and processes. It’s important for consumers to understand exactly what they’re getting into when they sign up for debt relief such as debt restructuring in SA.
The stigma of being over-indebted can often lead consumers to conjuring up images of being faced with insurmountable costs and possible asset loss, but luckily, the National Credit Act has given consumers the chance to put these fears to rest as debt restructuring in SA is an entirely affordable method of debt relief that will not cost the consumer assets or mountains of money.
The application fee for debt restructuring in SA is only R50 – and a rejection fee of R300. These are non-refundable costs, but they are minimal and kept that way by the provisions in The National Credit Act.
Following the approval of the application, a restructuring fee is applicable and this fee will cover the administrative costs of the debt restructuring expert and, under guidelines of the DCASA code of conduct, it cannot exceed R3000. This fee is payable during the 60 working day period that all debt payment is halted whilst paperwork and negotiations are finalised.
Once payment on the negotiated debts resumes, the debt restructuring cost will encompass a 5% after-care fee for the first 24 months that the consumer is undergoing debt restructuring and thereafter, it will be reduced to 3% per month until all debts have been settled and the consumer is no longer undergoing debt restructuring.
There is a 75% forfeiture fee applicable if a consumer withdraws from the process. The above mentioned costs clearly illustrate that debt restructuring in SA is an affordable avenue for consumers who are over-indebted and in need of assistance with their debts.