Long answer:
Debt-counselling fees are structured, disclosed upfront, and usually paid from your consolidated instalment (not as cash to the counsellor). Typical components include an application/administration fee, a once-off restructuring fee, after-care (monthly) fee, legal/court or NCT costs, and a Payment Distribution Agent (PDA) charge. The intent is simple: you make one affordable payment, and regulated parties are paid from that amount—safely, predictably, and with a paper trail.
Why there are fees (and why they’re structured this way)
Debt counselling is more than a phone call to creditors. Your counsellor has to:
Assess your affordability and confirm over-indebtedness
Notify all credit providers and credit bureaux (Form 17.1)
Propose a compliant rearrangement plan and negotiate terms
Obtain a binding court/NCT order so everyone follows the same rules
Administer your case monthly and resolve queries until completion
Issue your Clearance Certificate (Form 19) at the end and update bureaux
Those steps require specialist work by a counsellor and legal team. The fee structure is designed so you avoid big cash outlays, while work and accountability are properly funded.
The fee components
1) Application/administration fee (once-off)
Covers opening your file, capturing your credit profile, and preparing the assessment. Usually included in month 1 distributions (not paid to a personal bank account).
2) Restructuring fee (once-off)
This is the heavy lift—budget design, creditor proposals, negotiation follow-ups, and preparing the court/NCT pack. It’s typically settled from your first consolidated instalment(s) via the PDA.
3) After-care / monthly fee
A modest monthly amount for case management—creditor queries, payment confirmations, variation requests if your income changes, compliance reporting, and statements.
4) Legal / court or National Consumer Tribunal (NCT) costs
Covers your attorney/advocate and filing/setting-down the matter. Good practices quote these clearly and try to keep them predictable (often phased to avoid a shock).
5) Payment Distribution Agent (PDA) fee
A small fee to the independent, regulated entity that collects your single debit and pays each creditor per the order. This is your audit trail—you’ll see distributions on your monthly statement.
6) Clearance / completion admin
At the finish line, your debt counsellor issues Debt Review Clearance Certificate (Form 19) and notifies credit bureaus to remove the “under debt review” flag. Any admin here should be transparent and reasonable.
Key protection: Your one monthly payment goes to the PDA. From there, fees and creditors are paid according to the confirmed plan, no risky EFTs to a counsellor’s personal account.
What you actually pay month-by-month (how it flows)
Month 1: Your consolidated instalment is collected by the PDA. Setup-related items (application/restructuring/legal portions) are settled from within that instalment.
Month 2 onward: Your single instalment mainly goes to creditors per the court/NCT order, plus after-care and PDA fees.
Ongoing: You receive a PDA statement showing exactly who got paid and how much.
Completion: Your counsellor reconciles balances, gathers paid-up letters, and issues Form 19. Bureaux remove the debt-review flag (verify on your reports).
Debt review fees which are payable by you as the consumer, are tightly regulated by the National Credit Regulator. Fees are payable in month 1 or within the first 30 days from the date of your application.
The current NCR-set fees are as follows, but keep in mind that the NCR can change these over time:
- A once-off application fee of R50 excl. VAT.
- A once-off administration fee of R300 excl. VAT.
- A once-off restructuring fee of one hundred per cent (100%) of your first instalment of the debt re-arrangement plan, up to a maximum of R8000 excl. VAT for single applications and R9000 excl. VAT for joint applications, e.g. when you and your spouse are married in Community of Property (CoP).
- A monthly after-care fee of 5% excl. VAT of the monthly rehabilitation amount (up to a maximum of R450).
- A monthly transactional payment distribution fee as per NCR Guidelines, to a maximum of R15 (incl. VAT) per debt obligation, paid to the Payment Distribution Agency (PDA). In our case, the PDA is Hyphen Technologies (Pty) Ltd.
Although debt counselling fees are standard across the debt counselling industry, legal fees vary from one debt counsellor to the next. Debt Sage’s legal fees are the lowest in the industry. The fees vary per client as they are charged on a client-attorney basis based on several factors which include: the monthly contribution amount that you have to pay, and acceptances from your credit providers on the proposed restructured accounts. Thereafter we then apply to get a consent order at the National Consumer Tribunal (NCT) or a court order from the Magistrate Courts.
Your debt review application will be referred to either the National Consumer Tribunal (NCT) or Magistrate's Court to obtain a court order, officially placing you under debt review. Debt Sage cannot be held accountable for the NCT's or Magistrate’s ruling and the final decision is that of the NCT or Magistrate.
When one or more credit providers have not accepted the repayment plan, the debt review application is referred to a Magistrates Court to obtain a consent order. The consumer is then liable for a legal fee which is payable to the attorney. This is payable in Month 2 and may be deducted from your monthly payment to the PDA.
If the debt review application is referred to the NCT to obtain a consent order, you will pay the same legal fees as determined above for submission, which includes the filing fee, printing, transportation, and stationery costs. This is payable after all credit providers have accepted the repayment plan, in Month 2, to Debt Sage and may be deducted from your monthly payment to the PDA.
How to compare fee quotes (so you’re not fooled by “low fee” marketing)
Use this quick checklist when evaluating providers:
One-page fee schedule: All items listed clearly and in writing.
No upfront cash to a counsellor: Your single payment must flow via a PDA—not to a private account.
Legal line item explained: Who is the attorney? What’s the expected amount and timing?
After-care value: What service do you get each month (response time, statement cadence, variation support)?
Court/NCT route: Do they prefer Magistrates’ Court or NCT for uncontested matters, and why? (Faster confirmation is better.)
Finish-line plan: How they handle Form 19 and bureau updates; typical timelines; who escalates if a bureau delays removal.
If a quote is “cheap” but vague, expect headaches later (slow filings, poor creditor engagement, weak case management).
Example: what a fair fee journey feels like
You agree one affordable instalment, say on the 28th of each month. The PDA collects it, legal and restructuring items are covered from within your first instalment(s), then distributions stabilise. Your counsellor replies promptly to emails/WhatsApps, your PDA statement arrives monthly, and the court/NCT order lands early in the process. At the end, you get your Form 19 and the flag is removed—clean and compliant.
FAQs (money & value)
Are fees negotiable?
Providers should explain fees and can structure timing to fit your cashflow. Be wary of heavy discounts that later reappear as “extras.”
Can fees be added if my income drops?
The after-care fee continues while your file is active; if life changes, ask for a variation rather than slipping behind.
Do I pay for the Clearance Certificate?
The admin to issue Form 19 and file bureau updates should be clearly included in your fee schedule. Ask to see it in writing.
Is VAT included?
If the practice is VAT-registered, the schedule should state whether amounts are VAT-inclusive.
What happens if I withdraw early?
If you attempt to leave before confirmation or completion, you may still owe for work already performed. However, remember: once a court/NCT order exists, the lawful exit is Form 19 on eligibility.
Red flags to avoid
“Pay us directly and we’ll sort the rest.” (No—payments go through the PDA.)
“Instant removal of debt review” or “cancel in 48 hours.” (After an order, exit is via Form 19 only.)
No legal details or “we’ll see later.” (Court/NCT costs and the representative must be transparent.)
No monthly statements or difficulty getting receipts. (You should receive regular PDA statements.)
Conclusion
Want a transparent, written fee schedule? Send your last 3 bank statements and a list of accounts. We’ll map one affordable instalment, itemise every fee in writing, and show your timeline to a court/NCT order, and ultimately your Form 19.