How It Works

Find Out How DebtCo Group Works

Step 1

Firstly, your Debt Consultant will need as much information as possible regarding your income and expense budget, as well as your personal information. If you can provide your consultant with a pay slip, bank statement, ID document and information on outstanding accounts (outstanding debt) it will make the process a lot easier and faster.

Your consultant will work with you to develop a reasonable “living expense” budget, (i.e. food, school fees, transport costs, etc.) see how much is available for distribution (debt payments) as well as determine if you are over-indebted. This reduced amount is referred to as your Reduced Instalment amount.

Step 2

Once you have submitted your signed application, it can take between 3-5 working days for your application to be processed and for you to be registered with the NCR, notifying all creditors and credit bureaus of your application.

Step 3

Our office will be in contact with you to supply you with an NCR number, which means that you are officially under Debt Counselling and none of your current credit providers are allowed to take any judgement or legal action against you (this includes blacklisting you), provided that no legal action has commenced prior to your application on any of the accounts listed.

Step 4

As your Debt Counsellor will inform all credit providers and credit bureaus that you are under Debt Counselling, you will not be able to incur any new debts or further credit on existing credit agreements while under this program. This is NOT a blacklisting, but rather a precaution. In many cases, this could also mean a reduction in fees and interest payable by the consumer.

Step 5

Once your matter has been granted by the Magistrate of the Court, a copy of your court order will be sent to both you and your various creditors. This process can take approximately 60 – 90 working days from date of application.

Step 6

Once you have paid your first two instalments, the Payment Distribution Agency (PDA) will distribute the monies from your third payment onwards to your credit providers. The amount distributed to your credit providers may alter during the negotiation process.

Step 7

You are responsible for ensuring that this payment is made every month, in order to avoid any legal action from credit providers(provided that no legal action has commenced prior to your Debt Review application).

Step 8

Ensure that you understand the costs involved. There is no upfront joining fee, however the following costs will apply:

The first reduced instalment amount payable is for admin, and will go to the Debt Counsellor for providing you with this service.

The second payment will be for all legal fees and costs involved for attorneys going to court.

NOTE: During the first 2 months, when the above payments are made, you are not liable to pay the debtors too, as the debtors are paid from month 3 onwards; but none of your current credit providers are allowed to take any judgement or blacklist you, provided that no legal action commenced prior to your Debt Review application.


How debt review works, step by step

Debt review (debt counselling) is a formal process under the National Credit Act that helps over-indebted South Africans reduce their monthly repayments to an affordable level while protecting them from legal action. Here is exactly how it works with Debtco Group, a registered debt counsellor (NCRDC 3277) operating since 2010.

  1. Free assessment. We review your income, expenses and what you owe, and confirm whether you are over-indebted and whether debt review is the right option for you.
  2. We restructure your debt. If you qualify, we work out a realistic, reduced monthly repayment and negotiate lower instalments and interest with each of your credit providers.
  3. Court confirmation. Your restructured plan is made an order of the court, which gives it legal standing.
  4. One affordable payment. You pay a single monthly amount to a registered Payment Distribution Agent, which pays each of your creditors on your behalf.
  5. Clearance certificate. Once your debts (excluding a home loan, which runs its normal term) are settled, you receive a clearance certificate and your credit profile is updated so you can rebuild.

What debt review protects you from

For as long as you keep up your agreed monthly payment, the credit providers included in your debt review cannot take legal action against you or repossess the assets linked to those accounts. Protecting your home and car is one of the main reasons South Africans choose debt review. It also stops the calls and letters, because your creditors deal with us instead of you.

What debt review does not do

It is important to be honest about the process. Debt review does not cancel or write off your debt, it does not remove accurate information from your credit record, and no debt counsellor can guarantee a specific outcome. While you are under debt review you also cannot take on new credit, that restriction is part of how the process helps you recover.

What does debt review cost?

Debt counselling fees in South Africa are set and capped by the National Credit Regulator, so they are the same no matter which registered debt counsellor you use. We explain every fee to you upfront during your free assessment, before you commit to anything.

How long does debt review take?

It depends on how much you owe and how much you can afford to repay each month. Many people complete the process within three to five years, and paying in a little extra whenever you can shortens the term. We will give you a realistic timeline during your assessment.

Frequently asked questions

Will debt review blacklist me?
No. Debt review is a rehabilitation process, not a blacklisting. You are flagged as under debt review until you complete the process and receive your clearance certificate, after which that flag is removed.

Can I keep my house and car?
In most cases, yes, as long as you keep to the agreed repayment plan, the assets included in your review are protected.

How do I start?
Call us on 021 007 1422 or request a free assessment online. There is no obligation and your details stay confidential.

Ready to take back control of your debt?

Debtco Group has helped South Africans reduce their monthly repayments and protect what matters since 2010. Speak to a registered debt counsellor today on 021 007 1422 or request your free, no-obligation debt assessment.