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.