The Debt Review Process

Find Out How DebtCo Group Works

Step 1

For us to assess your affordability, we first need to understand your finances in detail. This includes your monthly income, everything you pay back in debt in a month, and a comprehensive breakdown of your monthly budget that lists all your necessary living expenses. This affordability assessment serves to determine whether you qualify for debt review, and also helps us to see what you can reasonably afford when we restructure your debts as part of debt review.

Note: If you are struggling to afford your debt repayments and living expenses each month, it’s a key sign you need debt review, and will qualify for debt review.

Step 2

Once we move ahead with the Debt Review process, you need to submit an application which takes 3 to 5 business days to be processed. All your creditors will be notified, and you will also be registered with the National Credit Regulator (NCR).

Step 3

You will receive a National Credit Regulator number and be officially undergoing debt review. During this time, none of your creditors may contact you regarding your debts. You’re protected from becoming blacklisted and you are safe from legal action associated with your current debts, except if you’re facing existing litigation.

Step 4

One of our debt counsellors will inform all credit bureaus and credit providers that you’re under debt review. While undergoing debt review, you are not permitted to incur new debts. You won’t be able to apply for loans or finance. Debt review is successful because it gives you the chance to focus fully on repaying and overcoming your debts.

Step 5

A copy of your court order is sent to you and your various creditors once your debt review is approved by the Magistrate of the Court. From the date of application, the process should take between 60 to 90 business days.

Step 6

A credible Payment Distribution Agency (PDA) will be handling all payments from you to your creditors while you undergo debt review. After you have paid off your first two instalments, the PDA will distribute payments to your credit providers from the third payment onwards.

Note: During the negotiation phase that is overseen by a debt counsellor on our team, the amount that is distributed to your creditors might vary.

Step 7

Even though the PDA ensures that your creditors are paid, it is your responsibility to honour your monthly payment, based on the new debt repayment amount you agreed to.

Step 8

It is also your responsibility to understand the debt review fee structure. If you are unsure of anything, you can check in with one of our Debtco Group team members for assistance and more information. Your first monthly instalment based on the newly restructured payment plan will go to the debt counsellor who works with you from our team. Your second instalment covers all your legal fees for debt review, as well as the cost of attorneys needing to attend court.

When these first two instalments are made, you won’t need to worry about paying your debt, which is only done from thethird monthly instalment onwards. Even from the first month, however, you are protected from legal actions by your creditors.

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<h2>Stop Struggling</h2>
and take the first step to financial freedom

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