The Debt Review Process

Find Out How DebtCo Group Works

Step 1

In order 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, this is a good indicator that you are over-indebted, 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 an NCR number and are now 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 actions that are associated with your current debts, in all instances other than those actions which are already in place from before you entered Debt Review.

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. This means no credit will be granted and no loans or accounts can be entered into or taken out. Debt Review is so 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, as well as your various creditors, once granted 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 what costs are involved in the Debt Review process. 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 that is working with you from our team. Your second instalment paid 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 the 3rd monthly instalment onwards. Even from the first month, however, you are protected from legal actions by your creditors.