Your first 6 Months Under Debt Review

Starting debt review can feel overwhelming, but knowing what to expect during your first 6 months can help ease your mind. It helps to approach your journey through debt review with an open mind and a positive outlook – after all, you’re working towards a more stable financial future. Being prepared for what lies ahead not only helps you stay motivated but also ensures that you understand how the process protects you and sets you on the right path.

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Months 1 – 3: Get Set Up & Protected

Understand the initial assessments and fee structure that takes place at the start of the debt review process. In the first three months, your debt counsellor will assess your financial situation in detail and set up a repayment plan that aligns with your affordability. This period typically includes:

• Debt Counsellor Fees (usually covered in the first month)
• Legal Fees (for court orders to formalise your new repayment plan)
• Payment Distribution Agency (PDA) Fees

These fees are included in your new monthly repayment amount. Depending on the agreed repayment amount, these setup costs can either be covered in the first month or spread out over the first 3 months. When it comes to the protection debt review offers, you will be protected from legal action and asset repossession once your debt counsellor applies to the court for a restructuring order.

Keep in mind that you should not refer to creditor statements to keep track of your debt progress. These will still reflect that you are in arrears. The statements you receive from your PDA will accurately display updated information on your new repayment amounts, interest rates, and payment period.

Months 4–6: Momentum and Monitoring

From month 4, most of the initial setup fees will have been settled. You will start to see real progress from this point onwards, as your payments are going directly towards repaying your debts. Stay focused on maintaining your repayments and communicate with our team if you’re struggling with anything or need guidance. During these months, you can expect:

• Consistent payments toward your restructured debt plan
• Updated PDA statements that reflect decreasing balances
• Financial relief as budgeting becomes easier with your new repayment plan
• Continued legal protection as long as you stick to the repayment schedule

Debt counselling provides hope for those in need and can make a difference in your quality of life. See for yourself – make use of our debt saving calculator to get an idea of what the process could mean for you.