When you are under debt review, you will make one affordable monthly payment to a Payment Distribution Agency (PDA). The PDA will distribute the funds to your creditors according to the negotiated repayment plan.
The debt counsellor will work with you to create a repayment plan that is affordable and manageable, taking into account your income and expenses. This plan will typically include reduced monthly payments and an extension of the repayment period, allowing you to pay off your debts over a longer period.
Once the repayment plan has been agreed upon, the debt counsellor will submit it to your creditors for approval. If your creditors agree to the proposed repayment plan, they will stop all debt collection efforts, including phone calls, letters, and legal action.
You will then make your monthly payments to the PDA, which will distribute the funds to your creditors according to the repayment plan. The PDA will take a small fee for their services, which is typically included in your monthly payment.
How do debt counsellors reduce my repayments?
It is important to note that it is essential to make your monthly payments on time and in full to the PDA. Failure to make payments could result in your creditors resuming their debt collection efforts, and you may lose the legal protection provided by the debt review process.
Overall, payments when you are under debt review are made to a Payment Distribution Agency (PDA), which distributes the funds to your creditors according to the negotiated repayment plan. It is essential to make your payments on time and in full to maintain the legal protection provided by the debt review process.
