How do payments work when I’m under debt review?

Single Monthly Payment to a PDA

When you’re under debt review, all your debt payments are simplified into a single, affordable monthly payment made to a Payment Distribution Agency (PDA).

Personalised Repayment Plan

The first step involves your debt counsellor creating a personalised repayment plan tailored to your specific financial situation. They will assess your income, essential expenses, and total debt to ensure the repayment plan is manageable and affordable.

Reduced Instalments and Extended Period

This repayment plan usually involves reduced monthly instalments and an extended repayment period, making your debts easier to handle over time. Once you and your debt counsellor agree on this plan, it will be submitted to your creditors for their approval. How do debt counsellors reduce my repayments?

Distribution of Payments by the PDA

After your creditors accept the repayment terms, your payments will go directly to the PDA each month. The PDA is responsible for distributing these payments fairly among your creditors according to the agreed terms. Your monthly payment typically includes a small fee charged by the PDA for managing and distributing your payments to creditors.

Importance of Timely Payments

It is crucial that you consistently make your payments on time and in full to the PDA. Missing or delaying payments could result in creditors resuming collection efforts, potentially jeopardising the protection provided by debt review.


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