Debt counselling or debt relief is a legal process where your debt is consolidated into one manageable payment, and your debt counsellor negotiates better rates and instalments on your current debt. The debt counselling process protects you from your creditors. Learn more by completing the free call-back information form.

Call us immediately. We’re your Büddy and want to help you. We negotiate with creditors on your behalf and can help protect you.

A garnishee order is written permission issued by the courts that allows a creditor to claim their debts from your assets. It can be issued against your income or your home.

A moratorium is a legal relief that ensures your creditors can’t take any legal action against you for 60 days.

Immediate Protection Under Debt

Review
When you apply for debt review, your debt counsellor immediately informs all your creditors of your intention to enter the process. This notification includes an overview of your financial situation and a proposed repayment plan.
From the moment creditors are notified, they cannot take legal action against you for up to 60 working days. During this time, your debt counsellor negotiates with creditors to establish a sustainable repayment plan.
If an agreement isn’t reached within this period, the matter may be referred to the Magistrate’s Court, where a ruling will be made on the repayment plan. Once the court approves the plan, it becomes a legally binding court order, ensuring that you are protected from further legal action by creditors unless the court grants permission.
This process provides individuals with immediate financial relief and a structured pathway toward regaining control over their debt.

Managing Your Debt Through a Single Monthly Payment

Simplified Payments with a PDA
When you enter debt review, your multiple debt payments are consolidated into a single, affordable monthly payment made to a Payment Distribution Agency (PDA). This streamlines your finances, ensuring payments are managed efficiently.

Tailored Repayment Plan
Your debt counsellor will assess your income, essential expenses, and total debt to develop a personalised repayment plan. This ensures your monthly instalments are realistic and sustainable, helping you regain financial stability without undue strain.

Lower Instalments & Extended Repayment Period
The structured repayment plan typically includes reduced monthly instalments and a longer repayment period, making debt repayment more manageable. Once finalised, the plan is submitted to your creditors for approval.

How Payments Are Distributed
Once your creditors agree to the new terms, your monthly payment is made directly to the PDA, which then distributes the funds fairly among your creditors. The PDA ensures payments are processed correctly and charges a small administrative fee for this service.

The Importance of Timely Payments
To maintain the legal protection offered under debt review, it is essential to make your payments on time and in full. Missing payments could lead to creditors resuming collection actions, potentially putting your financial recovery at risk.

By following this structured process, debt review provides a clear path to financial stability while ensuring your obligations are met in a manageable way.

Does Debt Review Affect Your Employment?
In most cases, being under debt review will not impact your ability to secure a new job or affect your current employment. Here’s what you need to know:

Employment Protection
The National Credit Act safeguards individuals under debt review. Employers cannot terminate or discriminate against you based on your debt review status. Since debt review is not a legal offence, you typically do not need to disclose it to potential employers.

Industries Where Credit Checks May Not Matter
For non-financial roles such as retail, customer service, and administration, credit checks are usually not part of the hiring process, meaning your debt review status is unlikely to be a concern.

Industries Where Credit Checks May Apply
In finance, banking, and high-security roles, employers may conduct credit checks as part of the hiring process. While being under debt review could be considered, it does not automatically disqualify you from the position.

Should You Disclose Your Debt Review Status?
You are not legally required to disclose your debt review status during the job application process unless specifically asked. If the topic arises, being open about your commitment to financial rehabilitation can demonstrate responsibility and accountability.

Your Professional Reputation
Many employees worry about how debt review might affect their workplace reputation. However, entering debt review reflects a proactive approach to managing debt, which many employers view as a sign of financial responsibility rather than a drawback.

If you have concerns about how debt review may affect your career, seek professional advice to understand your rights and options.

Immediately! Debt Review is designed to provide financial relief from day one by restructuring your debt into a single, manageable repayment plan.

What to Expect Next:

First 5 Days: A provisional repayment plan is created, allowing you to make one affordable monthly payment instead of juggling multiple debts.

Single Monthly Payment: Your payment is made to a Payment Distribution Agency (PDA), which ensures funds are fairly distributed to your creditors.

Legal Protection: From the moment you enter debt review, creditors cannot take legal action against you for at least 60 working days while your final repayment plan is being finalized.

Final Repayment Plan: During this period, we secure a court-approved repayment plan that aligns with your budget while safeguarding your assets.

Debt review gives you the structure and protection you need to regain financial stability—starting today!

No, you won’t! Debt review is designed to protect your essential assets, including your home and vehicle. However, the outcome depends on your specific financial situation.

Key Factors That Can Affect This:

Section 129 Notice: If your credit provider has issued a Section 129 letter, you have 10 working days to apply for debt review before legal action can proceed. Acting quickly increases your chances of protecting your assets.

Legal Action Already Taken: If a summons has been issued for your home loan or vehicle finance, the situation becomes more challenging. However, a debt counsellor can still explore possible solutions.

Number & Type of Vehicles: If you own multiple vehicles, essential ones (such as your primary car for work and daily use) are prioritised. Luxury assets like jet skis and quad bikes may need to be surrendered to the bank.

Your Commitment to the Process: Staying committed to your debt review repayment plan ensures continued legal protection against repossession.

By choosing debt review, you gain a structured approach to managing your debt while safeguarding your most important assets. It provides legal protection from creditors and helps restructure your repayments into an affordable plan.