Debt review helps you pay off debt safely and easily. It also stops creditors from calling you. But can you pay creditors yourself while under debt review? Let’s explain.
Can You Pay Creditors Yourself in Debt Review?
Yes, but only if you choose this option from the start.
The National Credit Act (NCA) gives you two ways to pay:
- Pay creditors yourself – You send money to each creditor every month.
- Let a debt counsellor pay – The counsellor uses a Payment Distribution Agency (PDA) to pay creditors for you.
Which Option is Better?
Paying Creditors Yourself
If you pay creditors yourself, remember:
- You must make many payments every month.
- Each creditor needs a different amount.
- If you pay the wrong amount, you may lose debt review protection.
- You must keep all payment records and send them to your debt counsellor.
- You still need to pay debt review fees.
This option is best if you are very organised and never miss payments. But it can be stressful because you have to track multiple payments.
Paying Through a Debt Counsellor
Most people let the debt counsellor pay for them. This is easier and safer because:
- You only make one payment each month.
- The debt counsellor makes sure creditors get the correct amount.
- The PDA keeps records of payments and avoids mistakes.
- PDAs are registered and insured, so your money is safe.
- You don’t have to worry about missed payments or wrong amounts.
You will pay a small fee for this service, but it saves time and stress. It also ensures that your debt repayment stays on track.
Important Questions
Can You Pay Extra to Finish Debt Faster?
Yes! Extra payments help you finish debt review sooner. If you get extra money, like a bonus, you can use it to pay off your debt. Talk to your debt counsellor first to do it correctly.
What if You Can’t Pay One Month?
Missing a payment is serious. You could lose debt review protection. If you have problems, tell your debt counsellor immediately. They can talk to your creditors and help you find a solution.
What Happens After Debt Review?
When all your debts are paid, your debt counsellor will give you a Debt Clearance Certificate. This proves you are debt-free, and credit bureaus will remove the debt review flag from your profile. Then you can start rebuilding your credit.
Final Thoughts
Paying creditors yourself gives you control, but it is risky. Using a debt counsellor is easier and safer. If you want to get out of debt, professional help can make the process smoother.
At Pioneer Debt Solutions, we help South Africans become debt-free. If you need help, contact us today! We will guide you and find the best solution for your situation.