An emergency during debt review: what to do next

An emergency can change what you can afford while you are under debt review. Contact your existing counsellor promptly with the changed figures and supporting documents. Ask what can be considered for your particular plan before changing any payments.

1. Explain what changed

State whether the problem is an unexpected expense, reduced income or both. Include the date it started, the amount involved and whether you expect it to continue.

Examples include a medical bill, funeral costs, essential repairs or loss of work. Explain the practical effect on your budget rather than only saying that you cannot pay.

2. Prepare a short document pack

• Your current repayment amount and the next payment date.
• Updated take-home income and essential living expenses.
• Evidence of the emergency, such as an invoice or retrenchment letter.
• Details of any insurance or benefit claim already submitted.
• Any creditor letters or legal notices received.

The assessment checklist can help organise the information. Send sensitive documents only through the channel your counsellor confirms.

3. Ask what can be considered

Your counsellor needs to assess the accounts, the existing arrangement and its legal stage. Ask whether a revised proposal or formal relief request is possible, who must approve it, whether costs apply and what you must do while waiting.

Raising a request does not itself pause payments, interest or fees. Get a clear written explanation of any approved change, the accounts covered and when normal payments would resume.

4. Keep track of the response

Keep copies of messages, documents, decisions and payment instructions. Confirm the next action and who is responsible for it. If a payment has already been missed, say so and ask about the current position of each affected account.

Read the missed-payment guide for that situation. If the problem follows job loss, use the retrenchment checklist.

5. Review the budget after the immediate problem

Check whether your income and essential spending now differ from the figures used for the plan. A lasting shortfall needs attention even if the immediate expense is resolved.

When the budget allows, the emergency fund calculator can help plan a savings target. It is for future preparation and does not solve a current cash shortage.

If you are considering another loan, read about credit restrictions during debt review and the urgent-money checklist first.