What Happens to Credit Cards Under Debt Review?
Under debt review, your credit card accounts are included in the restructured repayment plan and you generally cannot use the cards for new purchases. Your debt counsellor proposes revised repayment terms to the card provider, and payments are made through a Payment Distribution Agency. The cards are typically closed to further spending while you repay the outstanding balances.
Key Points
- Credit cards are included in the restructured repayment plan.
- You generally cannot use the cards for new purchases.
- Repayment terms and interest may be renegotiated.
- Payments are distributed via a registered PDA.
Can you keep using your credit card?
Generally no. Once a credit card is included in debt review, the account is restructured and you cannot continue drawing on it. This is a protective feature — it prevents further borrowing while you repay the existing balance.
The card provider is notified of the debt review, and the account is managed under the restructured plan.
How are the repayments handled?
Your debt counsellor calculates an affordable monthly amount and proposes revised terms to the card provider. Payments are made through a registered Payment Distribution Agency, which allocates funds to each creditor according to the plan.
This means you make one consolidated payment rather than managing multiple card payments yourself.
Can the interest be reduced?
Credit card interest rates may be negotiated down as part of the restructuring proposal, where the credit provider agrees. Lower rates mean more of your payment goes toward reducing the capital balance.
Reductions are not guaranteed and depend on the creditor and the applicable restructuring rules.
Frequently Asked Questions
Worried That Your Debt Has Become Unaffordable?
Debt Guidance can assess your income, essential expenses and debt commitments to determine whether debt review may be appropriate.
Reviewed by Carolina Guevara Harris
Registered Debt Counsellor · NCRDC3152
Last updated: 17 September 2025
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