Long answer:
It can be stressful to look at your statements during debt review and see that the balances on your PDA statement don’t match the balances on your creditor statements. Many consumers assume that if the numbers are different, something must be wrong—or that a payment has not gone through. In most cases, however, differences between PDA and creditor balances are normal, especially in the first few months of debt review or after any changes to your repayment plan.
The key thing to understand is that a PDA statement and a creditor statement are produced by different systems, using different data sources, and they often reflect different dates and processing timelines. A PDA statement shows how your monthly payment was distributed to your various credit providers. A creditor statement shows what the creditor has recorded on your specific account, including interest calculations and any fees or charges applied within that creditor’s own system.
Below are the three main reasons why your PDA and creditor statements may show different balances, explained in plain language. You’ll also learn what your PDA statement actually means, when differences are normal, and what to do if the difference feels too large or continues for too long.
Understanding the difference between a PDA statement and a creditor statement
Before we get into the three reasons, it helps to clarify what each statement is meant to show:
What your PDA statement shows
A Payment Distribution Agency (PDA) is a regulated third party that distributes your debt review payment to your creditors. Your debt counsellor instructs the PDA on which creditors to pay and how much to pay each month. The PDA statement is essentially a record of:
how much money you paid into the debt review system,
how that payment was split across your creditors,
when those payments were made out to the creditors,
and sometimes what balances are shown on the PDA system.
In other words, the PDA statement is mainly a distribution report—it shows what was paid, to whom, and when.
What your creditor statement shows
A creditor statement is generated by the credit provider (bank, store account provider, or lender). It shows what’s happening inside your account at that creditor. This includes:
the balance on the creditor’s system,
payments the creditor has received and allocated,
interest charged (and how it was calculated),
fees, insurance charges, or admin costs where applicable,
and the date each transaction is posted on the creditor’s side.
Because of those differences, it’s possible—sometimes very likely—that the two statements will not match at all times.
Three reasons why balances on PDA and creditor statements differ
1) PDA balances are estimates (data captured must be accurate)
The first and most important point is that balances shown on statements your debt counsellor issues—based on PDA information—are estimates. These balances depend on what information is recorded in the PDA system, and that information must be accurate for the estimate to match what the creditor shows.
Why this happens
When you enter debt review, your debt counsellor captures your account details and balances on the PDA system. This may include:
account numbers,
current outstanding balances,
interest rates (where relevant),
agreed instalments,
and creditor contact details.
If any of this information is incorrect, outdated, or incomplete, the PDA statement may reflect a balance that does not align with the creditor’s “live” balance. Even a small mistake—such as an incorrect account number or an older balance used during setup—can cause differences that persist until the information is corrected and updated.
Why estimates are still useful
Even though PDA balances are estimates, they still serve an important purpose: they help track the progress of payments and distribution. But it’s important to interpret them correctly:
Treat the PDA balance as a working estimate, not a final “closing” balance.
Treat the creditor statement as the source of truth for the exact balance on that account.
This is why debt counsellors regularly check balances and update systems when needed—especially if the accounts are large or if the repayment plan changes.
2) Different processing times (timing affects interest and balances)
A second major reason for balance differences is timing. The PDA and the creditor often process and record transactions at different times.
What usually happens in practice
Here’s a common timeline:
You pay your monthly debt review instalment (often by debit order).
The PDA receives the money and processes distribution.
The PDA pays the creditors according to instructions.
Each creditor receives the payment—but may only allocate it to your account a few days later.
That delay can make the balances look different, even when everything is working correctly.
Why timing affects the outstanding balance
Many creditors calculate interest based on daily balances or specific billing cycles. If the creditor allocates your payment later than the PDA distribution date, the creditor’s system may charge interest for those extra days. That small difference in interest can change the outstanding balance and make it appear as though the PDA balance is “wrong.”
This is not necessarily incorrect processing—it’s simply that:
the PDA records the payment when it distributes it,
but the creditor records the payment when it is received and posted to your account.
In some cases, creditors also have internal processing cut-off times. If a payment arrives after a cut-off, it may only reflect on the next business day (or later). Over time, these small differences can accumulate into noticeable balance gaps.
“Up to three months of differences is normal”
Consumers often worry when balances don’t align immediately. In debt review, it’s common for balances to differ for a period—especially early on. You can sometimes see up to three months of payment differences, and this is generally considered normal in many cases. It usually settles as the payment cycle becomes consistent and updated balances are confirmed and captured.
Why the debt counsellor may need to update balances
Because timing differences can affect balances, debt counsellors often need to contact credit providers to obtain updated balances and ensure the information in the system reflects what the creditor shows. Regular updates reduce confusion and help make the repayment plan as accurate as possible.
3) Unknown or unrecorded charges (creditor adds costs the PDA hasn’t captured yet)
The third reason balances differ is that creditors may sometimes add charges that the PDA system is not immediately aware of.
What kind of charges can cause differences?
Depending on the type of credit agreement, creditors may add:
service fees or account fees,
insurance premiums (where applicable),
interest adjustments,
legal or collection-related charges (in certain circumstances),
or admin charges tied to account maintenance.
If these charges are applied on the creditor’s system and the PDA hasn’t been updated with them yet, the creditor balance will look higher than the PDA balance.
Why charges may need manual updates
Some changes don’t flow automatically into PDA reporting. That means charges may need to be:
verified with the creditor,
reflected accurately in the updated balance,
and sometimes manually adjusted in the system.
This is another reason why PDA balances should generally be treated as estimates rather than definitive account balances. The PDA statement is excellent for showing payment distribution, but it is not always a complete picture of every charge and recalculation on the creditor’s internal system.
Why a PDA is used during debt review
Debt review is regulated, and the payment process follows strict rules. In terms of debt review regulations:
the debt counsellor does not pay credit providers directly, and
the debt counsellor is not allowed to receive money directly from the consumer for distribution to creditors.
Instead, the debt counsellor uses a Payment Distribution Agency (PDA)—for example, Hyphen or DC Partner. The debt counsellor instructs the PDA:
which creditors to pay,
and how much to pay to each.
This structure exists to protect consumers and ensure transparency. It creates a clear record of what you paid and where the money went. The PDA statement is proof of distribution, which is useful for compliance and accountability across the debt review process.
What you should do if the balances worry you
Seeing different numbers can still be unsettling, even when it’s normal. Here’s a practical way to approach it:
1) Check whether payments were distributed
If your PDA statement shows that payments were distributed to your creditors, that is a strong sign that the process is working as intended.
2) Look for a pattern (not a single month)
One month’s difference is often timing-related. If the gap keeps growing month after month, it’s worth investigating.
3) Speak to your debt counsellor for updated balances
Your debt counsellor can request updated balances directly from your credit providers and make sure the system reflects the latest information.
Need help confirming your balances?
If you want to confirm the correct balances on your accounts while under debt review, you’re welcome to contact our experts. Our consultants can contact your credit providers on your behalf, request the latest balances, and help explain any differences between the statements so you know exactly where you stand.