Debtfree Magazine October 2017

HOW LONG DOES IT TAKE TO REPAY DEBT?
DEBT REVIEW
Debt review is a legal process where a court restructures a consumers
debt repayment obligations. Smaller debt amounts can be paid within
a few months but debt review can also be used to pay off millions of
Rand in debt.
A consumer is able to stay in debt review and pay off all their smaller
debts until they only have their home loan left, and then they can leave the
process and gain access to credit again.
Most credit providers like to receive repayment plans over 60 months (5
years)*. Credit providers like to see everyone treated the same, and so
even small debt amounts are often calculated over the same 60 month
time period. As a result many Debt Counsellors first try see if a plan over
60 months will work for the consumer before looking at shorter or longer
repayment options.
* Each consumers’ debt review is unique and repayment terms differ as a result. We are
using the average and credit provider preferred repayment terms which are not obligatory,
since the National Credit Act only stresses the ‘eventual’ satisfaction of debt, which could
take many years. Ultimately a court decides how much is paid each month and for how
long, not the Debt Counsellor (who makes a suggestion) nor the credit provider.