HOW LONG DOES DEBT REVIEW LAST?

To understand how long it takes to get out of debt review, you have to know the debt review process and how we are able to assist you.

Debt review is a rehabilitation program to help South Africans who are over-indebted. Being over-indebted means you do not have enough money to pay all your debts every month. Under debt review, a debt counsellor finds out how much money you owe and how much money you can spend on debt every month. Then, they make you a new, affordable repayment plan.

In the new plan, they tell your credit providers that you need to pay less every month. This also means you need more time to settle the debt. If they agree, we consolidate your debts and you only pay one amount every month.

Everyone has a different amount of money they owe. Everyone has different credit providers. Everyone has a different amount they can spend on debt every month. So, everyone’s debt review plan is different and takes a different amount of time to finish.

WHAT DETERMINES HOW LONG DEBT REVIEW LASTS?

Many things determine how long you have to be under debt review, including:

• How Much Debt You Have
   The more money you owe, the longer it will take to pay it back and the longer you will have to be under debt review.
• How Much You Are Able to Repay per Month
   The more money you earn and the fewer your expenses, the more money you will have to spend on debt repayments. If you don’t have much money after paying your expenses, you will have to be under debt review for longer.
• The Interest Rates You Have to Pay on Each Debt
   Think of interest like rent. You pay rent to live in a house that isn’t yours. In the same way, you pay interest to use money that isn’t yours. The higher the interest rate, the more money you have to pay on the credit. The more the interest, the longer it will take to settle and the longer you will be under debt review.
• The New Repayment Plan We Negotiate
   When we lower how much you owe every month, it can lengthen your payment period. Sometimes though, they can lower your interest rates too and reduce your total debt.
• How Committed You Are to Repaying Your Debt
   The more payments you skip, the longer it will take to repay all your debt.

HOW LONG DOES DEBT REVIEW LAST FOR MOST PEOPLE?

Most people take 36–60 months to become debt free. That is 3–5 years. Don’t let this scare you off. Everyone is different and a lot of people pay off their debt quicker than that under debt review.

HOW TO GET OUT OF DEBT REVIEW FAST

If your financial position improves while under debt review, you can speed up the process. For example, you can start paying bigger monthly payments or even a once-off lump sum. Want to know how to pay off your debt quicker? We have a few tips:

• Earn more money to pay more debt
   Examples: Get a second job. Work overtime or extra shifts. Sell your extra car or holiday home. Rent out a room in your house.
• Spend less money on other expenses
   Examples: Only spend money on what you need. Change your lifestyle, insurance provider or medical aid plan. Trade in your car for a cheaper model.
• Use bonus money on debt repayments
   Examples: Bonuses, 13th cheques, policy payments and tax returns.

Pay off small debts first
 If you get extra money, ask your debt counsellor to use it on smaller debts. That way, you owe less creditors, pay less interest and have more money to pay off larger debts. This is called the debt snowball method