How Long Does Debt Review Last?
The debt review process.
To understand how long debt review lasts, it's important to dissect exactly how the process works. Managing debt can be hard, but it's important to be realistic about how much time you have to pay off the interest.
How does debt review work?
Within the South African debt relief industry, debt review is very different from debt write-off. The latter is usually specific to banks and creditors writing off a portion of money owed to them by an individual or company, typically under the condition that they are unable to pay back their debts.
This can be disastrous for someone with too much debt as it will mean they are unable to develop any sort of credit rating, but if their financial situation improves they might still owe more than their current credit limit permits.
Debt review is a better option for people who are over-indebted due to factors like unemployment, medical conditions, unexpected parenthood or sudden retrenchment that might occur through no fault of their own.
Factors that affect how long debt review lasts
If you are under pending debt, your creditors cannot “blacklist” you. If, however, you still have outstanding debts that have not been well managed before you enter debt review, these may be listed on your credit report. This is why it’s important to seek help earlier than later when it comes to your money troubles.
- How much debt you have
- How much you can afford to repay monthly
- Your commitment to becoming debt-free
How long debt review takes will depend on your commitment to this new strategy. Many people find that once they've tried debt review for a month or two, they have more money to do with whatever they want. The advice is simple: Commit to this new lifestyle and you'll be out of debt in no time!
Credit Health is here to help. Let’s start your journey towards a better financial future, together.