… Forgiveness is right there in the name. So if you are saying he still has to pay you then you are saying you have NOT forgiven his debt…
Not exactly. You might want to refer to a section in the Catechism covering the Sacrament of Reconcilliation titled “Satisfaction.” (Boldface mine)
Satisfaction
1459 Many sins wrong our neighbor. One must do what is possible in order to repair the harm (e.g., return stolen goods, restore the reputation of someone slandered, pay compensation for injuries). Simple justice requires as much. But sin also injures and weakens the sinner himself, as well as his relationships with God and neighbor. **Absolution takes away sin, but it does not remedy all the disorders sin has caused.**62 Raised up from sin, the sinner must still recover his full spiritual health by doing something more to make amends for the sin: he must “make satisfaction for” or “expiate” his sins. This satisfaction is also called “penance.”
1460 The penance the confessor imposes must take into account the penitent’s personal situation and must seek his spiritual good. It must correspond as far as possible with the gravity and nature of the sins committed. It can consist of prayer, an offering, works of mercy, service of neighbor, voluntary self-denial, sacrifices, and above all the patient acceptance of the cross we must bear. Such penances help configure us to Christ, who alone expiated our sins once for all. They allow us to become co-heirs with the risen Christ, "provided we suffer with him."63
The satisfaction that we make for our sins, however, is not so much ours as though it were not done through Jesus Christ. We who can do nothing ourselves, as if just by ourselves, can do all things with the cooperation of “him who strengthens” us. Thus man has nothing of which to boast, but all our boasting is in Christ . . . in whom we make satisfaction by bringing forth “fruits that befit repentance.” These fruits have their efficacy from him, by him they are offered to the Father, and through him they are accepted by the Father.64
The section on the effects of the sacrament is also of interest:
IX. THE EFFECTS OF THIS SACRAMENT
1468 **“The whole power of the sacrament of Penance consists in restoring us to God’s grace and joining us with him in an intimate friendship.”**73 Reconciliation with God is thus the purpose and effect of this sacrament. For those who receive the sacrament of Penance with contrite heart and religious disposition, reconciliation "is usually followed by peace and serenity of conscience with strong spiritual consolation."74 Indeed the sacrament of Reconciliation with God brings about a true “spiritual resurrection,” restoration of the dignity and blessings of the life of the children of God, of which the most precious is friendship with God.75
1469 This sacrament reconciles us with the Church. Sin damages or even breaks fraternal communion. The sacrament of Penance repairs or restores it. In this sense it does not simply heal the one restored to ecclesial communion, but has also a revitalizing effect on the life of the Church which suffered from the sin of one of her members.76 Re-established or strengthened in the communion of saints, the sinner is made stronger by the exchange of spiritual goods among all the living members of the Body of Christ, whether still on pilgrimage or already in the heavenly homeland:77
It must be recalled that . . . this reconciliation with God leads, as it were, to other reconciliations, which repair the other breaches caused by sin. The forgiven penitent is reconciled with himself in his inmost being, where he regains his innermost truth. He is reconciled with his brethren whom he has in some way offended and wounded. He is reconciled with the Church. He is reconciled with all creation.78
1470 In this sacrament, the sinner, placing himself before the merciful judgment of God, anticipates in a certain way the judgment to which he will be subjected at the end of his earthly life. For it is now, in this life, that we are offered the choice between life and death, and it is only by the road of conversion that we can enter the Kingdom, from which one is excluded by grave sin.79 In converting to Christ through penance and faith, the sinner passes from death to life and "does not come into judgment."80
Yet absolution does not magically remove the temporal consequences of a sin:
The punishments of sin
1472
To understand this doctrine and practice of the Church, it is necessary to understand that sin has a double consequence. Grave sin deprives us of communion with God and therefore makes us incapable of eternal life, the privation of which is called the “eternal punishment” of sin. On the other hand every sin, even venial, entails an unhealthy attachment to creatures, which must be purified either here on earth, or after death in the state called Purgatory. This purification frees one from what is called the “temporal punishment” of sin.
These two punishments must not be conceived of as a kind of vengeance inflicted by God from without, but as following from the very nature of sin. A conversion which proceeds from a fervent charity can attain the complete purification of the sinner in such a way that no punishment would remain.84
1473
The forgiveness of sin and restoration of communion with God entail the remission of the eternal punishment of sin, but temporal punishment of sin remains. While patiently bearing sufferings and trials of all kinds and, when the day comes, serenely facing death, the Christian must strive to accept this temporal punishment of sin as a grace. He should strive by works of mercy and charity, as well as by prayer and the various practices of penance, to put off completely the “old man” and to put on the "new man."85