The one misunderstanding of most South Africans
If you are under debt review, you might be thinking, “If I wait long enough, will my debt just be written off?” That is where many people get it wrong.
Yes, in terms of prescribed debt in South Africa, debt can prescribe. This means that the law says it can’t legally be collected anymore. But this only happens when there has been absolutely no payment, no acknowledgement, and no legal action for a set period.
The debt review process changes things completely.
When you are under debt review you are making regular payments, your debt has been formally acknowledged, and your repayment plan is often backed by a court order
That means there is ongoing activity on the debt. And that activity keeps the debt “alive”.
Where people get caught out
The confusion usually comes from mixing two different ideas:
- The rules about prescribed debt in South Africa need no activity over time
- Debt review is about structured, ongoing repayment
These two don’t work together in the way people expect.
Another common mistake is assuming all debt prescribes after three years. It does not. It depends on the type of debt.
For example, for credit cards and personal loans the period is usually three years whereas for home loans and court judgments, it can reach up to 30 years. Some government debt may not prescribe easily.
How to check if a debt may be prescribed
If you aren’t sure if you have prescribed debt, keep the process practical:
- Check your credit report
- Look at the last payment date
- Then check if any legal action was taken
If you spot this debt category on your credit report, you can take steps toward removing prescribed debt from your credit report.
Start by disputing it with the credit bureau that issued the report. If you don’t get a response, you can escalate your request to the Credit Ombud or the National Credit Regulator.
There are two simple points to remember here.
One, that debt only prescribes when nothing is happening on the account in question. And two, that the debt review process is a structured system where something is always happening.
So don’t get caught out by “waiting it out”. It’s always better to know how much debt you have and the status of those accounts.
Be in the know about your debt
If you are not under debt review and are trying to figure out where you stand, do not guess. Check your full credit report and see exactly what is active debt and what is not.
Get your credit report with Finance365 today and take a clear, informed decision about how to handle your debt.
