Do you have debt? Is it prescribed? You may be in luck...
Debt is a sticky issue for many, but not all debt is the same.
As we grow older, coming into this adult world, there will be payments that are required of us to pay.
Debts are always going to be there. Some organisations will, of course, hound consumers to pay their debts.
But according to the Prescription Act and the National Credit Act, there are some which fall into a grey area.
READ: Tips to help you during a period of financial pressure in South Africa!
What exactly does that mean?
According to reports from the act, prescribed debts do not need to be paid.
Debt is prescribed if...
- It is not acknowledged whether the debt is given verbally or in writing for the past three years.
- If you have not made a promise to pay the debt. Even go as far as asking how much the debt is.
- Also when the creditor has not taken you to court or set out legal action against you.
Disclaimer: One should never ignore debt and it is advisable to seek help from a debt counsellor should things start spiralling out of control.
Read more: Tips on how you can stretch your salary every month
To make sure that you have a good idea, here are some examples that can constitute as a prescribed debt after three years:
- Store and retail accounts.
- Cellphone accounts.
- Credit cards.
- Personal loans.
- Gym memberships.
- Vehicle finance
Read more: Tips to help you during a period of financial pressure in South Africa!
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