How long before debt is written off in South Africa?

Struggling with debt can feel overwhelming, and many South Africans wonder if their debt can be written off. The good news is that in some instances, this is possible – but only if your debt meets the legal requirements to be considered prescribed.

Prescribed debt refers to debt that has “expired” because enough time has passed without payment or acknowledgement of the debt.

If your debt qualifies, you may no longer be legally obligated to repay it. However, this only applies under specific conditions – and in most cases, unpaid debt will not automatically be written off.

In this guide, we’ll explain what prescribed debt means, how long it takes before debt is written off in South Africa, and what steps you can take if you believe your debt has prescribed.

What does it mean when debt is written off?

“Written off” means a creditor has decided, for accounting reasons, that they are unlikely to be paid. They therefore “write off” or cancel the debt.

This does not automatically erase your legal duty to pay – a debt only truly falls away if it prescribes (becomes too old to collect) or a court order settles it.

What is prescribed debt?

As mentioned above, prescribed debt is debt that has effectively “expired”.

This happens when a creditor has not contacted you, and you haven’t made any payments or acknowledged the debt for a set period.

For most types of credit, the repayment period is typically three years. However, some debts – such as a home loan or a court judgement – can only prescribe after 30 years.

For a debt to be considered prescribed, all of the following must apply:

• You have not acknowledged the debt in writing or verbally for three years.
• You have not made, or promised to make, any payments during this period.
• You have not been served with a summons or other legal action from the creditor.

If all these conditions have been met, the debt can no longer be legally enforced.

Quick facts: The prescription clock  

The prescription clock is the legal time limit during which a creditor can pursue a debtor to repay a debt. Think of it as a countdown timer that starts ticking from the moment a debt is incurred or last acknowledged.

This means:

• Monthly payments: Prescription starts from the date each missed payment was due
• Lump sum debts: Prescription starts from the original due date
• Credit agreements: Prescription usually starts from the date of the first default

The prescription period restarts if you:

• Acknowledge the debt in writing, including signing payment arrangements, making written promises to pay, or simply admitting to the debt
• Make a payment of any kind – even a small, partial payment
• Verbally acknowledge the debt in court

If you do any of the above, creditors get a brand-new, three-year window to pursue debt collection.

For example, if your debt was two years and 11 months old (almost prescribed), and you send an email to a creditor admitting you owe the money, the prescription period resets.

What is non-recognition of debt by a debtor?

For a typical consumer debt to prescribe, there must be:

• No payments by you
• No acknowledgement of the debt by you, in writing or otherwise
• No summons served by the creditor

Creditors contacting you does not stop prescription – your payment or acknowledgement of the summons does.

Once prescribed, collecting or selling the debt is unlawful under the National Credit Act (NCA).

Prescription periods by debt type 

Knowing how long it takes for different types of debt to prescribe can help you understand your rights. The Prescription Act 68 of 1969 clearly sets these out.

The National Credit Act (NCA) 2005

The NCA governs credit agreements in South Africa and offers consumer protection.

For example, for debts under credit agreements (such as credit cards, personal loans, or retail accounts covered by the NCA), section 126B of the NCA makes it unlawful to sell or continue collecting a debt that has prescribed.

In the past, creditors would often ignore the debt, allowing it to accrue interest, and then pursue collection after the debt had grown substantially more than the original amount.

How do creditors get you to acknowledge debt?

Creditors may contact you repeatedly through calls, messages, and letters to force you to respond.

Once you acknowledge the debt in any way, the three-year prescription period restarts, giving them fresh legal grounds to collect.

What happens if you don't acknowledge debt?

The answer to this depends on the amount of time that’s passed.

If you haven’t acknowledged the debt within three years: Creditors can still take legal action, obtain court judgements, or issue summonses, even if you don’t respond.

If you haven’t acknowledged the debt for longer than three years: The debt prescribes if the creditor hasn’t contacted you or taken legal action.

What happens to unpaid debt after three years in South Africa?

Under the Prescription Act, contractual and civil debts are written off after three years if not paid or acknowledged.

For debts covered by the NCA (most consumer credit agreements), Section 126B prohibits creditors from selling, continuing to collect, or reactivating prescribed debt. This means that once your consumer debt prescribes after three years:

1. The debt is legally extinguished – not just unenforceable but actually eliminated
2. Creditors cannot pursue collection – banks and other creditors are prohibited from collecting or selling prescribed debt under NCA protection
3. You don't need to raise the prescription defence – debtors no longer have to be aware of this law, and they don’t have to raise the defence of prescription to be absolved

What does it mean to default on your debt?

Default means you missed the payments you were supposed to make.

This typically occurs when you’re unable to keep up with your monthly bills, loan repayments, and credit card payments. Once you miss payments, you’ll be considered “in default.” Creditors may then contact you through calls, letters, or even take legal steps to recover the money.

Of course, if debt has prescribed, creditors can no longer take legal action against you. Find out if you have prescribed debt by filling in our form for a free call-back and debt assessment.

Debt groups and their prescription periods

The time frames for prescription debt depend on the types of debt. In South Africa, debt is grouped into three broad categories:

Loan Group A (3 years):

• Personal loans
• Vehicle finance 
• Credit cards
• Store accounts
• Cell phone accounts
• Gym memberships

Loan Group B (15 years):

• Income tax debt
• Some student loan debt

Loan Group C (20 years):

• Home loans
• Court-ordered debt judgements

What happens to your credit score if you do not repay your debt?

When you don’t repay debt, your credit score drops.

A lower credit score makes you a higher-risk borrower. This can prevent you from getting new loans, credit cards, or even cell phone contracts.

South Africa’s credit bureaus record missed payments, defaults, and judgements, which will reflect on your credit profile.

Can I simply ignore debt until it goes away?

No – you should never ignore debt.

Ignoring payments can lead to:

• Repossession of your assets 
• Legal action and court judgements
• Extra fees and interest, which make the debt even bigger

Hoping debt will prescribe is risky. Creditors are unlikely to stop contacting you, and your debt will not just disappear.

What to do if you are struggling with debt repayments

If you can’t keep up with debt repayments, get help before legal action starts.

By contacting DebtBusters for a free debt assessment, you may be able to:

• Protect yourself from  legal action and repossession
• Find out if any of your debts have prescribed
• Explore solutions like consolidating your debt

Alternatives if your debt won’t prescribe

If your debt doesn’t qualify as prescribed, there are still some options.

1. Consolidating your debt through:

• Debt counselling, also known as debt review, is a regulated process under the NCA. It allows you to consolidate your debts into one lower monthly instalment and will protect you from legal action by your creditors.
•  A debt consolidation loan. This allows you to consolidate multiple debts into a single loan with a single interest rate and monthly payment. You need an unimpaired credit score to qualify, however.

2. Voluntary surrender or sequestration: A legal process where your assets are sold to settle your debts. This releases you from having to pay any unpaid balances.

Find out more about prescribed debt from the experts 

Fill in our call-back form today and speak to a debt specialist for free.

FAQs

1. Does prescribed debt disappear from my credit report automatically?

No. Once a debt prescribes (usually after three years of inactivity for standard consumer credit), it can still appear on your credit report. You need to dispute it with the credit provider and, if the information isn’t updated in your credit report, you can send a written dispute to each credit bureau. Credit bureaus have 20 working days to investigate and remove a proven prescribed listing.

2. Can a creditor still sue me after the three-year prescription period?

No. A creditor may try to sue, but the law prevents the enforcement of a debt that has prescribed, in terms of the Prescription Act 68 of 1969, unless prescription has been interrupted.

Section 126B of the NCA prohibits the sale, collection, or reactivation of prescribed NCA debts.

If you’re taken to court, raise the prescription defence and the case should be struck off the roll. 

3. What actions restart (“interrupt”) the prescription clock?

Any explicit acknowledgement of the debt, such as:

• Making even a small payment
• Signing an Acknowledgement of Debt (AOD)
• Confirming the balance, verbally or in writing

Each of these restarts the clock and gives the creditor a new prescription period to pursue you. 

4. Does the three-year rule apply to every kind of debt?

No. Prescription periods differ:

• Most unsecured consumer credit (credit cards, personal loans, retail accounts) is prescribed after three years
• Home loans and court judgements fall into the 30-year category under the Prescription Act
• Tax debt to SARS – the Tax Administration Act limits SARS to initiating recovery within 15 years from the date an assessment becomes final
• Municipal rates are generally treated as taxation and attract long prescription periods (usually 30 years), but specific municipal service charges and billing complexities can produce different outcomes – get legal advice for individual cases

5. How can I confirm a debt has prescribed and stop illegal collection calls?

Check the date of your last payment or written acknowledgement. Ask the collector for a copy of the original signed agreement and a recent statement of account to verify that the debt is still active. If no qualifying activity falls within the prescription window, the debt has prescribed. Send a written dispute letter, citing the Prescription Act and NCA 126B. If harassment persists, escalate the matter to the National Credit Regulator.