Many consumers don’t know how to budget and fall behind on the debt repayments. Moreover, the very same way that consumers neglect to pay their debts, in some cases credit providers neglect to claim payment from those who owe them. Many consumers are unaware of this, and in turn are unaware that their debt could be written off if it is regarded as prescribed debt. When debt is categorized as prescribed, this means that the debt has not been acknowledged by you nor the NCR registered credit provider in three years. This acknowledgement can either be verbal or in writing.
This is why it is important for consumers to know their rights. If a consumer makes any payment or makes a verbal agreement to make payment,this would make the debt valid and automatically, the consumer would then be responsible for payment.
There are different timelines for different types of debt. Below is a table of the types of debt and how many years it would take for those particular debts to be written off:
|Types of debt||Number of years for debt to be prescribed|
|Debt by court order||30|
|Money owed to SARS||30|
If you’ve made the mistake of acknowledging a debt that has already been prescribed, it is advised to get legal advice. Of course, this comes with legal charges. If you’d rather just settle the debt and get a consolidation loan instead, or if you’d rather opt for debt consolidation, fill out our application today and Quick Consolidation Loans will do our very best to help you out!
We will be able to offer advice on the suitability of debt consolidation to your specific financial situation, as there are instances where it would prove unsuitable. Our consultants will be able to help you with regards to secured and unsecured debt consolidation, and advice as to which would be most favorable to your outstanding debts. Operating on a national basis, we can also provide you with debt counseling or a debt review in South Africa. As mentioned, debt consolidation could save you on monthly payments and interest rates, which has made it a viable option for many. To find out if debt consolidation in South Africa is an option for you, contact Quick Consolidation Loans today.