Imali Save

20/11/2018

After how many years is debt written off in South Africa?

Ever wonder how many years it would take for debt to be written off? Prescribed debt is old debt that has not been acknowledged, verbally or in writing, or paid for more than three years. Prescribed debt is old debt that has been written off by credit providers.

What does it mean when debt is written off?

While there are ways for creditors to still claim this debt, the amendments to the National Credit Act in March 2015 make it almost impossible for debt collectors to get back this expired debt.
Before it was up to the consumer to know this as a defense when dealing with collectors, and many collectors would be hoping to trick the consumer into paying the expired debt, but now there is a greater move to inform consumers of their rights.

However, if any payments or promises of payments have been made in that time, then the debt is still valid and the consumer is liable for it. Often collectors will try and find a way to trick you into acknowledging the debt during communications, and if you play into their hand and admit to knowing about it then they can hold you responsible.

Every consumer should know when their debt has prescribed. A debt is prescribed when:
1.A credit provider has not claimed payment, sent a letter of demand or issued summons
2.A consumer has not made any payments/acknowledged the debt directly or indirectly for the time periods specified below:◦Personal loans, credit cards, retail accounts and vehicle loans: three years
◦Mortgage loans, debts by court orders and money owed to the South African Revenue Service (SARS): 30 years

This change offers a helping hand to consumers, who until now, were unaware of what prescribed debt was. Often collectors would let the debt sit, gaining interest over a long period of time, before chasing down the debtors when the amount is much more that what it should have been.

You may contact Imali Save if you want to find out more on prescribed debt or have creditors worrying you about old debts.

16/11/2018

Understanding Debt
When controlled properly, debt is a valuable tool. Loans allow us to buy houses, cars, and educations. Lines of credit make spending more convenient. And payment plans save us from having to dealing with major expenses, such as out-of-pocket medical costs.
While debt is often necessary and useful, it can easily become a burden and we can quickly find ourselves in a hole that seems impossible to escape.
In many respects, loan structures and minimum credit card balances are designed to keep us in that hole, because as long as we’re paying interest, banks and credit card companies make billions of Rands.
However, as soon as the hole gets deeper, our lives begin to fall apart and once you’re in too deep, it doesn’t seem like there is any way out. Because debt can feel like a bottomless pit, many fail to take action, remaining in the dark about their options. Sometimes this is true for years.
People attempt to survive under increasingly impossible stress, and unfortunately the breaking point comes at the expense of relationships and personal well being.
The latest statistics show that over 7 million people in South Africa are over indebted and in need of debt counselling to solve their debt problems.
There’s always hope. The sooner you take action, the sooner you can end the vicious cycle. you can be debt free too, contact us and let us work out a comprehensive plan exclusively designed for you
Financial wellness guaranteed services

15/01/2018

15/01/2018

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