It depends on the type of debt. In terms of the Prescription Act, 68 of 1969, most debts are prescribed after 3 years. There are various exceptions for example debt secured by way of a mortgage bond, a judgment debt or taxation imposed by the state or by law, state loans and so forth. These debts each have their periods for prescription. Prescription can be interrupted in several ways. One of these is by the debtor making a payment on the debt. The prescription will then start to run afresh on the due date of his next payment.
Judgement debt for example prescribes after 30 years. It is for this reason that we take legal action as judgments are recorded by the credit bureaus on the consumer’s credit record and will influence any further credit being granted. We find that many consumers pay up immediately before judgment and even hereafter if they find out that the judgment is in the way of purchasing vehicles, home loans, credit card applications etc.