The Ways to Clear Your Debt in South Africa

How do I clear my name from the credit bureau in South Africa? 

The simplest way to clear your name from the credit bureau is to pay off the debt. According to TransUnion, one of South Africa’ biggest credit bureaus, this will usually result in your name being removed from the blacklist within 7 – 20 days.

How long before a debt is written off in South Africa?

In South Africa, Prescribed debts are generally contractual and civil debts that should be extinguished or written off after a period – typically three years – from the date when the payment was due.

What is the fastest way to get out of debt in South Africa?

7 important  steps to get out of debt faster

• Know why you want to do this:

You need to be purpose-driven to get out of your debt. We all have our own private goals, so home in on yours. Use this to develop a picture of what your future self looks and feels like – the one with less debt, and more to spend on your goals. Whenever you’re about to spend money that should be going towards your debt, recall this picture of your future, happy self.

• Pay more than the minimum amount due.

• Use an accelerated payment strategy.

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• Grow your income.

• Adjust your lifestyle. 

• Sell what you don’t need.

• Consolidate or switch for a better interest rate.

What happens if you can’t pay your debt in South Africa?

In South Africa, a  judgement will state that you have not paid your debt and it will reflect on your credit record for 5 years. When a judgement is granted, a creditor can apply for a warrant where the sheriff can attach goods such as your furniture and sell these to pay your debt.

How long can debt be chased South Africa?

In South Africa, there are  different laws which specify prescription periods, for example, the Prescription Act says that contractual and delictual debts extinguish after three years from the date when it became payable (due). Prescription periods may, in certain circumstances, be delayed or interrupted.

Can debt collectors take you to court South Africa?

Yes. In a Situation, where the debtor has no property (movable or immovable) to sell to settle the debt the creditor may proceed with a financial enquiry in court. This is known as a Section 65A (1) Notice for the debtor to appear in the relevant court together with all his/her financial documents as proof of all income and expenses.