In South Africa, debt does not hang over someone forever — the law sets strict time limits on when creditors can enforce payment. This is known as prescription of debt. For most everyday debts, such as credit cards, medical bills, and personal loans, the period is three years from the date payment was due. Other debts, like mortgage bonds, court judgments, and tax owed to SARS, can run for 30 years.

Once a debt prescribes, the creditor loses the right to sue for it. But prescription is not automatic: if the debtor does not raise it as a defence, the court may still grant judgment. That is why both creditors and debtors need to understand exactly how long it takes for debt to prescribe, what interrupts the clock, and what rights remain once time has run out.

What Is Prescribed Debt?

Prescribed debt is debt that has become legally unenforceable because too much time has passed without the creditor taking action. South African law, through the Prescription Act 68 of 1969, sets these limits to prevent old claims from hanging over people indefinitely.

Key points to understand:

• The debt does not vanish. You may still owe the money in principle, and creditors may still try to collect it. What changes is their ability to enforce it in court.
• Prescription is a defence, not a gift. If a creditor issues summons on a prescribed debt, the court will not dismiss it automatically. The debtor must raise prescription as a defence. If they do not, judgment can still be granted.
• Acknowledgement resets the clock. Any written acknowledgement of the debt or a part-payment restarts the prescription period. A small payment on an old account can breathe new legal life into the whole debt.

This is why prescribed debt in South Africa is so often misunderstood. The obligation may remain in principle, but once prescribed it cannot be converted into a judgment. For creditors, this means acting before time runs out. For debtors, it means knowing when a demand has lost its legal teeth.

How Long Does It Take for Debt to Be Prescribed?

The Prescription Act sets out clear timelines for different categories of debt. The period begins when payment first becomes due — usually the date on which the debtor was supposed to pay — unless interrupted by acknowledgment or legal action.

• Three years: Most everyday debts prescribe after three years. This includes credit cards, personal loans, retail store accounts, medical bills, and other unsecured debts.
• Six years: Debts arising from negotiable instruments, such as cheques or bills of exchange, have a six-year prescription period.
• Thirty years: Certain debts enjoy extended protection:
  • Mortgage bonds
  • Tax debts owed to SARS
  • Court judgments already granted

Two important cautions:

1. Acknowledgment resets the clock. If a debtor makes part-payment or confirms the debt in writing, the prescription period starts running anew from that date.
2. Legal action interrupts prescription. Once summons is served, the prescription period stops — even if the case takes years to conclude.

This means a credit card account might become unenforceable after three years of silence, but a judgment or mortgage bond can be pursued decades later.

Can You Be Blacklisted for Prescribed Debt?

South African law is clear: once a debt has prescribed, it cannot lawfully be enforced, and it should not be listed on your credit profile. But in reality, prescribed debt often finds its way into collection systems and credit records long after it has lost legal force.

The legal position

• The Prescription Act strips creditors of the right to sue on prescribed debts.
• The National Credit Act goes further by prohibiting the sale or collection of prescribed consumer debt.
• Credit bureaus are required to remove listings for prescribed debt once the consumer provides proof or raises prescription as a defence.

The practical reality

• Collection agencies may still chase prescribed debt. Some continue sending letters or making calls, banking on the fact that many consumers do not know their rights.
• Small payments can reset the clock. A debtor who pays R100 “just to get them off my back” may inadvertently revive the entire debt and give the creditor a fresh three-year window to sue.
• Credit bureaus don’t always act automatically. Unless the debtor disputes the listing, old accounts may linger, damaging access to credit or employment opportunities.

Why this matters for debtors

• Being blacklisted for prescribed debt can undermine financial recovery, even though the debt is no longer enforceable.
• Consumers must take an active role: lodge a dispute with the credit bureau, demand written confirmation from the creditor, and, where necessary, instruct attorneys to intervene.

Why this matters for creditors

• Continuing to pursue prescribed debt is not only unlawful but risky. The courts have made it clear that creditors who attempt to collect prescribed debts may face penalties, reputational harm, or regulatory action.

Prescription is meant to bring certainty: after a defined period, the law draws a line. Creditors should act before that line is crossed; debtors should not be pressured once it has.

Does Unpaid Debt Ever Go Away?

The short answer is no — unpaid debt does not simply vanish. The money was advanced, the goods were delivered, or the service was rendered, and that obligation exists in fact. What does change is whether the creditor can legally enforce it. This is where prescription of debt becomes decisive.

Legal enforceability vs. moral obligation

• After prescription: the creditor loses the right to obtain judgment through the courts. This means no summons, no writ of execution, no garnishee orders. Legally, the debt is dead once the defence is raised.
• In reality: creditors or collectors may still phone, send letters, or attempt to persuade payment. The debt exists as a historical obligation, even if the law no longer gives it teeth.
• For the debtor: the real protection lies in knowing when to assert prescription as a defence, rather than assuming silence equals safety.

Why some debts linger indefinitely

• Acknowledgments restart the clock. A small payment or written confirmation revives the debt, giving creditors a fresh three-year enforcement period (or longer, depending on the type of debt).
• Judgments extend the timeline. Once a court order is granted, the debt prescribes only after 30 years — making it practically impossible to “wait it out.”
• Credit reporting gaps. Even when the law says prescribed debt should not appear, outdated information can remain on credit profiles until formally challenged.

Unpaid debt does not fade quietly into the background. For creditors, it remains a loss on the books. For debtors, it can resurface at any time unless they understand their rights and assert them firmly. The question is not whether the debt still “exists,” but whether the law will allow it to be enforced.

Prescribed Debt is A Risk, Not a Strategy

While South African law recognises prescription of debt, treating it as a way out of financial obligations is dangerous. The real purpose of prescription is to prevent creditors from sitting on their rights indefinitely, not to offer debtors a shortcut.

Relying on prescription as a “strategy” has serious downsides:

• Financial instability continues. Even if a debt prescribes, collectors may still contact you, and the stress of unpaid obligations lingers.
• Risk of revival. One acknowledgement or small payment can restart the prescription clock, pulling you back into full liability.
• Creditworthiness suffers. Prescribed debts may still leave a mark on your financial record until formally challenged, making it harder to access new credit.
• Lost opportunities for resolution. Negotiating a payment plan, consolidating accounts, or seeking legal guidance to manage debt preserves relationships with creditors and clears the way for long-term stability.

The healthier course is to address debt directly. Where repayment feels impossible, early engagement with creditors — or seeking legal advice on restructuring and settlement — can prevent matters from spiralling into prescription and litigation.

Prescription is a legal defence, not a financial plan. Avoiding debt may buy time, but managing it responsibly restores control.

What Are the Disadvantages of Prescribed Debt?

When a debt prescribes, it may seem like the problem has gone away. In truth, prescription creates a new set of difficulties for both debtors and creditors.

For debtors:

• Lingering financial strain: Even though a prescribed debt cannot be enforced in court, collectors often continue to make contact. The stress and uncertainty can last for years.
• Damaged creditworthiness: Credit bureaus should remove prescribed debt once challenged, but listings often remain. This limits access to credit, finance, and sometimes even employment.
• Risk of revival: A single payment or acknowledgement of the debt restarts the prescription period. Many consumers fall into this trap and suddenly find themselves liable again.

For creditors:

• Irrecoverable losses: Once a debt prescribes, the courts will not assist. Businesses absorb the loss, which impacts cash flow and profitability.
• Erosion of business discipline: Allowing accounts to prescribe encourages a culture of delayed payment among clients.
• Higher collection costs: Chasing old debts often becomes more expensive than the amount eventually recovered, if anything at all.

The bigger picture:

Prescription is designed to bring closure, not to reward avoidance or delay. For debtors, it is a fragile shield that offers little peace of mind. For creditors, it is a stark reminder that inaction is costly. Both sides are better served by acting early — whether that means negotiating repayment, restructuring, or initiating legal enforcement before time runs out.

VDM Attorneys – Debt Collection and Prescribed Debt in South Africa

Prescription is one of the most misunderstood aspects of debt law. For creditors, it represents the point at which valuable claims are lost forever. For debtors, it offers protection, but with significant risks and long-term consequences. Either way, it is a turning point that requires careful legal guidance.

Contact us.