Guys guys come this side……

One of the biggest consequences of prescribed debt is the negative impact it can have on your credit score. Even though the debt is no longer legally enforceable, it can still be reported to the credit bureaus and negatively impact your credit score.

As long as you not paying your debts on time thats a negative impact already

There are situations where paying your debt is materially impossible because you’ve lost your source or sources of income. But in general people should always honour their debts or not get into them at all.

These guys goes to creditors and buy your debts if you can't pay, and call you trying to recoup their money back with interests, but they will sell it to another debt collector after 3 years if they can't trace you, kanjalo kanjalo.

This is misleading. Prescription is be interrupted within the 3 yr period by service on you of a summons/application. It’s not the nonpayment that causes the debt to be extinguished. It is the failure of the bank to sue within the 3yr period.

@CapitecBankSA hope this sinks in my friend

All debts? Even for housing finance cases?

I’ve been retrenched before & couldn’t pay for a while so this was an option but my biggest goal was to be debt free with good credit score and thankfully I came right. Avoid anything that will damage your credit

Also note that you break the prescription if you acknowledge the debt. Please give people all the information not a one sided incomplete story.

There’s so much more to the Prescription Act. Service of a summons & acknowledging the debt interrupts prescription. The sheriff doesn’t even need to personally serve you with the summons. Don’t be misinformed, you’ll ruin your credit record!