Just wanted to remind you that it's best not to pay prescribed debt. Let's chat about the consequences and explore some alternatives together, shall we?

Are you struggling with prescribed debt? Don't worry, you're not alone. Prescribed debt is a term used to describe a debt that is no longer legally enforceable due to the passage of time. While it may seem like a relief to be free from the legal obligation to repay this debt, there are still consequences to consider before making the decision not to pay

It's important to understand the potential impact on your credit score, the potential for legal action, and the ongoing harassment from debt collectors. But don't worry, there are alternatives to consider before making the decision not to pay.

One alternative is to negotiate a settlement with the creditor or debt collector. This can involve paying a portion of the debt in exchange for the creditor agreeing to stop legal action and reporting the debt as settled to the credit bureaus. Another alternative is to work with a debt management program. These organizations can help you create a budget and develop a plan to pay off your debts. They can also negotiate with creditors on your behalf to reduce interest rates and monthly payments. Finally, you may want to consider filing for bankruptcy as a way to discharge prescribed debt. While this can have a significant impact on your credit score, it can also provide a fresh start and relief from the burden of overwhelming debt.

Before the amendments of the National Credit Act, it was common for consumers to be chased for prescribed debt. However, the NCA amendments that came into effect in March 2015 declared the collection of prescribed debt to be illegal. So, if you are contacted for old debt, take down the details of who is calling and which company they represent. If your debt is prescribed, you need to report them to the NCR on 0860 627 627.

Remember, it's important to take control of your financial situation. You're not alone, and there are options available to help you manage your prescribed debt.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.