What Happens to Unpaid Credit Card Debt After 7 Years?

By Dave Nyam •  Updated: 01/22/24 •  5 min read

Presently, the percentage of credit card arrears in South Africa is pretty high because of most citizens’ ways of living and outlays. However, these dues may also be the most expensive and challenging of any arrears, mainly at elevated interest rates, charges, and fines. If you have a credit card debt, then all unpaid for precisely seven years, you may wonder what will happen to your debt after the seventh year and if there is a legal way to void it. In this writing, we expound on what unsettled credit card arrears mean for the clients, how prescribed arrears may apply to this subject, and what you might do to pay your debt without initiating a cent payment.

- ADVERTISEMENT -

What Occurs To Unsettled Credit Card Debt After 7 Years?

The elements that occur to an uncleared arrears after seven years in South Africa will hang on some facets. It might still be justifiable and collectible, allowing the lender to pursue payments, fix interest and fees, and forward your delinquency to credit agencies. This situation is likely if you’ve made partial payments or have been served with a summons or judgment in the past 7 years. Otherwise, your debt may be prescribed, meaning it’s old and not enforceable by law. In this case, neither your provider nor his collection agency can demand payment nor report your debt to credit bureaus. If you haven’t been making payments in three years – or if you didn’t have any summons or judgment – this may follow. Lastly, writing off your debt is another option, which means the provider stops chasing after payment and creates a void on the debt. It might still market your debt, though, to a collection agency.

When Does Debt Fall Off Your Credit Report?

Your credit report is the history and behavior of your credit, which the provider of credit, such as a bank or lender, uses to calculate your creditworthiness. It is also used by credit bureaus, such as TransUnion, Experian, Compuscan, and XDS, among other listed bureaus, to calculate credit scores.

Your credit report would feature positive and negative credit information related to your credit activity and personal particulars, along with adverse listings, credit accounts, payment history, and credit inquiries. These latter elements denote default or failure regarding respective credit obligations that might impact various constituents of your credit score and future credit access prospects.

However, these listings don’t stay in your report forever. Different retention periods for various types of adverse listings are stipulated by the National Credit Act of 2005 in South Africa:

Most adverse listings can stay on your report for up to five years, some even up to 10 years or longer. However, proactive initiatives such as settling debts, disputing mistakes, or processing rehabilitation might erase these listings, boosting your credit grading and maximizing your odds of receiving loans.

Can Credit Card Dues Be Written Off After Seven Years?

Having unsettled arrears written off after seven years in South Africa rests on whether it’s prescribed. Prescribed debt is old, unenforceable debt. In South Africa, most debts, including those from a credit card, are prescribed if no legal action has taken place or payment has been received for three years. Once prescribed, your provider or collection agency can’t then legally demand payment or report your debt to credit bureaus.

However, prescribed debt isn’t the same as written-off debt. The provider cancels written-off debt, but unless it’s already prescribed, they may sell your debt to a collection agency. Your debt may also be impacting your future credit score and credit access.

Writing off your credit card debt after 7 years means ensuring it is prescribed and not acknowledging or paying anything. If unprescribed, you’re still accountable for it.

How Can You Clear A Credit Card Due Without Paying?

For those with unsettled, un-prescribed, or un-written-off credit arrears, you still need to settle the dues, and your lender or a collection firm may pursue legal action against you. However, if such a case arises, you may consider options to manage your debt:

- ADVERTISEMENT -

Keep Reading

Slice Credit Card: Advantages and Disadvantages

Slice Credit Card: Advantages and Disadvantages

Today we look at a prepaid credit card called Slice with a longer history. We cover how it works and what to expect

How to Check Makro Credit Card Balance

How to Check Makro Credit Card Balance

This is a great chance to learn about the Makro credit card and check your amount, whether you are new to Makro or already use it. 

How to Check If A Credit Card Is Activated

How to Check If A Credit Card Is Activated

This is why we are here to guide you through how to check if your credit card is activated. 

How to Check If Someone Has Opened A Credit Card In Your Name

How to Check If Someone Has Opened A Credit Card In Your Name

This article will give you a better idea of how to spot an account being opened in your name, detect fraud

How Is Credit Card Interest Calculated in South Africa?

How Is Credit Card Interest Calculated in South Africa?

Today we will look deeper into how credit card interest works, and how to make your credit card a tool that works for you, instead. 

How to Increase Your ABSA Credit Card Limit?

How to Increase Your ABSA Credit Card Limit?

oday we will look at how to increase your ABSA credit card limit, and other key information you should know before deciding that a balance increase is right for you.

Can You Purchase V-Bucks Using A Credit Card?

Can You Purchase V-Bucks Using A Credit Card?

The player population must be acquainted with the expertise of making payments for purchasing V-bucks that facilitate customizing their gameplay effectively.

Top 25+ Credit Cards Compared in South Africa

Top 25+ Credit Cards Compared in South Africa

Credit cards in South Africa mean much more than just providing convenience for one's purchases.

Why A Credit Card Disappeared From Online Banking

Why A Credit Card Disappeared From Online Banking

Why A Credit Card Disappeared From Online Banking. The following article will give insight into probable reasons for such a phenomenon.

How to Check My Credit Card Statement Online

How to Check My Credit Card Statement Online

In this guide, we’ll give you details about how to check your credit card statement online. 

Can Someone Check Your Credit Without Permission?

Can Someone Check Your Credit Without Permission?

Can Someone Check Your Credit Without Permission? This paper, therefore, tries to scrutinize the legality of unauthorized credit checks.

How Does A Credit Card Work In South Africa?

How Does A Credit Card Work In South Africa?

Subtleties of credit card use in South Africa so that appropriate decisions can be made and benefits can be taken advantage of.

How to Use a Credit Card to Increase Your Credit Score

How to Use a Credit Card to Increase Your Credit Score

This guide provides measures you can take to ensure effective use of a credit card to increase your credit. 

Can I Get A Credit Card If I Am Under Debt Review?

Can I Get A Credit Card If I Am Under Debt Review?

It comprises an in-depth view of the condition of one's financial assessment by a registered counselo

Credit Card Online Application

Credit Card Online Application

This modern approach opens up a big universe of financial services to humankind. When one is using the online application system