What Happens If I Stop Paying My Debt in South Africa?

The Consumer Guide · Updated 9 November 2026 · 5 min read

What happens in the first month or two?

When you miss a payment, the account goes into arrears. That simply means you owe money that was due and not paid. Here is what usually follows:

• Late fees and interest. Interest keeps running on the full balance, and some creditors add a late fee.
• Calls, SMSes and emails. The creditor's collections team will try to reach you. These calls can be frequent and stressful.
• Your credit record changes. Creditors report your payment history to credit bureaus every month. Missed payments show up and your credit score drops.

At this stage, the problem is still small enough to fix. A phone call to the creditor, or getting advice, can stop it from going further.

When will I get a letter of demand?

If you stay behind, the creditor will send you a formal letter. This is often called a Section 129 letter, after the section of the National Credit Act that requires it.

This letter tells you that you're in default. It also tells you that you can:

• Pay what's overdue.
• Go to a debt counsellor.
• Try to resolve the matter with the creditor or another dispute body.

The creditor must give you at least 10 business days to respond before they can go to court. Many people throw this letter away, or never see it because it was sent to an old address. Make sure your creditors have your current details.

Before a creditor lists you as a bad payer with a credit bureau, they must also give you notice, normally 20 business days.

What is a summons and what should I do?

If nothing changes, the creditor can hand the account to its lawyers. They will ask the court to issue a summons, which is delivered to you by the sheriff.

A summons is an official court document. It says the creditor is suing you for the money you owe. Never ignore a summons. It gives you a short time to respond. If you do nothing, the court can make a decision without hearing your side. This is called a default judgment.

If you receive a summons, get advice straight away from a lawyer, a legal aid office or a debt counsellor.

What happens after a court judgment?

A judgment is a court order that says you must pay the debt. It's also listed on your credit record, which makes it hard to get credit, rent a home or sometimes even get certain jobs.

With a judgment, the creditor can use the law to collect the money. This can include:

• A garnishee order (also called an emoluments attachment order). Your employer is ordered to pay part of your salary straight to the creditor every month. Your employer will know about your debt.
• Attachment of property. The sheriff can take and sell your belongings to pay the debt.
• Repossession. If the debt is a car or home loan, the creditor can take back the car or ask the court to sell the house.

Legal costs are often added to what you owe, so the debt grows even more.

Will my debt just go away if I ignore it?

Almost never. In South Africa, most ordinary debts can prescribe (expire) after three years. But this only happens if the creditor has taken no legal action and you have not paid or admitted the debt in that time. Even a small payment or a written "yes, I owe this" can restart the clock.

A debt with a court judgment lasts much longer. Prescription is a legal defence, not a plan for getting out of debt.

How can I stop it from getting this far?

The earlier you act, the more options you have:

• Talk to the creditor as soon as you know you'll miss a payment. Ask for a short-term arrangement and get it in writing.
• Cut back on spending where you can, and stop using credit.
• Consider debt review. When you apply for debt review, your creditors are notified. Once that happens, they can't start legal action on the debts included in the process while it's under way. If a creditor has already started legal action on an account, that account may be left out, which is another reason to act early.