Debt Settlement Negotiation


Old outstanding debts can often become inflated as legal fees, collection fees, and interest are added. Such fees are charged on an ongoing basis, which adds to the total debt outstanding as time goes by. Often clients are unable to service these rising debts.

You may therefore want to speak to us about negotiating reasonable final settlement amounts for your debts. We can also negotiate settlement terms, which will allow clients to restructure their debts according to their own affordability. Whichever option you choose, speak to us for assistance. We have a wealth of expertise in facilitating debt negotiations and are often able to successfully negotiate reduced settlement amounts for our clients.

Caution: When paying old debt, be wary of reviving liability in the event of the debt having prescribed. You are not legally liable for prescribed debt. In terms of the Prescription Act 68 of 1969 debt prescribes in the following instances:

  • You have not made any payment in respect of the accounts in the last three years and,
  • You have not signed any acknowledgement of debt and,
  • The creditor you owe has failed to take judgment against you for the recovery of the debt.

In the event that the debt has not prescribed and you would like to repay the debt, you essentially have the following options:

  • You settle the debt for the full outstanding balance (the outstanding balance applicable at the debt you settle the account, together with legal costs and interest) or
  • You settle the debt by way of a compromised settlement amount that is negotiated by one of our debt negotiators (the compromised settlement amount is often significantly less than the outstanding balance), and save! This option may however take slightly longer than the first option but could result in you significantly “saving” when settling your debt.

Debt Settlement Query