What does it mean to be over-indebted?

You are considered over-indebted when your current debt exceeds your current income after all your essential living expenses have been paid. In simple terms, you cannot afford to pay all your bills each month.

Under the National Credit Act, over-indebtedness is the key qualifying criterion for debt counselling. A debt counsellor will conduct a formal assessment to determine whether you legally qualify as over-indebted.