The purpose of the Affordability Assessment of the consumer
The purpose of the Affordability Assessment of the consumer is important for the followingreasons:
a) In terms of Section 86(6)(a) of the NCA the Debt Counsellor should determine if the consumer appears to be over-indebted.
b) Determine if the consumer seeks a declaration of reckless lending or whether any of the consumer’s credit agreements appear to be reckless. When this assessment is completed, the Debt Counsellor should refer to Section 79 of the NCA to determine whether the consumer is over-indebted, ¹ based on the information available when the determination is made. It is important to highlight that the Debt Counsellor, in terms of Section 79(2), should apply the criteria set out in Section 79(1) as they exist at that point in time.
NDRC Practice NoteLast reviewed 2026-04
The affordability assessment exists to give the magistrate a defensible figure. It is not a negotiation tool with the creditor. The number must withstand scrutiny because the court order will be based on it.
Treating the assessment as a starting bid leads to weak proposals. We calculate the true affordable amount first, then confirm it matches the consumer's actual cash flow over three months of bank statements before submission.
Credit providers will sometimes counter with a higher figure based on gross income. The Annexure B framework is the answer: the rules require working from net income after essentials, not from gross income.
Anchored in National Credit Act s 79(1): a consumer is over-indebted if the preponderance of available information shows they will be unable to satisfy obligations in a timely manner.
Drawn from NDRC's active case work. For your situation, see our debt counselling overview.
Cite this clause
National Credit Regulator. (2015). Annexure B — Debt Review Assessment Guidelines, clause 1.1: The purpose of the Affordability Assessment of the consumer. Guideline 001/2015 (Debt Review Task Team Agreements 2010), p. 26.