When the determination in terms of Section
- The settlement value of the credit agreement that it guarantees, if the guarantor has been called upon to honour that guarantee; or
- The settlement value of the credit agreement that it guarantees, discounted by a prescribed factor. In addition to Section 79 of the NCA the Debt Counsellor should consider the guidelines set out in Regulation 24(7) of the NCA² _____________________ ¹ A consumer is over-indebted if the consumer is or will be unable to satisfy in a timely manner all the obligations under all the credit agreements based on the consumer’s current means, prospects and obligations as well as probable propensity to satisfy on time all his or her obligations based on the payment history of that consumer. ² Regulation 24(7):
When the determination in terms of Section 79 is made, the Debt Counsellors should take into account Section 79(3) which provides that the value of:
a) Any credit facility is the settlement value at the time under the credit agreement; and
b) Any credit guarantee is:
a) A consumer is over-indebted if his/her total monthly debt repayments exceed the balance deriving by deducting his/her living expenses from his/ her income;
b) Nett income is calculated by deducting from the gross income, statutory deductions and other deductions that are made as a condition of employment;
c) Minimum living expenses, adjusted by the Debt Counsellor with reference to the guidelines issued by the National Credit Regulator.
NDRC Practice NoteLast reviewed 2026-04
Once the debt counsellor confirms over-indebtedness under NCA s 79, a restructuring proposal must follow. The proposal is the operational answer to the legal finding and must be supported by the affordability worksheet.
Statutory anchor: NCA s 86(7)(c) read with s 79 (over-indebtedness test) and Regulation 24(7).
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 1.2: When the determination in terms of Section. Guideline 001/2015 (Debt Review Task Team Agreements 2010), p. 26.