It is therefore required that the affordability assessment

It is therefore required that the affordability assessment complies with guidelines set out in this document, which is based on the following broad principles:

a) The financial assessment should take into account all the information available at that point in time;

b) When the assessment is done the maximum amount possible should be made available for debt repayment after provision has been made for an emergency amount;

c) The financial assessment should be reasonable and a sustainable and a living budget should be constructed for the duration of the Debt Counselling term.

d) Debt Counsellors should obtain a Credit Bureau report for the consumer to make sure that all the consumers’ debt obligations are included on application.

e) The Debt Counsellor should check for reckless lending. It is obvious that Credit Providers have an interest in the affordability assessment because this has a direct impact on the proposed repayment plan. It is in the interest of the consumer if the Debt Counsellor explores the possibility of submitting a repayment proposal to Credit Providers in terms of Section 86(7)(a) and in terms of Section 86(7)(c) before submitting a proposal to Court. Where this process is followed, it is more likely that payment proposals will be accepted before the matter is referred to Court. This will not only reduce opposition in court, but it will also speed up the Debt Counselling process and avoid unnecessary legal costs for the consumer and the Credit Provider.