Affordability Amount
Affordability Amount
a) Provide Consumer with monthly budget and monthly emergency amount included in the budget
b) Discuss repayment plan
c) Provide Debit Order cancellation and Stop Payment instructions
d) Confirm acceptance of budget and fees
e) Confirm Short Term Insurance in place where required
f) Confirm to proceed
g) Explain PDA and complete mandates
h) Output required i. Monthly Budget for 12 months provided to client ii. Receipt for debt review application provided to client iii. Fee structure details discussed with client iv. Debit Order cancellation and Stop Payment instructions signed by client and copy made for own records v. Repayment schedule and amount details provided to client vi. Motivation for debt review documented for future use vii. NCR Debt Help Loaded No List all Debts in After Tax Income Monthly Debt Interest Initia- Debt date order from at time of Debt Repayment Rate tion repayment first in to last in5 taken up6 Amount7 Charged8 Fee as percentage of After tax income10 Possible reckless Debt Indicator11 5 All debts since inception should be listed. This information could be obtained from the client and Credit Bureau. Credit agreements entered into prior to 1 June 2007 cannot be reckless as defined in the NCA. 6 The after tax income of the consumer at application or debt taken up should be included. If married in COP then combined after tax income should be included. Remember to get salary slips (to the extent possible) and bank statements covering the relevant periods to obtain the correct income when the application was approved. 7 The monthly amount due for payment of the debt should be included. 8 Include the rate charged by the Credit Provider. Remember rates and fees prior to 1 June 2007 are not subject to NCA limitation. 9 Insert type of debt: A: Mortgage, B: Credit Facility, C: Unsecured Credit Facility, D: Short Term Debt, E: Other Debt or F: Incidental Debt. 10 Calculate monthly debt repayment of all the debt, including previous debt repayments, as a percentage of income after tax. When this per centage exceeds the possible reckless debt indicator, that debt and the debts approved after that point in time, could possibly be reckless unless income has changed dramatically when subsequent applications were made. 11 The possible reckless lending indication does not prove or indicate that a particular loan is reckless. It is an indication for the Debt Counsellor to commence with an investigation of possible reckless lending on the loan indicated. 16. Possible Reckless Lending Indicator Steps
NDRC Practice NoteLast reviewed 2026-04
This is the figure distributed by the PDA each month under the rearrangement order issued in terms of NCA s 87(1)(b)(ii).
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 14.10: Affordability Amount. Guideline 001/2015 (Debt Review Task Team Agreements 2010), p. 50.