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    1. Home
    2. Debt Counselling
    3. Official Guide
    4. Annexure B
    5. 2.1 Elegibility to apply for debt counselling
    Annexure B
    • 1.1The purpose of the Affordability Assessment of the consumer
    • 1.2When the determination in terms of Section
    • 1.3This assessment of the consumer’s financial position
    • 1.4It is therefore required that the affordability assessment
    • 1.5Before a repayment proposal can be completed, an Affordability
    • 2.1Elegibility to apply for debt counselling
    • 2.2Marital Status
    • 2.3To make sure that not all debt
    • 2.4Temporary Loss of Income
    • 3Determination of Gross Income
    • 3.1The Debt Counsellor
    • 3.1.1If the consumer
    • 3.1.2If the consumer
    • 3.1.3In some cases consumers
    • 3.1.4In some cases consumers
    • 3.1.5Should the proceeds be less than the settlement amount
    • 3.1.6In the case of a second home, investment properties or holiday
    • 3.1.7Vehicles not used by the consumer or his or her dependants (i
    • 3.1.8In the case where the consumer
    • 3.2Short Term insurance on assets financed
    • 3.3Joint Bonds Where the consumer who applies
    • 3.4Reckless Lending
    • 4Determination of Nett Income
    • 4.1On making an effective assessment
    • 4.2The consumer(s)
    • 4.3Gross pay
    • 4.4Deductions for irregular income
    • 4.5Statutory deductions or compulsory deductions
    • 4.6Employer deductions
    • 4.7Use the following guidelines in respect of other income
    • 5Determination of Reasonable Living Expenses
    • 5.1The purpose of setting minimum criteria
    • 5.2The proposed guidelines in the table below take into account
    • 5.3Spending Guidelines
    • 6Determination of Available Income
    • 7.1Required Expenses
    • 7.1.1Rental, where no bond
    • 7.1.2Debt Counsellors could ask the following questions
    • 7.1.3Groceries (food, toiletries, cleaning materials) - groceries
    • 7.1.4Water & Lights (if not part of rental)
    • 7.1.5Rates & Taxes (if consumer
    • 7.1.6Body corporate levies
    • 7.1.7Domestic workers depending on circumstances, e
    • 7.1.8Education
    • 7.1.9Consumers may apply for subsidised school fees
    • 7.1.10Existing tertiary education
    • 7.1.11Transport (public transport and/or reasonable running expenses
    • 7.1.12Telkom phone or cellular phones or internet access within
    • 7.1.13Multiple cellular phones
    • 7.1.14Encourage consumer to set limits on cellular phone contracts
    • 7.1.15Maintenance that should be paid
    • 7.1.16Utilities but encourage the consumer to reduce usage where usage
    • 7.1.17Clothing and shoes within reason, higher amount for growing
    • 7.1.18Chronic medication (obtain proof that not covered by medical aid
    • 7.1.19Support of relatives with valid reasons
    • 7.1.20Financial Services - Debt Counsellors
    • 7.1.21Medical Aid - the consumer
    • 7.1.22Life Assurance
    • 7.1.23Credit Life - money that a consumer pays to an insurance company
    • 7.1.24Insurance - money paid to an insurance company to protect
    • 7.1.25Anything else that can be regarded as required
    • 7.2Non-Required Expenses
    • 7.2.1Domestic worker/s (unless
    • 7.2.2Garden services
    • 7.2.3Alcoholic beverages
    • 7.2.4Tobacco/cigarettes
    • 7.2.5Entertainment
    • 7.2.6DSTV or MNet - consider downscaling at the end of the contract
    • 7.2.7Recreation / club memberships
    • 7.2.8Children’s pocket money
    • 7.2.9Tithes / donations
    • 7.2.10Cosmetic services / beautician / pampering sessions
    • 7.2.11Some allowance
    • 7.3Luxurious Items
    • 7.3.1Multiple properties
    • 7.3.2If a property
    • 7.3.3Boat, Jet Ski, sun bed and other “toy” items
    • 7.3.4Luxury vehicles used as the only means of transport by consumer
    • 7.3.5Luxury vehicles not used by the consumer on a daily basis
    • 7.3.6Holiday clubs
    • 7.3.7Gambling
    • 8Restructuring Proposal
    • 8.1Establish whether there
    • 8.2Any available cash resources, bonuses or thirteenth cheques
    • 8.3Consider to downsize from an expensive luxurious vehicle
    • 8.4If a fixed property (house)
    • 8.5Consider whether the consumer
    • 8.6Make sure that all expenditure
    • 8.7If revised living expenses exceed income then the consumer
    • 8.8If the consumer’s revised living expenses
    • 9Broad Guideline forSpending Patterns
    • 10Annual Review
    • 11Recognising and Dealing with Addictive Behaviours
    • 12Conclusion Consumers are over-indebted if too much
    • 13Annexure b1 – Affordability Assessment Process Steps
    • 14Annexure b2 – Affordability Assessment Check List
    • 14.1Affordability Assessment
    • 14.2Interview with Consumer
    • 14.3Verify Consumer Details
    • 14.4Verify Debt
    • 14.5Verify Income
    • 14.6Check for Reckless Lending
    • 14.7Review Asset Statement
    • 14.8Revise Budget
    • 14.9Verify Short Term Insurance Required by Debt Agreements
    • 14.10Affordability Amount
    • 16.1Check that the rates applicable to the debt
    • 16.2Note that contracts entered into before June
    • 16.3The possible reckless debt indicator needs to be completed
    • 16.4Where the monthly debt repayments exceed the maximums, as per
    • 16.5Reckless Lending Indicator
    • 16.6When the Reckless Debt Indicator
    Annexure B
    2.1
    Annexure B
    p. 28

    Elegibility to apply for debt counselling

      Elegibility to apply for debt counselling A consumer as defined in the NCA may apply for Debt Counselling in terms of Section 86 of the NCA. When an application from a consumer is received the Debt Counsellor should consider the following; Section 3(g) of the NCA states the following: “providing for a consistent and harmonized system of debt restructuring, enforcement and judgement, which places priority on the eventual satisfaction of all responsible consumers obligations under credit agreements” Over indebtness relates to existing inabilities to satisfy obligations and future inability. This means that Debt Counsellors should access the ability to repay the debt from future income. Where consumers have no income or no prospect of receiving income to repay their debt, Debt Counsellors should refrain from accepting such an application. This assessment is made by Debt Counsellors in terms of Section 79(1) as the information exists at that point in time. Some consumers might apply for Debt Counselling because of retrenchment or temporally reduction in income and those consumers should not be excluded. In such cases the Debt Counsellor might recommend postponement of payments during a specified period to a Magistrate Court as set out in Section 86 and 87 of the NCA. The important principal to be considered is the ability of the consumer to resume payments in the near future. In the retrenchment example the consumer should find alternative employment in a reasonable period. In practical terms the following issues should be considered at the point of application:

    • If the consumer has no income or no prospect of income in the future the applications cannot be accepted;
    • The marital status of the consumer should be verified as set out below before the application is accepted;
    • Where the Debt Counsellor is aware of previous legal action stipulated in Section 86(2) of the NCA only that particular debt cannot be included in the application. This means that the balance of the debt should be included in the application;
    • The Debt Counsellor must assess the situation and submit his or her recommendation to a Magistrate Court who must conduct a hearing as per Section 87 of the NCA. The matter should be referred to a Magistrate Court before the expiry of the 60 days in order to protect the client.
    • Any credit life insurance which makes provision for retrenchment cover should be considered as well and could well be a remedy to reduce debt at a future point in time. In most cases it will be difficult to determine if full retrenchment cover is available at point of application. Debt Counsellors are encouraged to check for relevant cover and to verify this with Credit Providers to determine the impact if possible in the debt situation of the consumer.
    • It is also recommended that the Debt Counsellor check for the availability of assets that can be used to redeem debt as described in more detail below at application stage.

    NDRC Practice NoteLast reviewed 2026-04

    Legal context

    Eligibility flows from NCA s 86(1): any consumer who is over-indebted may apply. Practically, applicants must be natural persons (not juristic), and not already subject to a sequestration or administration order.

    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 2.1: Elegibility to apply for debt counselling. Guideline 001/2015 (Debt Review Task Team Agreements 2010), p. 28.

    Related clauses

    2.3
    Annexure B
    To make sure that not all debt
    2.2
    Annexure B
    Marital Status
    2.3
    Annexure B
    To make sure that not all debt
    2.4
    Annexure B
    Temporary Loss of Income
    Previous
    1.5 Before a repayment proposal can be completed, an Affordability
    Next
    2.2 Marital Status
    Learn more about Debt Counselling

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    Based on NCR Guideline 001/2015, p. 28. For NDRC's interpretation and application, see our debt counselling overview. Download original PDF.
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    Principal Debt Counsellor

    Sibabalwe Samora Dakana

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    The National Debt Review Center (NDRC) is a registered debt counselling practice with the National Credit Regulator (NCR Registration: NCRDC3106). Our services are conducted in strict accordance with the National Credit Act 34 of 2005 and NCR Circular 09 of 2025 regarding DHS status updates.

    Important: Debt review is a regulated legal process. While under debt review, you will be unable to obtain further credit until a Clearance Certificate (Form 19) is issued or a court order declares you no longer over-indebted.

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