Spending Guidelines

Spending Guidelines This spending guideline is based on after tax income, before any other deductions, of the applicant(s) subject to Note 1, 2 and 3 below for specific application to the consumer’s position at that point in time. Percentage of household income to be made available as a minimum for After Tax Income repayment of debt R 0 – R 2 000 23% to 45% R 2 001 – R 5 000 32% to 47% R 5001 – R 10 000 35% to 49% R 10 001 – R 20 000 37% to 51% R 20 001 – R 40 000 40% to 53% R 40 001 – R 60 000 45% to 55% R 60 0001 + 45% to 58% Notes:

a) Note 1: This is a general guideline for the use of Debt Counsellors. It is accepted that there will be individual cases where this guideline will not be applicable due to special circumstances which can be motivated by the Debt Counsellor.

b) Note 2: This guideline sets out the minimum amount to be used. Debt Counsellors should wherever possible increase the amount available based on the financial assessment completed for the consumer, which should include a reduction in financial lifestyle.

c) Note 3: This guideline is applicable to the total household income as defined in section 2.3 of the guideline.

d) Note 4: The abovementioned percentages include a provision for a monthly amount available for debt repayment. Consumers should be encouraged to deposit this money into a savings account for this purpose. Where applicable the Debt Counsellor should reduce the percentage allocated to the emergency fund.