Determination of Reasonable Living Expenses

Minimum Amount of Nett Income Available for Debt Repayments Consumers who apply for debt review are often reluctant to reduce their lifestyle resulting in a small unrealistic amount being available for debt repayment. The level of over indebtedness (after reckless lending has been ruled out) also has an effect on the amount available for debt repayments. Where this is the case the proposed repayments offered are very low and proposed term is unrealistically long. Important Note: Debt Counsellors should use this guideline to determine the minimum available amount for debt repayment. Consumers should be encouraged by Debt Counsellors to use a higher percentage of after tax income or household income to repay debt.