The basis for the allocation of the surplus cash, which becomes

The basis for the allocation of the surplus cash, which becomes available when an agreement is paid off, to the remaining creditors.

NDRC Practice NoteLast reviewed 2026-04

What this means in practice

As shorter-term debts settle, the freed cash is reallocated across the remaining creditors under the same methodology used at the start. The system recalculates the schedule automatically so the consumer does not pay more than the original affordability amount.

Where it goes wrong

A common dispute is the consumer expecting the freed cash to reduce the monthly payment rather than accelerate other accounts. The proposal narrative should set this expectation in writing at the outset.

Drawn from NDRC's active case work. For your situation, see our debt counselling overview.

Cite this clause

National Credit Regulator. (2015). Annexure C — Minimum Debt Counselling System Requirements, clause 2.5.6: The basis for the allocation of the surplus cash, which becomes. Guideline 001/2015 (Debt Review Task Team Agreements 2010), p. 58.