Do I qualify for Debt Review?

What does it mean to be “over-indebted”?

That’s a good question and a term you need to understand.

To be over-indebted means to owe more money than you can afford to pay back. But in the case of the National Credit Act there is a clear definition and formula used to qualify potential candidates.

In short, a consumer is over-indebted when he/she does not have the ability to meet all his/her financial commitments at the end of the month.

If you are over-indebted, let us give you a call & run you through the benefits of Debt Review

Why not start by using our calculator

The National Credit Act is very clear about who can qualify for Debt Review. If you are behind with your debt repayments, but you are still able to make a few changes to your personal budget and your spending habits, you might not meet the over-indebtedness requirements to enter the process and get some relief.

The Debt Review process is not meant to assist people who can make some lifestyle changes and free up money to service their debt. The Debt Review process is for people who are in real trouble!

The calculation is based on a formula and the following 10 steps. We’ve jotted them down so you can get an idea of the flow and how the calculation works.

To make things easier we’ve developed a quick calculator you can use to give you an idea of your personal situation. Visit our calculator here.

The steps involved in working out if you are over-indebted and qualify for the Debt Review process.

We start with your gross income per month
From that we minus any statutory deductions like PAYE and UIF
Then we minus any conditions of your employment like your pension fund and medical aid contributions
That leaves us with a nett income
Then we add any additional income you might earn like rental income etc
That gives us your new nett income figure
From that we minus all your living expenses
Then we minus all your monthly debt obligations
That leaves us with a final balance
If you are in a positive balance you are not over-indebted. If you are in a minus balance, then you are over-indebted.

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Make sure you visit our calculator.

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