Back to FAQ's

2. The National Credit Act 34 of 2005 makes provision for individuals who are over-indebted to go under the process of debt review, but what does it mean to be over-indebted?
3. This simply means that your monthly expenses and credit payments exceeds your income in a month. To see if you are over indebted do the following:
   • Add up all your net income in a month (this means the money you get cash out in a month)
   • Add up all the expenses you have in a month (for example, school fees, groceries, rent, etc.)
   • Add up all the payments that you have to make to creditors in a month.
4. Now subtract the total of your expenses and credit payments from your net income (1 - 2 - 3), if this amount is negative then you are over-indebted and should apply for debt review as soon as possible, if this amount is positive you are not over-indebted and have nothing to gain from debt review.