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eezie financial solutions. Debt solutions

About Us

Over 10 million South Africans face the challenge of impaired credit records, a situation that often results from being over-indebted and struggling to manage personal finances effectively. Recognizing this widespread issue, Eezie Financial Solutions (EFS) was established to address a crucial gap in the market. EFS is dedicated to supporting these individuals by providing essential financial education and assistance.

The primary mission of Eezie Financial Solutions is to guide clients towards financial stability and restored credit health. To achieve this, EFS collaborates directly with creditors on behalf of their clients, negotiating more manageable payment terms. These agreements aim to decrease clients' monthly financial obligations, thereby increasing their cash flow. By reducing the immediate financial pressure, EFS helps clients regain control over their finances and work towards long-term financial wellness.

EFS also offers ongoing support and resources to ensure clients not only overcome their current financial difficulties but also build a sustainable financial future. Through personalized assistance and strategic financial planning, Eezie Financial Solutions empowers clients to break the cycle of debt and improve their overall financial standing.


What is Debt Review


Debt review, also known as debt counselling, is a financial solution specifically designed for South African consumers who find themselves over-indebted and struggling to manage their financial obligations. This process offers a structured pathway for individuals who are unable to meet their debt repayments according to the original terms agreed upon with their creditors.

Over-indebtedness occurs when a consumer's financial commitments exceed their ability to make timely payments. This can happen due to various reasons such as unexpected expenses, loss of income, or poor financial management. When consumers are unable to pay their debts on time, it can lead to severe consequences, including legal action and further financial strain.

To address this issue, the National Credit Act (NCA) of 2005 introduced Section 86, which established the formal debt rehabilitation program known as debt review in 2007. The primary goal of this program is to protect consumers from being forced into personal administration, a legal status that can have long-lasting negative effects on an individual’s financial life. By providing an alternative to personal administration, debt review offers a more manageable and structured way for consumers to regain control over their finances.

Under the debt review process, Debt Counselors (DCs) play a critical role in assisting clients. These professionals are responsible for assessing the client's financial situation, negotiating with creditors to restructure the debt, and ensuring that the consumer can make sustainable payments. The process is governed by strict and ethical guidelines set forth in the NCA, ensuring that Debt Counselors provide responsible and fair assistance to those seeking financial recovery. The ultimate aim is to help consumers achieve financial stability while safeguarding their rights and dignity.


WHO QUALIFIES FOR DEBT REVIEW? 


Any South African credit user can apply for debt review, but they may not qualify for it.

To qualify for the process, they will need to meet the requirements set up by the National Credit Act (NCA). Requirements include:

1. Consumer must be a South African citizen. Debt review was introduced by the NCA to help South African credit users get out of debt. Therefore, they must have a South African ID or passport to qualify.  
 
2. Consumer must be over-indebted. Debt Review can only help people who are over-indebted. If they are not over-indebted but they are struggling to make ends meet, we do offer a financial wellness programme.

 3. Consumer must be unable to meet all their financial obligations on time. If they are unable to meet their obligations, debt review is the right option for them. Their debt counsellor will negotiate lower interest rates and extended payment terms with their creditors so that they can afford to pay back their debt and cover everyday expenses.   

  4. The consumer or spouse must have a steady income. Unfortunately, if neither the client nor their spouse is employed, they will not qualify for debt review. In order to qualify, they have to have a steady monthly income so that they can make a reasonable offer to their credit providers.  
• Consumers married in Community of property. If a consumer is married in community of property, both partners would have to apply for debt counselling and follow the process jointly even if only one of the spouses is over-indebted. In terms of current legislation if consumers are to get married under community of property they will be categorized as having one joint estate. Once the debt review process has started, both partners will be both responsible for repaying the monthly instalment.



ADVANTAGES OF DEBT REVIEW

1. One fixed monthly payment

The more payments a consumer has due every month, the easier it is for them to accidentally miss a payment. Missing a single payment can affect their credit score and result in late payment fees.

When a consumer goes under debt review, a DC will simplify the process for them. They only have one fixed lower repayment per month to pay towards their debt.  

2. Reduced monthly payments  

The main aim of debt counselling is to help consumers pay off their debt, while still allowing them to have enough money to cover their other living expenses

A DC will reduce their monthly repayments towards their debt by extending their repayment period. Therefore, by paying a decreased amount every month, they can afford to pay off their debt.  

Example of monthly reduction: 

Type of Debt Calculated Debt After Debt Review Reduction in Payment 
Property/Bond R 7 000.00 R 5 530.00 R 1 470.00 21% 
Vehicle Finance R 4 000.00 R 2 800.00 R 1 200.00 30% 
Unsecured Debt
(Credit cards, Loans, etc.)
R 10 000.00 R 4 000.00 R 6 000.00 60% 
Total R 21 000.00 R 12 330.00 R 8 670.00 41% 


3.   Legal Protection

Once a client is under debt review they will not have to worry about about any legal letters or phone calls from creditors. Their assets are legally protected by the NCA from creditors. This means that creditors may not hassle them, their DC will take over all communication with creditors on their behalf.

4. No blacklisting

While under debt review:

• Credit bureaus cannot blacklist a consumer

• Judgements cannot be made against them

• They cannot be listed as a “slow” payer as they are legally protected by the NCA.

5. Take a credit “break”

Once they are under debt review, their credit profile is flagged at the credit bureaus.

This means they cannot take out any debt until the debt review process is complete. This is a great way to stay clear of incurring more debt and start focusing on a debt-free future.

Once they have settled all their debts, they will receive a clearance certificate and the credit bureau will be notified to remove the flagged listing.

6. Debt counselling as an alternative to sequestration and administration.

One of the most hidden benefits of debt counselling, is that is is a healthy alternative to sequestration and administration.

Sequestration and administration are expensive and can take up to 10 years to get rehabilitated.

The NCA implemented debt counselling as an alternative to sequestration and administration. This new law enabled over-indebted consumers to catch up on overdue debts and still manage to cater for living expenses cost-effectively.

Most over-indebted South Africans can reap all the advantages of debt counselling as the debt review process is simple, easy, legal, and successful. A debt counsellor will negotiate with consumer’s creditors on their behalf and will avoid the following from happening:

• Administration

• Forfeiture

• Sequestration

• Vehicle repossessions

• And/or garnish orders attached to your salary each month.

• A debt counsellor will analyse consumers’ finances and check where they are having debt issues. After analysing their finances the debt counsellor will know how to generate disposable income to pay off debts.


7. The process of debt counselling is guaranteed.

Debt counselling guarantees that a consumer will cost effectively settle their debt, if they adhere to the agreed upon restructured amount.

If any payments are missed, credit providers will terminate the debt counselling process. Credit providers are obligated to take part in the debt counselling process ensuring that their debt counsellor can restructure their debt.


8. Protection from Repossession.

If you are behind on your payments for vehicle finance or home loans, debt counselling will legally help keep consumers most prized assets secure from repossession.

 

Contact Us

Reduce your monthly installment and interest rate by up to 60%

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Reduce your monthly installment and interest rate by up to 60%

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Phone: 071 463 5351
Email: info@eeziefinancialsolutions.co.za

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