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Debt Consolidation | The best Debt Consolidation Loans in South Africa
Debt Consolidation Loans, Debt, Loans
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Debt Consolidation Loans

A debt consolidation loan is one of South Africa's most requested debt solutions to provide financial relief

Every day, many South Africans are taking out many loans with different terms, interest rates and instalments. It is becoming increasingly complicated to keep track of and manage all the accounts one needs to repay at the end of the month. This is where we come in. With a debt consolidation loan, you have the peace of mind that one simple and easy payment takes care of all your outstanding financial obligations.

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Brief Overview

A debt consolidation loan is one of South Africa’s most commonly requested debt solutions to provide financial relief. Essentially, it is one large loan, with a lower interest rate over an extended period of time, that is used to pay off several smaller loans with higher interest rates – thereby reducing your overall monthly debt repayment. To better illustrate the concept, below is a list of loans and their respective interest rates and instalments:

             

*We have used some credit providers below just to further emphasise the point; this is not an actual reflection of credit agreements provided by the credit providers.

(Please note: mobile table makes use of horizontal scrolling functionality for smaller display screens.) 

Loan Type Term Outstanding Amount Interest Installment
Credit Card 12 months R16,000.00 20% R2,100.00
Retail Store Card 6 months R4,500.00 30% R899.00
Unsecured Loan 1 24 months R30,000.00 32% R2,100.00
Unsecured Loan 2 18 months R21,000.00 28% R2,200.00
Payday Loan Next Payday R3000.00 60% R4800
  TOTAL R75,500.00 TOTAL R12,099.00

As you can see, after all the loans and their respective instalments have been accumulated, the total amounts are quite substantial and in most cases unaffordable! Through the use of a debt consolidation calculator, we have provided information regarding what terms, interest rates and instalments one can expect to receive.

Workable Example

Loan Type  Duration  Interest
Consolidation Loan 60 months R74500.00 23% R2600.00
TOTAL R75,500.00 TOTAL R2600.00
 *calculation does not include monthly service fee.

Debt Consolidation Statistics

50%

Improvements in your cash flow

44.9%

South African’s described as over indebted

75%

Average South Africans’ salary allocated to debt each month

86%

Working South Africans that have made use of debt in the last 12 months

The overall total monthly obligation has gone down from R12,099.00 to R2,600.00.

This leaves the consumer with a significant improvement in their cash flow. Each month the consumer will have an extra R9,499.00 in their budget. For someone who is earning between R15,000.00 to R25,000.00 per month, this will leave the client with room to once again live with sufficient disposable income.

What are the steps you need to take to apply?

Just fill in the required contact details, and one of our financial consultants will contact you to discuss the details. We will then run through an assessment with you. Afterwards, with your permission, we will then pull up your credit record. This will enable us to see what loans you have outstanding and to determine the amount of your loan.

Secondly, we will run through your income as well as your living expenses to ensure that you can afford to make your monthly repayments.

If you have successfully met the criteria, we will forward your application to our trusted partners. They will then contact you – please ensure you have provided us with the correct contact details. At this stage, they will request a copy of the necessary documentation, namely a copy of your green barcoded ID,  a 3 month bank statement, as well a copy of your payslip. We will require 3 payslips if you have a variable income, such as if you are earning overtime or commission.

If you would like more information, please contact us on the details below. Our experienced financial consultants are competent and knowledgeable with regards to all matters concerning debt. If you are currently experiencing difficulty making payments and you are not sure which debt product is going to best suit your needs or if you are currently having a dispute and need clarity on any debt-related matter, give us a call. We have a debt advisory service which specialises in this area.

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