If you feel like you’re stuck between a rock and a hard place, debt consolidation might be the answer you’ve been looking for.

There are ways for one to get debt under control with the help of some of the most amazing lenders and banks in South Africa.

Yes, you can and you will make it through debt. A debt consolidation loan is designed to consolidate all your debt repayments into one easy-to-manage debt repayment.

It does not only make budgeting easier but allows you to save on interest and increase your disposable income. It is also the first step you can take to ultimately become debt-free.

Consolidation is as easy as one two three

When you apply for your debt consolidation loan, you are making the financial decision to gain financial control and repay your debt while making everyday life a little easier. As long as you do not incur more debt, debt consolidation will be able to provide the financial freedom that you are after.

This does not mean that you will not have cash for the month

When you apply for a loan, lenders  will always look at your net income and your monthly expenses. Debt consolidation helps you balance your living costs and debt costs.

If you find yourself drowning in debt and not having enough disposable income, then you’re a good candidate for debt consolidation. You will be gaining a stress-free life!

Saving money on interest and repaying debt faster

You won’t have to wonder how you’re going to pay your loans off and you will not have to stress about multiple debt repayments. You are still repaying all your debt but at a more comfortable pace.

Depending on the types of debt you have consolidated, you might be able to save money on interest and repay your debt quicker than you expected.

It’s simple to apply for a debt consolidation loan

Applying for debt consolidation could not be easier. Simply look for a loan comparison site, compare lenders and choose a lender that works for you. You can now proceed to apply for a debt consolidation loan.

With reliable customer support and convenient to use online loan platforms, there is no need for endless waits on loan approval. Alternatively, for the more traditional, you can apply for a debt consolidation at your local lender or bank.

Tips for applying for debt consolidation 

  • Always begin your journey to debt consolidation by reviewing your budget
  • Ensure debt consolidation is the right option for you
  • Consider the three primary ways to consolidate debt which includes using the equity in your home loan, a personal loan or a credit card
  • Always use a loan comparison site to compare debt consolidation loans
  • Compare interest rates as well as loan APRs which include fees and additional costs
  • Do not apply for more than one loan at a time
  • Always consider early repayment and non-payment penalties 

Get the financial backing you need

If debt has got you needing more money at the end of the month, applying for a debt consolidation loan can see you through. At times, unforeseen circumstances, poor financial planning or unexpected events can let us lose track of our finances but, with a debt consolidation loan, you can get back your financial freedom and peace of mind.

Is debt consolidation the right option for you?

Debt consolidation is not always the best option for all those struggling with debt and cash flow. 

If you have large debts that have long terms or even short-term loans that have fairly short terms, consolidating is not a good option. On the one hand if you have large debts chances are that these debts carry a relatively lower interest rate simply because of their larger loans sums.

On the other hand if you have many short term loans that are due to be paid off in the next few months you will only spend more money in interest by consolidating them and extending the term over which you will settle them.

Debt consolidation is for you if:

  • You're goal is to get out of debt and simplify your finances
  • You're committed to not taking out any more credit
  • The majority of your debt is unsecured 
  • Your budget still allows for repayment of the majority of your loans but you have trouble managing these loans 
  • You have credit card balances, store cards and short term loans you want to consolidate
  • You still have a good or fair credit score
  • You have not been handed over for debt collection 
  • Your debts are unsecured

Documents to have on hand when applying for debt consolidation

  • Green barcoded South African ID or Smart ID 
  • Proof of address
  • In certain cases settlement figures of loans you wish to consolidate 
  • 3 month bank statements (some lenders will require 6 month bank statements)
  • 3 months' payslips

Minimum and maximum debt consolidation loan amounts

There is no set minimum and maximum debt consolidation loan amounts however the maximum would be around R200,000 for a loan term of 7 years. This is the most common maximum personal loan amount among mainstream lenders at the moment. 

It is crucial to keep in mind that while selecting a longer loan term may lower your monthly repayments, you will be paying interest on the loan for a longer period of time and this may make you loan very expensive. 

It is also important to remember that if you are struggling to make your monthly repayment on your debt consolidation loan you must contact your lender. They may be able to restructure you loan and make the repayments more affordable. 

Alternative to debt consolidation

One of your alternative options is to opt for debt counselling. This is a much more serious route to take and is ideal only for those that do not qualify for consolidation

Start today and get your debt sorted so that you can have a better life tomorrow. Consolidation offers you a way out of debt without the stress and worries. You get to rely on your debt consultant to help you fight for the life you deserve because they have the expertise and knowledge to get it right.