Debt Consolidation

Debt consolidation is the globally accepted definition where you consolidate multiple debt repayments into one. Consolidating your debt simplifies your financial life by putting together all your debt repayments into one single payment which is paid to all your credit providers.

Consolidating your debt does not involve taking out a new loan.

Many will look toward a consolidation loan, which involves taking out a single, new loan, at the highest interest rate, to pay off multiple smaller debts. In rare circumstances, this can save you money, however, for most consumers this comes at a very high interest rate, upwards of 25% or more.

In today’s economy, the financial pressures on households are enormous. Marketing on TV, online, and in newspapers bombard us with all the great new items that we can purchase. To be able to buy all these items, we are told to get credit. It can be alluring, you can get everything you’ve ever wanted, seemingly at little cost — for now. Slowly, however, the debt will mount.

If you feel like debt is overburdening you, you’re not alone. Twelve million South Africans are considered to be overburdened by debt. It may feel isolating to be in a situation where the debt is starting to overwhelm you, but there is hope. Consolidating your debt through debt counselling is the best way to get you back on your feet.