Simplify your life and free up cash with a single, manageable debt repayment
Simplify your life and free up cash with a single, manageable debt repayment
Did you know that 12 million South Africans are overburdened by debt? If you’re struggling to keep up with multiple debt repayments, you’re not alone. The good news is, there is a solution. Here’s what you need to know about taking back control of your finances through debt consolidation.
Understand your debt profile so you know what your next steps are.
You can consolidate your debt with or without a loan. Find out which option suits you best.
See if you qualify for debt consolidation and take the first step towards financial freedom.
Avoid lender harassment and safeguard your credit score by choosing the right debt solution.
Debt consolidation helps you combine multiple debts into a single payment, potentially at a lower interest rate.
This simplifies the repayment process, improves cash flow, and reduces financial stress, setting you on the path to debt freedom.
There are two ways to consolidate your debt; through a debt consolidation loan or through debt counselling. The following outlines the key differences between the two strategies.
A debt consolidation loan allows you to pay off multiple debts with a new, bigger loan. This could translate into:
While convenient, bear in mind that a debt consolidation loan may have a longer repayment term. It can also attract higher interest rates than some of your original debt – for example, if you have asset-based finance – increasing the total cost over time.
Be aware that if you are overindebted, meaning, your monthly repayments are higher than your total income, you will not qualify for a debt consolidation loan. In this case, debt counselling may be a viable option.
If you are overindebted, you may well benefit from debt counselling as a debt consolidation solution. A debt counsellor will:
The table below compares the two options.
| Debt consolidation loan | Debt consolidation through debt counselling | |
|---|---|---|
| Interest rates | May be higher | Usually lower |
| Costs | May have hidden fees (origination, processing and administrative fees, variable interest rates, annual fees) | Involves a monthly fee |
| Pros | Simplified repayments | Lower debt burden |
| Cons | Can lead to more debt if not managed carefully | May take longer but offers more sustainable relief |
Debt consolidation helps to:
Ask yourself these questions to determine whether debt consolidation may be the right solution for you:
If your answer is “yes” to three or more of these questions, speak to a DebtBusters consultant on 086 999 0606 or email info@debtbusters.co.za.
Check if you meet these criteria for debt counselling:
If you meet the above criteria, debt consolidation through debt counselling could be the solution to help you take back financial control.
Request a FREE call-back from one of our debt experts.
If you’re overindebted, consolidating your debts into a single, manageable monthly payment can simplify your finances and free up cash.
Bear in mind that if you consolidate your debt through debt counselling, you won’t be allowed to apply for new credit until you successfully complete the process and get your clearance certificate.
If you choose to consolidate your debt through debt counselling, your credit score remains protected under the NCA.
You will be listed as undergoing debt counselling, but you won’t face penalties for past missed payments.
Overindebted consumers who successfully complete debt counselling have, on average, significantly higher credit scores than those who do not engage in the process.
There is no official “blacklist” under the NCA, but a poor credit record makes it difficult to qualify for a consolidation loan.
However, you can still consolidate your debt through debt counselling, even with poor credit.
There’s no set timeframe, but debt counselling typically helps clients to become debt-free within 60 months.
Your timeline depends on:
Yes! If your income fluctuates, you can still consolidate your debt, as long as you can prove you can make one monthly repayment, even from non-traditional earnings.
Ready to get on the debt-free path? Request a call-back.
If you have any questions or need assistance, don't hesitate to reach out. Fill in the form below, and our team will get back to you.
DebtBusters is South Africa’s leading and most trusted debt management company. We help South Africans bust debt for good, through expert advice, personalised plans, and real, lasting results. It gets better, and we’re here to help you get there.
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