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Debt Consolidation

Simplify your financial life by replacing multipledebt repayments with a single monthly payment.

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Understand your situation

Get an understanding of your current debt profile and which consolidation solution would benefit you most.

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Get protection from creditors

Avoid creditor harassment and the accompanying personal administration hassles.

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Compare your options

Compare the cost implications and affordability of a consolidation loan versus a structured consolidation plan such debt counselling.

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Check the numbers

View a summary of current debt and cost of the interest on each credit account to determine if the consolidation loan will in fact provide interest rate savings.

What is debt consolidation?

Debt consolidation simplifies your financial life by replacing multiple debt repayments with a single payment. Debt consolidation involves taking out a single, new loan, at the lowest possible interest, to pay off multiple smaller debts. In some circumstances, this can save you money.

How do people end up so indebted? 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 is mounting and the bill is coming. Are these credit items familiar to you? (1) Monthly groceries, (2) Clothing accounts, (3) Car payments, (4) Cell phone contracts, (5) Furniture, (6) Household appliances, (7) Petrol.

If so, you’re not alone. Twelve million South Africans are considered to be over-indebted. It may feel isolating to be in a situation where the debt is starting to overwhelm you, but there is hope. A debt consolidation loan could be one way to address this. The other way is through debt counselling.

When is a debt consolidation plan a good idea?

Those who do not fully understand the intricacies of the system often state that taking out another loan to pay off previous loans doesn’t make sense. However, in some circumstances, it definitely can. If multiple creditors constantly harass you by phone (an extremely unpleasant experience) and you want the calls to end, then a debt consolidation loan can be a quick fix. If it’s planned out very carefully, it can also be the most cost-effective option. It’s common practice in South Africa for creditors to sell your debt to other companies, and this is typically where payment notifications turn into harassment. Although it’s illegal, some of these debt collection companies will add nonsensical bills to your owed total – charging you every time that they have to make a call, whether they reach you or not. If all of this makes you feel like you’ve lost control, that these collection people are mishandling your account and costing you more money, a debt consolidation loan is one option. A more structured approach is debt counselling.

Contact Us

5th Floor, 11 Adderley Street,Cape Town, 8001
[email protected]

Operating Hours:

Mon-Thu: 07:00 - 21:00
Fri: 07:00 - 18:00
Sat: 09:00 - 12:30

Call our experts now on 0861 365 910Registered debt counsellor NCRDC2484A member of the National Debt Counsellors Association