facebook

Need help getting rid of your debt?

We’ll Contact You!

  • This field is for validation purposes and should be left unchanged.

debt solutions banner

Debt Consolidation

What is debt consolidation?

Debt consolidation is the process of combining all your debt, and taking all your individual monthly repayments and replacing it with one installment.

How does it work?

South African consumers have two major options when it comes to consolidating their debt. They can either apply for a consolidation loan, or choose to be placed under debt review, as set out in the National Credit Act (NCA)

Debt consolidation loan

A consolidation loan is basically one big loan to cover all your debt obligations. Here are a few points to note with regard to these loans:

  • You are actually just paying your old debt with new debt.
  • Consolidation loans are usually very expensive, as the interest rates are very high
  • You will have to pay an initiation fee on the consolidation loan.
  • If you are in arrears with any of your accounts, you will not be able to qualify for a consolidated loan. You need a clean credit record to apply for a consolidated loan.

Debt review consolidation

One of the best options for consolidating your debt is to use the NCR regulated process of debt review.

  • You still only pay one amount at month end.
  • Your interest rates are lowered.
  • Your term is extended.
  • Whilst paying only one lower monthly installment, your assets are protected from repossession and you are shielded from the harassment by debt collectors and creditors.

Thousands of South African consumers have become financially free by consolidating their debt via debt review. If a registered debt counsellor, like those employed by NDA consolidates your debt into one monthly lower installment, you are guaranteed a clean credit record and the chance to start over.

Related posts
Debt Review Removal: Navigating The Journey Out

Debt Review Removal: Navigating The Journey Out

How to Clear Your Name from Debt Review Are you wondering how to clear your name from debt review after completing the process? Once you have settled all of your debts and received your clearance certificate, your debt counsellor is obligated to notify the credit...

Tax Implications of an Interest Free Loan

Tax Implications of an Interest Free Loan

Interest free loans sound like an enticing financial solution for anyone looking to borrow money without the added burden of historical interest rates especially considering the past year when we saw a significant interest rate change in South Africa. While the...