Compare your current multiple debts against a single consolidation loan. Calculate monthly savings, total interest reduction, and see if debt consolidation is right for you.
Compare your current debts vs. a single consolidation loan
Typical: 14-18% for good credit
Max R1,207.50 or 15% of loan (whichever is higher)
Typical: R50-R69 per month
Based on current terms, consolidation would not provide significant savings. Consider negotiating a lower interest rate (target: 17.6% or less) or shorter term before consolidating.
Debt consolidation combines multiple debts (credit cards, personal loans, store accounts) into one single loan with a lower interest rate and simplified monthly payment.
Reduce from 20-24% credit card rates to 14-18% consolidation loan
Simplify finances - one payment instead of juggling multiple debts
Clear payoff date (3-7 years) vs. revolving credit card debt
On-time payments and lower credit utilization boost credit rating
Take out a new loan to pay off existing debts. You remain in control of your finances.
Legal process under National Credit Act. Debt counselor negotiates with creditors.
Important: Only consider debt consolidation if you can afford the new payment and commit to not accumulating new debt. If you're over-indebted (spending more than you earn), consider debt counseling or financial advice from a registered debt counselor.