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Loans & Credit

Debt Consolidation Calculator South Africa 2026

Compare your credit cards, store accounts and personal loans against one consolidation loan to see how much you could save on monthly payments and total interest.

✓ Updated with 2026 rates•✓ Free & no sign-up•✓ Instant results

Debt consolidation

Live comparison · combine debts into one · 2026

Your current debts

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R
R
R
R
R

Consolidation loan terms

Typical: 14–18% for good credit

R

Max R1,207.50 or 15% of loan (whichever is higher)

R

Typical: R50–R69 per month

New monthly payment

R2 984

R1 516 less than the R4 500 you pay now

Total debt
R120 000
Weighted rate now
20.6%
New loan amount
R121 208
New rate
15.5%
Monthly saving
R1 516
Total saving
-R15 669

At these terms, consolidating your 3 debts would cost about R2 984 per month — that is R1 516 the same as what you pay now. Try a lower rate (aim for 17.6% or less) or a shorter term before consolidating.

Current debt situation

  • Total debtR120 000
  • Monthly paymentR4 500
  • Weighted interest rate20.58%
  • Total interest (est.)R44 604
  • Total costR164 604
  • Time to pay off46 months

Consolidation loan

  • Loan amountR121 208
  • Interest rate15.5%
  • Monthly paymentR2 984
  • Total interestR60 273
  • Total costR180 273
  • Loan term60 months

Analysis

Monthly savings
R1 516 saved
Total savings
R15 669 more cost
Payment reduction
33.7% lower
Interest rate savings
5.08% lower
Time saved
14 months longer

This is an independent estimate, not a quote. Your actual rate depends on your credit score, income and affordability. Only consolidate if you can afford the new payment and commit to not taking on new debt — if you are over-indebted, speak to an NCR-registered debt counsellor.

How to consolidate debt in South Africa

Debt consolidation combines your credit cards, store accounts and personal loans into one single payment at a lower interest rate. Use the calculator above to check whether consolidating will actually save you money each month and over the full term.

Lower interest rate

Move from 20–24% credit card rates down to a typical 14–18% consolidation loan rate.

Single monthly payment

One payment instead of juggling several debts on different dates.

Fixed repayment term

A clear payoff date (usually 3–7 years) versus revolving credit card debt.

Better credit over time

On-time payments and lower credit utilisation can improve your score.

Is debt consolidation worth it?

✓ Good reasons to consolidate

Multiple high-interest debts (>20% p.a.), trouble tracking payments, a good credit score that qualifies you for a lower rate, stable income, and a firm commitment to stop adding new debt.

✕ Bad reasons to consolidate

Freeing up cards just to spend more, a consolidation rate higher than your current average, not being able to afford the new payment, unaddressed overspending, or being near the end of your debt anyway.

Debt consolidation vs debt review

Debt consolidation

A new loan you take to pay off existing debts. No credit-record flag, you keep control of your accounts, you can still apply for credit, and the process takes days to weeks.

Debt review (counselling)

A legal process under the National Credit Act where a debt counsellor renegotiates with creditors. You are flagged as "under debt review", cannot take new credit, and must complete the programme (3–5 years).

Important: only consolidate if you can afford the new payment and commit to not taking on new debt. If you are over-indebted, speak to an NCR-registered debt counsellor.

Smart consolidation tips

Shop around

Compare at least three NCR-registered lenders to get the best rate.

Mind the term

A shorter term means higher monthly payments but far less total interest.

Watch the fees

Check for initiation fees, monthly service fees and early-settlement penalties.

Stop the cycle

Avoid new debt after consolidating, or you will end up worse off.

Frequently asked questions

Quick answers to the most common questions.

What is debt consolidation in South Africa?
Debt consolidation means taking out one new loan to pay off several existing debts — typically credit cards, store accounts and personal loans. Instead of juggling multiple repayments at different interest rates, you make a single monthly payment, usually at a lower rate (often 14–18% versus 20–24% on credit cards) and over a fixed term.
When does debt consolidation actually save money?
It saves money when the consolidation loan's interest rate is lower than the weighted average rate on your current debts and you keep the repayment term sensible. If you stretch the term too long the monthly payment drops but you can pay more total interest, so always compare the total cost — not just the monthly amount. Use the calculator above to check both.
What is the difference between debt review and a consolidation loan?
A consolidation loan is a normal new loan you take voluntarily — you stay in control of your accounts, there is no flag on your credit record, and it is fast to arrange. Debt review (debt counselling) is a formal legal process under the National Credit Act where a registered debt counsellor renegotiates your repayments; you are flagged as "under debt review" and cannot take new credit until you complete the programme (often 3–5 years).
Does debt consolidation hurt your credit score?
A consolidation loan itself is not a negative mark. There may be a small temporary dip from the new credit application, but consistent on-time payments and lower overall credit utilisation generally improve your score over time. The risk is running the old cards back up — only consolidate if you stop accumulating new debt.
How does the National Credit Regulator (NCR) protect me?
Under the National Credit Act, all lenders and debt counsellors must be registered with the NCR, must perform an affordability assessment before granting credit, and must disclose the interest rate and all fees up front. This guards against reckless lending and hidden costs — always confirm a provider is NCR-registered before signing.

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