Compare Consolidation Loans
In South Africa, consolidation loans allow you to move one or more of your existing debt balances into one single account to make it more manageable. Borrowers typically move their unsecured borrowings, such as credit card, store card or other forms of loans into one single consolidation loan. This means the borrower will only need to make one monthly repayment instead of multiple repayments to various lines of credit.
More Reasons To Get A Quote:
- Low, flexible repayment terms
- Choice of top South African lenders
- Save money with low-interest rate options
- Fully online - No paperwork required
What is a debt consolidation loan?
A debt consolidation is a loan that is taken out in order to pay off other smaller loans. It consolidates your different debts into one single payment, and often can allow you to save money by obtaining a lower interest rate. The goal is to make your debt more manageable by turning it into one payment rather than multiple payments.
What are unsecured debt consolidation loans?
Unsecured debt consolidation is not secured against any personal assets, such as your car or home. Unsecured loans are typically for smaller amounts. Because they are riskier for South African lenders, they can be more expensive than secured loans. But at FatCatLoans South Africa, we’ll search for the best rate across our panel of lenders when you apply online for a quote so you can make an informed decision.
Frequently Asked Questions
Is debt consolidation a good idea in South Africa?
Debt consolidation is typically a good idea in South Africa, if it’s managed well and you ensure to make your payments on time. If you owe money to more than one South African creditor, consolidation is a great way of grouping those debt balances together and combining them into one easy monthly repayment. You can also save money on interest by finding a debt consolidation loan with lower rates than your existing accounts.
How much can I borrow?
Any South African can borrow between R300 to R8,000 on an unsecured basis, over a suitable period. Our online lending terms vary from 3 to 84 months.
Which types of debt can I consolidate??
This type of loan can be used for consolidation purposes for many forms of online credit in South Africa. This includes:
- Personal loans
- Credit cards
- Store cards
- Short-term loans
- South African current account overdrafts
- Home improvement loans
Will a debt consolidation loan affect my credit score?
A debt consolidation loan could cause your credit score to take a dip in the short term. However, steadily paying off your debt is one of the smartest things you can do to improve your credit score. This means that if a debt consolidation loan helps you gain control of your unsecured finances and it is paid on time and in full, you should get a positive boost. All in all, a debt consolidation loan can improve your credit score and help you work towards becoming debt-free.