One of the brands in our Group specialize in debt consolidation - ConsolidationLoans.co.za.
What is a "Consolidation Loans"? A consolidation loan aims to consolidate all your non-asset based debt into a single facility. Non-asset means all loans and accounts that are not linked to your car or fixed property. These would typically include personal/cash/micro loans, retail accounts etc. Why would you want to consolidate your debt? To save money.
With a consolidation loan, you will:
- Benefit from a better interest rate. You may ask “How substantial can that be”. Allow us to explain: Some lenders charge you the maximum interest rate allowed by law (currently around 33% for unsecured lending). To make things worse, they enforce a credit life insurance on you. This insurance is so expensive that it effectively pushes your interest rate up to over 50% per year! Imagine you are paying 50% interest?!? A single facility with a credible lender like FNB will probably result in an effective interest rate of anywhere between 15% - 30%. That is a huge saving from over 50%!
- Pay less fees. Every account you have are charged with fees. These include an initial fee and a monthly fee. If you have 5 accounts, you are paying 5 initial fees and 5 monthly fees. Obviously one fee works out cheaper.
- Save on insurance. Whilst credit life insurance is mandatory on most loans, when you take a consolidation loan from us you will have access to our very well priced credit life cover. The difference in insurance rates are as much as R 10 per month for every R1000 of debt you have. So, if your debt totals R 100 000, you will save at least R 1000 per month.
Click here to access our Consolidation Loan Application Form
*Please note you will require a clean credit profile to benefit from this wonderful product.