Debt Consolidation Loans

With debt consolidation loans you can create one payment by converting all your smaller debt into one loan transaction. The benefit is that you will only need to repay one amount or installment per month.  You will be able to clear all you credit cards,  overdraft,  store cards, creditors and personal loans. By using debt consolidation loans you can also make sure your credit record stays clear or even possibly improve it.

If you own your home applying for this type of loan should be very easy.  You would use your home as collateral for the loan that will clear all other debt. You would need to be able to proof monthly income from the household of R 10,000 or more.

There need to be value in your property.

After a successful application the loan amount cannot be greater than 70% of the value of your home. 

The organisation that assist you with such an application will also need to settle all creditors as listed above.

If you have been blacklisted or received a judgement,  these need to be removed from the credit bureaus. Please ask for confirmation of this step by the credit provider.  You do not want to receive an additional loan and thereafter still be phoned by the "old" creditors. 

The interest rate of these type of loans will be more than your average bond rate,  but will be less expensive than all your smaller debt. Be sure not to apply for further debt again after been approved for this consolidation loan.  The main purpose of this loan is to be able to get refinance at one of the main banks in about 12 months.  This will ensure the best possible interest rate.

Very important:  Remember that you are replacing short term debt with long term debt.  If you are currently in need of breathing space this would be your best option,  but do try to repay the loan quicker than it's monthly installment ask you to.