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Consolidation Loans
Merge your loans a credit card debts into one and save money with lower interest rate. Debt consolidation providers with good and bad credit in South Africa.
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Properties of this loan
- Personal loans up to R300.000
- Term 12 - 72 months
Loan requirements
- SA ID number
- Proof of residence not older than 3 months
- 1 month's payslip
- Last 3 months’ bank statements, if you don't bank with us
About company
More information about the company Standard Bank
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Properties of this loan
- Online loans up to R250.000
- Term 7 - 72 months
- Cash in your account within 24 hours
Loan requirements
- Most recent proof of income, reflecting 3 salary deposits
- You must be over 18 to apply for a Loan
- Proof of residence not older than 3 months
- Latest bank statement, reflecting 3 salary deposits
About company
More information about the company African Bank Limited
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Properties of this loan
- Online loans up to R50.000
- Term 6 - 24 months
Loan requirements
- A valid SA ID
- 3 latest payslips or 3 latest bank statements
- Must be permanently employed and earning a monthly salary
- A valid cell phone number
- A valid SA bank account
- Must be 18 years or older
About company
More information about the company Capfin SA (Pty) Ltd
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Properties of this loan
- Online loans up to R150.000
- Term 12 - 60 months
- Decision in seconds
- Cash in your account within 24 hours
Loan requirements
- You must be 18 years old and older
- You must have a South African ID
- You must earn a minimum of R2000 a month
- You must hold a bank account
- You will be required to provide proof of income documentation
About company
More information about the company RCS Group
Fast information
Properties of this loan
- Professional financial advice and tips to improve your score
- Complimentary loan assist service of up to R150,000 cash
Loan requirements
- Be 18 years or older
- Have a valid SA ID or Drivers License
- Have a bank account
About company
More information about the company Credit Gain Services (Pty)
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Properties of this loan
- Online loans up to R3.000
- Term 4 - 31 days
- Fast application
Loan requirements
- Your SA ID number
- Your bank account
- Your cell phone number
- Your latest three (6) payslips
- Your latest three (6) months bank statements showing your income
About company
More information about the company Westside Cash Connection (Pty) Ltd
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Properties of this loan
- Online loans up to R2.000
- Term 1 - 90 days
- Easy online application
Loan requirements
- You need to be a South African citizen
- above 18 years of age
- You also need to be employed and have a valid bank account
About company
More information about the company gp credit Solutions (Pty) Ltd
Fast information
Properties of this loan
- Online loans up to R10.000
- Term 1 - 12 months
- Quick application
Loan requirements
- A copy of your I.D.
- Your most recent monthly bank statements
- A copy of your most recent pay slip
- Proof of residence (not more than three months old)
About company
More information about the company Mafori
Debt consolidation refers to combining all your debt into a single loan which you can repay over an extended period. For instance, if you have multiple loans from different lenders, it can be a daunting task to pay all of them at the same time, especially with high interest rates.
Credible s statistics reveal South Africans are plunging in personal debt. As of 2018, an estimated 25 million had accrued a form of a debt. Out of this number, 40% were behind on payments. A common solution for this problem is by taking up a debt consolidation loan. In simpler terms to take on a huge loan, repay all your prior loans and then focus solely on repaying the consolidation loan. The premise is that you take out a new loan large enough to pay off all your old ones, leaving you with a single, sizeable loan to service.
However, there are three essential factors that South African consume tend to ignore when taking on a consolidation loan. If you are looking to consolidate your debt, it’s imperative that you inform yourself of them.
1. Debt Consolidation Increases Your Debt
While a consolidation loan does help provide relief from your current overwhelming debts, it’s no magic wand. By taking a long-term consolidation loan to repay current over whelming debts you take on more debt than the original debts combined.
A consolidation loan simplifies servicing multiple debts by allowing you to repay all your pending loans in one installment including the accumulated interest on the loans.
However, the consolidation loan also comes with additional interest that you will also have to repay along the borrowed sum. Hence, despite the temporary relief that comes with paying your urgent loans with a consolidation loan, you actually acquire more debt in the long run.
2. Consolidation Loans with Bad Credit are Difficult to Get
Just because loan consolidation is available for you, doesn’t necessary mean anyone can get approved. If you have bad credit, getting approval for a consolidation loan is tricky business. In most cases, a lender will assume you have already defaulted on the loans you are trying to consolidate and hence you could also default on the consolidation loan.
Hence, if you are going to opt for a loan consolidation, ensure that you have good credit. Else you need to provide guarantors before you get approved. Unfortunately, most people only apply for loan consolidation after they have already defaulted on a few payments. It would be best to apply for loan consolidation as soon as it seems like you might miss a payment on your current loans. This way, you get to keep a good credit score and it is easier to get approved by a lender for a consolidation loan.
3. You might not get the Full Amount You Need
Loan consolidation providers will not always take up all your current debt. The amount a lender is willing to consolidate for you is dependent on two main factors: your credit history and your ability to repay the loan within a given period of time.
If you have bad credit history as well as limited income, then the lender will only provide consolidation for the amount that they deem you can comfortably repay. Nonetheless, you can try and consolidate with more than one lender. However, this option is very risky because if the lender discovers you already have another consolidation loan, they will have to weigh how much you can afford to pay on top of the other loan. As a result, you might once again not get the full amount you require.
Lincoln Ndirangu(LinkedIn)Lincoln Ndirangu is a professional freelance web copywriter based in Nairobi, Kenya. For over 7 years, writing for the web and engaging the online audience has been primary focus and passion.More information...