Debt Consolidation in South Africa
There are many lenders offering Debt consolidation loans South africa with low-interest rates between 2%- 4%p.a, a loan of up to R5,000,000.00, depending on the company.
Consolidating Debts in South Africa
Most consumconsolidationers in South Africa are consolidating their debts as it helps in easing monthly instalment burdens with debt consolidation loans South africa.
Debt consolidation is a situation where, instead of paying three or four payments every month to various lenders all with different interest rates and repayment amounts, you merge several loans into a single account that have its Annual Percentage Rate and loan tenure.
Therefore, Debt consolidation loans South africa are beneficial as they help you to pay a smaller 30-day refund, they free-up necessary cash for day-to-day expenditures that you are struggling to meet and lowers the risks of default.
Types of Debt Consolidation Loans in South Africa
Before considering Debt consolidation loans South africa to assist you in your financial challenges, you first need to understand the various lines of credit available. One of the debts you can merge is a personal or unsecured loan. However, for a financial institution to award you a consolidating loan, it first has to approve that you have a good credit history and that you are not going through debt counselling or review. Also, money lenders will attest that you do not have a bad credit score and that you are eligible to apply and repay a new bank loan.
Another way you can consolidate debt is through a home equity loan. Naturally, home equity credit is of low-interest rate, but spreads over a very long term; hence, you will end up repaying a massive amount of fees and interests.
One of the significant ways to consolidate debt in a home loan is by taking out a second mortgage to repay existing unsecured debts. However, if you use equity credit line as collateral for a debt consolidation loan, you should avoid acquiring an additional secured loan to achieve maximum benefits.
Qualification for Debt Consolidation in South Africa
Typically, bad credit and non-payment are well-known situations associated with debt consolidation, but it is only those with a good credit history, or outstanding loan security can get one from the banks. Naturally, if you fail to qualify for a personal loan in any financial institution, there are high chances that you will not be eligible to consolidate your debts.
Other requirements for Debt consolidation in South africa include: you must be between the age of 18-65 years, must have 3 or more unsecured debts, and you ought to possess a valid South African identity card.
Most firms in the country are offering consolidation loans with low-interest rates ranging between 2%- 4%p.a, and you can apply for a loan of up to R5,000,000.00, depending on the company.