Debt consolidation is where you consolidate – or combine – a number of individual debts into a single debt. Instead of having lots of little debts; such as store cards, credit cards, short-term loans and overdrafts, debt consolidation wraps all of those smaller debts into one bigger loan.
Read our handy guide on all the ins and outs of debt consolidation. If you have any questions about debt consolidation, ask our expert.
The guide below helps to explain debt consolidation. If you still have questions after reading the guide, ask our debt expert or you can also visit our FAQ page.
Dealing with debt can be daunting. If you’re struggling to keep track of which store account to pay next and weighing up which credit card is more important to settle first, you may have considered debt consolation. At Justmoney, we’ve decided to get down to the basics and explain what this entails and what impact you can anticipate on your credit score.
The proposed amendments to the National Credit Act could discourage consumers from paying their debts and increase irresponsible borrowing, said the Banking Association of South Africa (BASA).
According to reports, South Africans are becoming heavily indebted, with interest rate hikes and the weak economy exacerbating the situation. Justmoney chats to DebtBusters about debt consolidations and the types of consolidation loans on offer.
It is important to understand what debt consolidation is and how it works before deciding to take out a consolidation loan.
