I went into arrears with an account a few years ago being in a situation where I could not pay them. I made an arrangement to pay them a set amount every month (of which I have been paying). I have other accounts that are paid on time every month. I would now like to consolidate the current debt (excluding the one in arrears) to have one payment (being less) every month as my husband is out of work and trying to start up his own business so due to this, I’m carrying more expense on the household. I’ve been declined on consolidating these accounts that I’ve paid on time and not in arrears with. I only need about R25 000.00 to consolidate the current accounts. If I can consolidate them I will have extra cash every month and not be put into a situation where I can’t pay them. Where can I go for assistance? It’s just the one account showing high in arrears that are preventing me from consolidating current loans.
Thank you for your question.
We help over-indebted South Africans through a program called debt review. Debt review is not a consolidation loan.
With consolidation loans you only shift your debt from one place to another. Most people will not qualify for a consolidation loan. There are two ways in which you can consolidate your debt. If you own a property and have liquidity in the property; meaning that your property is worth more than what you still owe the bank. You can use that to finance your other debt.
The other way to consolidate is to take out a consolidation loan at the bank. This typically has a limit of R50 000 and the consumer must be able to afford the instalment on top of their existing debt instalments. For most people R50 000 is not enough anyway and the interest and fee charges are also extremely high. With this consolidation loan your creditor will do an affordability assessment, and will only give you the loan if you can afford double the amount of your debt.
Unlike consolidation loans, which have very strict requirements (and at the end leaves you with more debt) debt review restructures your credit obligations to an affordable, consolidated, repayment plan.
For more information about debt review you are welcome to fill in our online contact form here.
Once submitted our contact centre will be in touch with you shortly to discuss your options.
Have a great day.