Debt consolidation

Many repayments. One clear plan.

Debt consolidation brings several debts together so you pay one amount each month instead of chasing many debit orders. It does not erase what you owe, and it is not always the cheaper option, so start with the numbers below.

List my debts first

Estimate your one repayment.

Change the amount and the term to see how a single repayment could look on an illustrative unsecured rate.

Transparent estimate

See one possible repayment

Amount to consolidate

What you pay now

Repayment term 48 months

An illustration using 21% a year, a R1 207,50 initiation fee and R69,00 monthly service fee.

Illustrative proposed repayment

R4 023,55

One payment, one date
A repayment that fits your budget
Terms from 12 to 72 months

Illustration only, using 21% a year plus the fees shown. Not a quote or offer. Actual rates, fees, terms and repayments depend on a registered credit provider's assessment.

Two routes, two outcomes.

In South Africa there are two very different ways to end up with one payment. The right one depends on whether you can still afford your current repayments.

One consolidation loan

A single new credit agreement settles the debts you choose.

Best suited to people who are up to date and still creditworthy
One repayment, one date, one agreement to track
A longer term can lower the monthly amount but raise the total repaid
Granted only by a registered credit provider after affordability checks

Restructuring through debt counselling

One reduced payment is negotiated across your existing credit agreements.

Suited to people who cannot cover their current repayments
Interest and fees can often be reduced by agreement
Legal protection while the agreed plan is honoured
Handled by a registered debt counsellor, and no new credit while under it

Not sure which applies to you? Read consolidation or debt counselling before you decide.

What is usually needed.

These are the broad requirements a registered credit provider will look at. Meeting them is not an approval, and not meeting them does not mean there is no help available.

A valid South African IDWe verify a 13 digit ID number as part of the assessment.
Regular incomeFrom about R8 000 a month after deductions.
Proof of incomeRecent payslips and bank statements for the affordability check.
Unsecured debt to combineFrom around R10 000 across your accounts.
Not under administrationOr an active court order covering the same debt.
Debit order friendly bankingA South African bank account in your own name.

What the law allows a lender to charge.

The National Credit Act caps what you can be charged. With a repo rate of 7%, the yearly maximums work out as follows.

Type of credit	Maximum interest a year
Mortgages	19% (repo + 12%)
Credit cards, store accounts and overdrafts	21% (repo + 14%)
Other credit agreements	24% (repo + 17%)
Unsecured loans	28% (repo + 21%)
Developmental credit	34% (repo + 27%)
Short-term loans	5% a month on a first loan, 3% on later loans that year

An initiation fee and a monthly service fee are charged on top of interest, and both are capped.
Credit life cover may be required on a new agreement. Ask for the cost in rands before you sign.
Always compare the total repayable over the full term, not only the monthly instalment.

More detail in maximum interest rates in South Africa.

Ready for a proper look?

Share your details once. A Consolidation Relief Financial Assessor reviews your position and contacts you to complete the assessment with registered professionals.

We are not a lender

Consolidation Relief assesses your position and works only with registered credit providers and registered debt counsellors. Nothing here is a quote, an offer or a promise of approval, and we never sell your details to a panel of lenders.