Debt Consolidation South Africa 2025: Compare Loans & Save Money
Combine multiple debts into one manageable monthly payment. Compare consolidation loans from major South African banks, reduce your interest rates, and create a clear path to becoming debt-free.
Potential Savings
Interest Rates: 10% - 28% (compared to 20-30% on credit cards)
Monthly Savings: 20% - 50% reduction in payments
Loan Amounts: R10,000 - R300,000
Benefits of Debt Consolidation
Single Monthly Payment
Combine multiple debts into one manageable monthly payment
Lower Interest Rates
Potentially reduce overall interest rates compared to credit cards
Simplified Finances
Easier budgeting with one payment date and amount
Improved Credit Score
Consistent payments can help rebuild your credit rating
Debt Freedom Timeline
Clear end date for becoming debt-free
Stress Reduction
Less financial stress with organized debt management
Types of Debt Consolidation
Personal Loan
Unsecured loan to pay off existing debts
Home Equity Loan
Secured loan using home as collateral
Balance Transfer
Transfer high-interest debt to lower-rate credit card
Personal Loan - Detailed Analysis
Advantages
- Fixed interest rate
- Predictable payments
- No collateral required
- Quick approval
Key Features
Considerations
- Higher interest than secured loans
- Credit score dependent
- Income requirements
- Early settlement penalties
Compare Debt Consolidation Providers
FNB
11.75% - 27.5%FNB Consolidation Loan
Key Features:
- Online application
- Quick approval
- Flexible terms
- Existing customer benefits
Requirements:
- Minimum income R8,000
- 3 months bank statements
- Clean credit record
- Permanent employment
ABSA
13.5% - 27.5%ABSA Debt Consolidation Loan
Key Features:
- Online application
- Flexible terms
- Direct creditor payments
- Debt counselling support
Requirements:
- Minimum income R8,000
- Valid ID and proof of income
- 3 months bank statements
- Good credit record
Old Mutual
14% - 28%Old Mutual Personal Loan
Key Features:
- Insurance benefits included
- Member discounts
- Payment protection
- Flexible repayment
Requirements:
- Minimum income R6,000
- Valid ID and proof of income
- Bank statements
- Affordability assessment
African Bank
15% - 27.5%African Bank Consolidation
Key Features:
- Competitive rates
- Quick decisions
- Debt counselling support
- Flexible terms
Requirements:
- Minimum income R4,000
- 18+ years old
- South African resident
- Stable employment
Capitec
11.9% - 19.5%Capitec Credit Facility
Key Features:
- Very competitive rates
- Global One account
- Easy management
- No monthly fees
Requirements:
- Capitec account required
- Minimum income R3,000
- Clean credit record
- Direct salary deposit
Standard Bank
13% - 28%Standard Bank Personal Loan
Key Features:
- UCount rewards
- Payment holidays available
- Online management
- Insurance options
Requirements:
- Minimum income R7,500
- Valid identification
- Proof of residence
- Employment confirmation
Nedbank
12.75% - 27.5%Nedbank Personal Loan
Key Features:
- Greenbacks rewards
- Life insurance included
- Flexible terms
- Digital application
Requirements:
- Minimum income R8,000
- 3 months employment
- Clean credit record
- South African citizen
How to Apply for Debt Consolidation
Assess Your Debt
List all debts, interest rates, and monthly payments
Required:
Calculate Potential Savings
Compare current payments with consolidation options
Required:
Research Lenders
Compare interest rates, terms, and requirements
Required:
Apply for Loan
Submit application with required documentation
Required:
Pay Off Existing Debts
Use loan proceeds to settle all existing debts
Required:
Eligibility Requirements
Age & Residency
- 18 years or older
- South African citizen or permanent resident
- Valid South African ID
- Proof of residence
Income
- Minimum monthly income R3,000-R8,000
- Stable employment (3+ months)
- Proof of income (payslips)
- Bank statements (3 months)
Credit Profile
- Acceptable credit score
- No recent defaults
- Not under debt review
- Affordability assessment pass
Documentation
- Valid ID document
- Latest payslips
- Bank statements
- Proof of residence
Frequently Asked Questions
Is debt consolidation a good idea?
Debt consolidation can be beneficial if you qualify for a lower interest rate than your current debts, can afford the new monthly payment, and are committed to not accumulating new debt. It simplifies payments and can save money on interest.
How much can I save with debt consolidation?
Savings depend on your current interest rates and the new loan rate. Many people save 20-40% on monthly payments and thousands of rands in interest over the loan term. Use our calculators to estimate your potential savings.
Will debt consolidation affect my credit score?
Initially, applying for a consolidation loan may cause a temporary dip in your credit score due to the credit inquiry. However, paying off existing debts and making consistent payments on your new loan can improve your credit score over time.
What debts can be consolidated?
Most unsecured debts can be consolidated including credit cards, store cards, personal loans, and payday loans. Secured debts like home loans and car loans typically cannot be included in consolidation loans.
How long does the approval process take?
Approval times vary by lender but typically range from same-day to 7 business days. Online applications are usually faster, and existing bank customers may receive quicker approvals. Having all documentation ready speeds up the process.
Important Considerations
Before Consolidating
- • Calculate total costs including fees and interest
- • Compare multiple lenders and offers
- • Ensure you can afford the new monthly payment
- • Consider whether you'll avoid new debt
- • Review all terms and conditions carefully
Alternatives to Consider
- • Debt counselling and debt review
- • Negotiating with creditors directly
- • Balance transfer credit cards
- • Budgeting and debt snowball method
- • Increasing income or reducing expenses
Important: Debt consolidation is not a magic solution. It requires discipline to avoid accumulating new debt and commitment to making consistent payments. Consider seeking financial counselling to address underlying spending habits.