If you’re struggling to keep track of multiple repayments from different credit cards, store accounts, or loans, Old Mutual’s Debt Consolidation Loan could be the answer. This financial solution combines all your existing debt into a single, larger loan, meaning you only have one repayment to manage each month. Loans are available up to R250 000, and repayment terms range from 3 to 72 months. An interest rate of up to 29.25% per annum applies, with initiation and administration fees included in your agreement. The application process demands you are at least 18, a South African citizen, have a valid ID, three months’ bank statements, and your latest payslip.

How to Apply for the Old Mutual Debt Consolidation Loan

1. Decide which debts you want to settle and note their details.
2. Complete an online application, call Old Mutual, or visit a branch.
3. Provide all necessary documents for verification.
4. Wait for a credit assessment and approval.
5. Once approved, Old Mutual pays off your listed accounts and issues settlement letters. For revolving credit accounts, you must close them yourself.

Pros of the Old Mutual Debt Consolidation Loan

This loan makes your life simpler by turning lots of repayments into just one fixed monthly payment. As a result, you’ll usually lower your total monthly instalments, easing your budget. In addition, you may be charged less in total admin fees compared to paying each loan separately.

Cons of the Old Mutual Debt Consolidation Loan

If you stretch the loan term too long, your total interest paid can be higher in the end, even if the monthly payments are lower. Preparing multiple documents can be a bit of a hassle for some people, and loans exceeding R250,000 are not available.

Verdict

Old Mutual’s Debt Consolidation Loan is a smart way to regain control over your finances if you have manageable debt and a fair credit score. Combining debt gives you one payment, making your money management easier. As always, compare offers carefully and consider opting for the shortest term you can comfortably afford, to save on interest over time.