If you find it hard juggling multiple monthly payments across credit cards, store cards, and loans, Old Mutual’s Debt Consolidation Loan might be the helping hand you’re looking for. This flexible loan offers the opportunity to settle your various debts and replace them with a single manageable monthly repayment.

You can borrow up to R250,000 with loan terms ranging from 3 months up to 72 months. Interest rates are capped at 29.25% per annum, and there’s a required once-off initiation fee along with monthly admin fees. You must be a South African citizen, over 18, and provide an ID, recent payslip, and three months’ bank statements.

How to Apply: Step-by-Step

• Gather your ID, latest payslip, and 3 months’ bank statements.
• List all debts you want to consolidate.
• Submit your application online, by phone, or at a branch.
• Upon approval, Old Mutual pays chosen debts, issuing settlement letters.
• Close any open revolving accounts yourself for stricter debt control.

Pros of Old Mutual Debt Consolidation Loan

Old Mutual’s debt consolidation plan streamlines your monthly finances, reducing admin and the hassle of juggling several repayments. This can offer significant stress relief for many borrowers.

A single repayment is easier to manage and may reduce your total monthly outflow, giving you more flexibility and breathing space in your monthly budget.

Cons of Old Mutual Debt Consolidation Loan

If you extend the repayment term, you may end up paying more interest and fees over time, even if your monthly instalments drop. This is a common downside with all debt consolidation loans.

Additionally, you are responsible for closing any store cards or revolving credit facilities. Failure to do so could result in the temptation to take on more debt.

Verdict

Old Mutual’s Debt Consolidation Loan is ideal for those needing a simpler way to manage various debts and potentially lower monthly obligations. If you qualify and can stick to a disciplined repayment plan, this solution can support you in regaining financial foothold. As always, carefully assess terms and be diligent in managing your closed accounts to ensure true long-term benefit.