If you’re feeling overwhelmed by several loan repayments and admin fees, the Old Mutual Debt Consolidation Loan could make your finances far more manageable. This loan is structured to bring together all your outstanding debts – including credit cards, store accounts, and personal loans – into one simple monthly payment.

The interest rate is dependent on your credit profile, with the maximum annual rate capped at 29.25% per year. Loan amounts range from up to R250,000 and you can choose a repayment term between 3 and 72 months. Additional administrative and initiation fees apply, so it’s wise to check the total repayment cost before applying.

How to Apply for the Old Mutual Debt Consolidation Loan

• Gather your South African ID, recent payslip, and three months’ bank statements.
• Begin your application online, by phone, or at a branch.
• Specify the debts you want to settle and request a consolidation offer.
• Upon approval, Old Mutual will pay your selected creditors directly for most debts.
• Confirm closure of paid-up revolving credit accounts to avoid further debt.

Advantages

This consolidation loan makes budgeting more straightforward. Instead of juggling multiple payment dates and fees, all your debts become one easy-to-track payment, simplifying money management.

The potential to lower your monthly instalment is another key benefit, especially if you stretch out the repayment period. Fewer admin charges also help save money each month.

Disadvantages

Stretching your loan term to lower the monthly instalment can result in paying more in fees and interest over time, increasing your total cost.

Some accounts—especially revolving credit accounts—need to be closed manually once settled, meaning there’s a risk of accumulating new debt if not managed correctly.

Verdict

The Old Mutual Debt Consolidation Loan is a strong option if you need relief from complicated, multiple loan repayments. It works best for people with a good credit profile who want simplicity and potentially reduced monthly admin.