The Old Mutual Debt Consolidation Loan offers a practical way to simplify your finances. With this offer, you can combine all your existing credit cards, store accounts and personal loans into just one loan, reducing admin fees and the risk of missing payments. Loan amounts range up to R250,000, with repayment terms from 3 to 72 months. Interest rates are personalised and can go up to a maximum annual rate of 29.25%. Note that a once-off initiation fee and monthly admin fees apply.

Step-by-Step: How to Apply

Applying for the Old Mutual Debt Consolidation Loan is easy and accessible. You can start your application online, visit a branch, or call the service team. Prepare your ID, your latest payslip, and three months of recent bank statements. Once your application is approved, Old Mutual settles your listed accounts, and you can then close those for a fresh start with a single, manageable monthly repayment.

Pros of the Old Mutual Debt Consolidation Loan

Combining multiple debts means you only have to worry about one monthly repayment, greatly reducing mental strain and admin. The possibility of lower monthly instalments makes it easier to manage your budget. You also save on multiple monthly service fees and avoid penalty charges for missed payments. Flexible repayment terms mean you can choose the period that works best for your needs.

Cons of the Old Mutual Debt Consolidation Loan

Although monthly instalments may be lower, extending your repayment period means you could end up paying more in total interest and fees over time. You must actively close credit card and store accounts after consolidation, otherwise you risk building up new debts. Strict application requirements mean approval is not guaranteed, especially if your credit score has dropped.

Verdict

If you need a clear path to payoff and easier money management, Old Mutual’s Debt Consolidation Loan stands out in South Africa for its flexibility and straightforward process. As long as you’re mindful of the repayment terms and stay disciplined about not taking on fresh debt, this offer provides an excellent way to get back on track financially.