The Old Mutual Debt Consolidation Loan is designed for South Africans who are juggling multiple repayments across credit cards, store accounts, and personal loans. With amounts up to R250 000 and repayment periods from 3 to 72 months, this offering allows borrowers to combine their various debts into one single loan. Old Mutual settles your listed debts, and you repay them at competitive rates, with maximum interest up to 29.25% annually. There is a once-off initiation fee and a monthly admin charge, so be sure to factor these in when calculating affordability.

How to Apply: Step by Step

1. Ensure you are over 18, a South African citizen, and have your ID document ready.

2. Collect three months’ recent bank statements and your latest payslip.

3. Apply online, by phone, or in a branch, requesting debt consolidation specifically.

4. List all accounts you want Old Mutual to settle as part of your application.

5. On approval, Old Mutual pays out your listed debts, and you start with one manageable monthly repayment.

Pros of the Old Mutual Debt Consolidation Loan

Consolidating your debts greatly simplifies your finances: with just one account to manage, you reduce the risk of missing payments. There is also the possibility of lower monthly instalments, giving your budget more breathing room each month, provided you qualify for favourable rates and terms.

Another benefit is potentially lower admin fees, as dealing with many credit providers means paying more in monthly fixed charges. Combining everything under a single provider reduces your total admin costs.

Cons of the Old Mutual Debt Consolidation Loan

If you extend your repayment term to lower your monthly instalments, you may pay more overall in interest and admin fees. It’s essential to consider this trade-off before proceeding.

Also, not closing old store or credit card accounts after consolidation can lead to the temptation of new debt, which may worsen your financial situation if not handled responsibly.

Our Verdict

The Old Mutual Debt Consolidation Loan is a practical and professional solution for South Africans who want to streamline debt repayments and possibly reduce monthly outgoings. The application process is simple, and the loan amounts and terms are flexible enough to suit diverse needs. Remember, responsible debt management and keeping repayments affordable should always take priority to get the most value from this service.