If juggling various repayments feels overwhelming, the Old Mutual Debt Consolidation Loan could be a practical option. This loan lets you consolidate all your credit – such as credit cards, store accounts, and personal loans – into one manageable monthly payment. You could access up to R250,000, with flexible repayment terms ranging from 3 to 72 months. Interest rates reach up to 29.25% annually, and expect a once-off initiation and monthly admin fee.

How to Apply: Step by Step

1. Check you meet the requirements: SA citizen, over 18, with proof of income.
2. Gather your ID, latest payslip, and 3 months’ bank statements.
3. Choose your application method: online, in branch, or by phone.
4. Specify the debts you wish to consolidate during application.
5. Once accepted, Old Mutual will settle your listed debts.

Pros of Old Mutual Debt Consolidation Loan

The biggest advantage is streamlined repayments: you’ll only have one loan to concern yourself with each month. This helps prevent missed payments and confusion.

Lower monthly instalments are possible, and you could also reduce your overall admin fees. The process is straightforward, and approval may be fast if you provide all documentation upfront.

Cons of Old Mutual Debt Consolidation Loan

While monthly repayments can be lower, stretching your loan over a longer term may cost you more in interest overall. The maximum rate is relatively high.

Some accounts, like revolving credit, require you to close them yourself after consolidation. You must stay disciplined to avoid taking on new debt again.

Our Verdict

The Old Mutual Debt Consolidation Loan is a solid choice if you want to regain control and simplify your finances. It’s especially suitable if you have a steady income and are determined to become debt-free.

Just remember to compare total costs and loan terms to ensure you’ll actually save over time. Use this as a tool for a fresh financial start.