Bank Better, Live Better

the benefits of consolidating debt

Make debt repayment easier, reduce your total monthly repayment, and maintain and protect your good credit profile.

Article Image

The benefits

  • You have one monthly repayment amount instead of several individual ones
  • Your total monthly repayment will be less
  • You're less likely to miss a payment, helping you maintain a good credit profile and improve your credit score
  • Easy management when you use our app to view credit plan details and balances, and to make additional credit repayments
  • Personalised credit of up to R250 000 over 84 months
  • Affordable credit insurance on loans longer than 6 months

How it works

Suppose that you have 3 different store cards, and you’re paying off a car. Your minimum monthly payments leave you with almost no cash left to actually live.

One way to solve this problem would be to consolidate your debt. You take out one single loan, and use it to pay off all of your other loans, leaving you with one loan amount and payment every month.

Apply for credit in 3 easy ways

Things to remember

  • Your consolidation loan may have a longer term. That means you could end up paying more interest in the long run
  • If you consolidate short-term debt such as clothing accounts, it could take longer to pay off
  • Consolidation makes more money available. Avoid using this extra money as an excuse to take more credit, placing you in the same situation as before

Tip: Before you consolidate your debt, don’t just think about how much and for how long you’ll be paying. Look at all the costs involved when you take credit.

Was this article helpful?

you may also like...

View All Other Articles View All
work out loan affordability

work out loan affordability

Affordability is about how much money you have left after all your necessary expenses and financial obligations have been paid, which could be used to repay the loan you apply for.

Read More
travel better with your capitec credit card

travel better with your capitec credit card

Our credit card is your perfect travel partner, locally and abroad. Here are 5 ways it can help you bank better to live better.

Read More
The Credit Boot Camp part 3: Making good credit decisions

The Credit Boot Camp part 3: Making good credit decisions

In this instalment of The Credit Boot Camp, we’re going to talk about managing credit. As with anything in life, good habits are better than bad ones when it comes to debt.

Read More
The Credit Boot Camp part 9: 3 times you could say yes to more debt

The Credit Boot Camp part 9: 3 times you could say yes to more debt

We don’t like talking about our financial responsibilities, especially when it comes to debt. But, what if we told you there are certain instances when you should say yes to more debt? Intrigued? Read on.

Read More
View All Other Articles