Publish Date: 11/07/2018
Putting all your debt in one loan basket
If you landed on this informative blog because you Googled how to get out of debt you are one of millions of people who are asking that same question.
A consolidation loan is also a common topic searched on the internet by people looking for advice on debt management.
A recent article, SA plagued by personal debt, on News24.com, states South Africans are “being crushed under the weight of personal debt, with consumer debt totalling nearly R1,7-trillion - nearly as much as the government’s debt of more than R2-trillion.”
In addition, the article talks about South Africans neglecting to save money, with World Bank research indicting as many as one third of adults do not dedicate any money toward savings.
You may identify with this and be feeling that you are drowning in debt.
Your question is how do I consolidate my debt?
Let’s look at what debt consolidation is.
Simply put, this is the opportunity to combine all your debt into one single loan.
The African Bank consolidation loan allows you to bundle up to five loans into one single consolidation loan of up to R250 000 and get one repayment.
For example, if you take out a loan of R250 000, you can settle all your debt – should this be, for example, three store credit cards and two bank credit cards – and then only have to worry about the one easy monthly repayment back to the bank which granted you the loan.
The advantage of this type of loan is that it can help to lower the total cost of credit and help you to pay off debt faster. The other bonus is that you now only have to worry about one repayment a month which means you will be less likely to make a late payment.
While consolidating your debt is a good way to move out of the debt trap, it is wise to reflect on your spending habits and avoid falling back into debt.
If you are one of those people desperate for a get out of debt plan, it is important to understand the basics of debt management and how you got into this situation in the first place.
No matter what your financial situation, you will benefit from sticking to a budget.
4 things a budget will help you do:
Debt can be managed well with simple financial tools, such as budgeting.
It is also often a case of breaking it down into manageable chunks and viewing it this way instead of as one huge imposing mountain you cannot surpass. This informative African Bank blog offers more insight on how to do this.
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.