“To See If You Qualify For Debt Consolidation, Please Complete The Form on The Bottom of This Page!”
If you were searching for Debt Consolidation loans on Google, or just browsing the internet for loans to pay off your debt, then you’ve come to the right place. Debt Consolidation loans are probably the best option to take when you have overextended yourself on expensive debt, such as credit cards, overdrafts and personal loans.
There are many other ways that you can have your debt consolidated down into one monthly payment. The most popular way is by taking all your high interest loans and converting them into a single lower interest loan, i.e. you will be consolidating all your existing debts into one big loan. This has the benefit of decreasing your monthly payments significantly, and at the same time getting all your creditors off your back.
Another plan for consolidating your debt by taking out a loan is to apply for a second bond on your home. This means you will have to own property. As with all big loans, you need to have collateral and in this case, it being your property. This is called a secured loan, because the lending company is covered. Taking out a second bond on your home is a perfect way of consolidating your debt; and it works! You can get a loan of up to the current market value of your home.
There are always pros and cons in taking out Debt Consolidation loans. There are lending companies that are prepared to assist you even if you are blacklisted, however the interest rate is much higher due to the risks taken. The non-blacklisted persons who want to apply for Debt Consolidation loans are fortunately in a position where they can apply at their own bank and get a better interest rate.
Something that you need to be aware of is that when you are in a position where you become desperate for financial assistance, you can easily get done in by loan sharks. They charge a very high interest rate (usually up to 50 % or more), and often target individuals who have been declined at most other lending companies. Take note that most loan sharks are not regulated by the NCR.
When applying for Debt Consolidation loans, the lending companies will almost certainly do credit checks with the credit bureaus, to see what your credit rating is. They will also verify with your employer that you are indeed employed with them, and earning a fixed monthly salary. They will also ask you for a list of your assets and expenses. In this way they can determine your affordability.
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Then of course they have to adhere to certain set qualifying criteria, such as:
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–> You must have an income and earn a fixed monthly salary – self-employed persons cannot be assisted with Debt Consolidation loans.
–> Your salary must be paid into your bank account – no cash payments allowed.
–> You may have a poor credit history, i.e. judgments and defaults on your credit record. However individuals that have a judgment over their bond cannot be assisted with Debt Consolidation loans.
–> You must be a South African citizen and live in your own home (your home cannot be rented out unless occupied by a family member).
–> You must not be under debt counseling or administration. In most cases for Debt Consolidation loans you must be a home owner.
–> The outstanding balance on your bond (if you have one) must be less than 65% of the value of your home. Available equity used for collateral is 65 %.
The question now is, will Debt Consolidation be the best way to deal with your immediate financial situation? If you have debt with a lot of different creditors, and all the interest charged adds up to 50 % or more, then you know Debt Consolidation loans can be the best option for you. It makes sense to pay off one creditor rather than six or seven, and it could very well be that you are overdue on some of these accounts as well.
All this adds to your stress levels and can cause problems in your family. The good news is that you can do something about it.
Firstly, if you think you are blacklisted, you should consider finding out what your credit rating is. Some lending companies offer a free credit report, but this is usually only with one credit bureau. It is best to pay a small once-off fee to get a full credit report from all three credit bureaus. Reason being some of your creditors may have only blacklisted you with one credit bureau.
Once you know where you stand with your credit rating, you can move forward. The outcome will then determine which bank or lending company you should apply with.
It is always better to apply with your own bank first, however certain lending companies specialize in Debt Consolidation loans, and require that you own a home and have 65 % equity on your property. The interest is a lot lower since you would be taking out a second bond on your home to consolidate your debt.
Should you have then checked out, and feel comfortable with the lending company you have decided on, the next step is to complete an application form and provide all the necessary supporting documentation. It should not take longer than 3-5 days for approval once you have submitted your application.
Debt Consolidation loans allow you to feel better about your monthly debt repayments. Yes you might end up taking longer to pay off the loan, but we trust that as your financial situation improves, you pay more on your loan per month, thus paying it off faster and saving on interest. With one loan to pay off every month, you can start living again and enjoy some of the things you had to cancel; such as DSTV, dinners out or takeaways, gym and time away with your family.
You can do it – its just a matter of making that important decision. We can assist you straight away. If you have been declined with other companies, don’t fear, there is always hope and always a way out. It just takes a bit of discipline in the beginning – you need to stop spending, pay off as much of your debt as possible, and if you need to clear your name, we can assist you with that as well.