If you have ever been in debt before, then you will know what a stressful time this can be. For those who are facing the treat of blacklisting and legal action, poor credit records, inability to secure further loans and other implications of debt, debt consolidation loans offer the most effective way to manage your debts and strive towards a better financial future. How do these loans work, you may be wondering?
It’s simple – debt consolidation loans work by paying off your multiple loans, and giving you just one single loan to pay off. Better still, the loan repayments and interest rates for consolidated debt loans are much lower than you would be paying normally, and also help you clear your credit rating at the credit bureau to ensure that you do not get blacklisted.
These days, debt is something that almost every single person will experience at some point in their lives. With the huge cost of living, not to mention price inflations, lower income and the effects of the recession, debt is sometimes hard to avoid. If you have gotten into debt, don’t despair – there is a solution to help you pay off your debts while still being able to cover your living costs, and the good news is that anyone can take advantage of this solution.
Debt consolidations are regulated by the National Credit Act No.34 of 2005, making this one of the safest and most achievable debt management solutions in South Africa today. Find out how debt consolidation loans can change your life by completing the form below. A customer service representative will get back to you in 24 hours to discuss the best way to consolidate your debts.
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“Revealed: How Debt Consolidation Loans Work to Help?”
The way that debt consolidation loans work to help is simple – depending on your financial needs and current security or lack thereof, you will be given the loan that is best suited to your needs. If for example, you are a homeowner, then you will be able to use the equity of your property to apply for a consolidated loan to pay off your current debts, which can then be paid off by a second home-loan when you are able to qualify for one.
But even if you do not own property, you will still be able to request a consolidated loan to pay off all of your debts, consolidating them under one roof with less interest and lower repayment rates, clearing your credit rating in the process. This means that ANYONE and everyone can benefit from debt consolidation loans, regardless of their financial status.
The primary benefits that can be achieved from debt consolidation loans include:
- Debts paid off quickly at creditors
- Credit rating improved at credit bureau
- Blacklisting and legal action prevented
- Lower interest rates and lower loan repayments
- No need to approach dangerous loan sharks for help
- Chance to get debt-free for good
“Who Benefits from Debt Consolidation Loans?”
Anyone who is currently in debt, who wants to clear this debt and prevent blacklisting, bad credit records and other consequences of debt will benefit from debt consolidation loans. Many people who get into debt often assume that because they do not own property, they will not be able to secure a loan to help them pay off their debts.
This misconception is one of the most dangerous myths in the loan business, resulting in many people not knowing how to get themselves out of debt. If debt is not managed quickly, it can soon become a much bigger problem, resulting in people becoming over-indebted. Blacklisting, legal action, assets being seized and even home or vehicle repossession are all extremely real consequences that arise when things get to this point.
Each and every consumer will benefit from debt consolidation loans, whatever their current status may be.
1. If you are not a property owner…
Unsecured Debt Consolidation allows you to pay off up to 5 current debts and have just one single account to pay off. Debts are paid directly to the debtors within 10 to 14 working days. This option has a minimum limit of R10, 000 and no maximum limit, with a loan term of 24 to 60 months.
2. If you are a property owner…
Secured Debt Consolidation allows homeowners with sufficient equity on their property, who can afford to take out a second loan against their property but are unable to do so due to bad credit records, to pay off all existing loans. Once a second home loan is approved, then this debt is paid off by the home loan. This option has a minimum limit is R30, 000, and the maximum limit is determined based on income and equity of property.
Debt is a very real and very risky problem if left unchecked. Don’t wait until it’s too late to take the first steps towards clearing your debt – with consolidated loans, you will be able to get peace of mind knowing that you are on the right path to financial freedom, whatever your current finances may be.
To learn more about the debt consolidation loans that are best for your needs, simply complete the form below to have a customer service representative get back to you within 24 hours. Take control of your life, and contact us right now to find out how we can help you.