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Debt consolidation explained
Loans & Credit

Debt consolidation explained

Turning multiple debts into one could make paying off loans more affordable and manageable, helping prevent your debt from spiralling out of control and giving you breathing room in your budget.

Here’s what you need to know about consolidating your debt.

Debt Consolidation 101

Debt Consolidation allows you to combine your debt into a single manageable loan, providing one single reduced monthly repayment.

How Debt consolidation works

Combining multiple balances into a new loan

A new loan reduces the number of credit obligations and how much you’re spending on interest

  • Credit card
  • Retail account
  • Student loans
  • Personal loans
Pay lower interest 

You can apply for a consolidation loan (secured) or take out a personal loan (unsecured) and potentially pay a lower interest rate.

The other debt is then paid off, and payments are made on the new loan.

Having a single monthly amount means you also pay less monthly in repayments, making it more affordable and lowering the overall cost of the loan, freeing up cash to make other payments to save and invest.


  • Manageable payments
  • Only pay off one loan amount
  • Frees up cash and improves your affordability
  • Can lower your interest rate


  • Get to the bottom of why you’re in debt.
  • Check your spending habits so you won’t be tempted to rack up more debt.  
  • Ensure you understand your potential new interest rate and whether there are additional fees involved.  
  • Have a plan about how you’re going to pay back the loan.  
  • Will you be able to keep up with the repayments?

Tools to help

Use our calculator to see how much you qualify for and estimate your repayments.

Learn More

Talk to us about the right debt consolidation solution for you.

Call us on 0860 111 400 or email us at [email protected]

Frequently asked asked questions
Who qualifies for debt consolidation?

To be considered for debt consolidation, you must have an income and be credit worthy.

Why should I consolidate my debt?

Debt consolidation won’t take away your debt, but it might make managing your debt easier. Paying a single loan instead of several means you only have one to repay with one interest amount. This could free up cash for other things, and you could pay less over the life of the loan than you would have for multiple loans.

How do I apply for debt consolidation?

As with normal loan applications, you can apply for a personal loan online or on our Banking App. You can also visit a branch or contact us directly on 0860 111 400 or at [email protected]

What do I need to apply for a debt consolidation loan?
  • ID
  • 3 months’ bank statements
  • Proof of employment
When should I consolidate my debt?

If you're struggling to keep up with multiple payments.

Will debt consolidation affect my credit score?

If you apply at multiple places, it will reflect negatively and might lower your credit score. Initially, it could also affect it because you are taking on more debt. However, once you pay off your debt and continue repaying your consolidated loan on time and in full, your credit score might reflect positively.