We are going to be looking at these types of loans in closer detail today, since more and more people are looking into these consolidation loans as a way to get some debt relief and choose the best option available out there to get out of debt.
Consolidation loans these days are offered by various financial companies and not just banks anymore and you can find loads of information online related to this product. We are going to be providing you with an objective overview; so that you know exactly what you are in for and how to plan to make sure that you are able to afford this type of loan.
There are various companies that offer consolidation loans and the common feature is that you basically apply for a loan that will enable you to pay all your creditors and thus only pay one instalment monthly, till your loan amount has been repaid in full plus interest.
Generally these loan amounts vary, but we have seen through our research that companies offer the loans for people up to R250 000, since the debt people have vary drastically since it can be anything from credit cards, store accounts to loans that they might have taken out.
The feeling of having various accounts that all have different interest rates can really get someone in debt down and that is why consolidation loans enable people to only have 1 instalment with 1 interest rate that they need to discuss with the financial institution in order to make sure that they are able to afford it monthly.
We will be reviewing all the consolidation companies in the coming weeks to follow, so be sure to check back soon to get all the information and best deals in South Africa, related to consolidation loans.