Debt Consolidation Vs Debt Consolidation Loan

The beginning of a new year is when many South Africans suffer the most. The years savings has been spent over the festive season, and with the holidays over, people are putting together the last of their funds. This means calculating what is it going to cost to pay the bills and living expenses for the rest of the month until the next pay-check, and hope that nothing unexpected comes up that will put them into more debt.

For this very reason, it is best to consider debt consolidation to help ease the weight of their debts over this time, and so that you can actually save some extra funds to accommodate those unforeseen circumstances that crop up.

But what is a debt consolidation loan?

Debt consolidation is a loan that combines all your unsecured loans, like personal loans, from various credit providers. If you consolidate your debt, you can immediately settle all your high-interest debts and close those accounts, leaving you with only one repayment per month to the credit provider.

But before you rush into getting a consolidation loan for bad credit, first weigh up the advantages and disadvantages of debt consolidation by contacting Debt Mate and speaking to one of our professional advisors to help you assess your financial standing and explain the different options we may have available for you.

The Difference Between a Consolidation Loan & Debt Consolidation on Debt Review

If you have a bad credit record and cannot afford to make regular payments, then a debt consolidation loan may not the best solution for you. It was designed for individuals who already have a handle on their debts and its management, but who would benefit from having a clean, simplified repayment process, for the purpose of making their lives easier and more structured but at the same time, you as a client will end up paying much higher interest with a Debt Consolidation Loan hence paying back much more than your initial balances to all your unsecured loans.

This is a convenient method to structure your Unsecured Debts & Secured Debts into a single manageable plan that will be easier to pay off, and may incur less interest over time depending on the terms negotiated by Debt Mate, saving you money that can maintain your financial status in the future and that is the alternatives to a Debt Consolidation Loan, and Debt Mate offers such a service, we call it Debt Counselling or Debt Review. Debt Counselling or Debt Review does all the things that a debt consolidation loan cannot do for you. As part of the process, Debt review will protect you, your credit profile from Black listing , and your assets from repossession and prevents credit providers from taking legal action against you while we represent you and regular payments are made. Debt Mate will help you become debt free, in a relatively risk-free manner. Contact Debt Mate today to find out if you qualify or to get debt advice from our professional consultants.