Managing several debts at the same time can make personal finances more difficult to understand. Different accounts may have different repayment dates, interest charges, balances and monthly obligations.
For people in South Africa who are managing multiple forms of debt, debt consolidation is one option that may be worth researching. The basic idea is to combine multiple debts into a single repayment arrangement, depending on the available financial products and the borrower’s circumstances.
However, consolidation is not automatically the right solution for everyone. The overall cost, repayment period, fees, interest rate and eligibility requirements should all be considered before making a decision.