Consolidate Your Debt
Take control of your finances with debt consolidation
Are you feeling the weight of multiple debts, juggling payments to different creditors, and watching interest rates chip away at your hard-earned cash? You’re not alone. Many South Africans are caught in the same situation, struggling to keep their heads above water. But here’s the good news: debt consolidation could be your lifeline.
By merging your debts into a single, manageable payment, you can regain control over your finances and ease the stress that comes with financial chaos. Imagine having a clear, structured plan that not only simplifies your payments but also reduces your interest rates. The funding for a consolidation loan is typically sourced through equity financing in your existing property, whereby the difference in the value of your fixed property over its mortgaged value is financed through a consolidation loan, to settle all your existing remaining loans into one management consolidated loan.
What is debt consolidation?
Debt consolidation is a financial strategy designed to help those burdened with multiple debts by merging them into a single loan. This approach simplifies your finances and often results in a lower interest rate than what you were previously paying across various debts. The process brings together a collection of multiple loans—credit cards, personal loans, or store accounts—into one cohesive, manageable consolidation loan. The beauty of this strategy lies in its simplicity. Instead of keeping track of numerous due dates and varying interest rates, you focus on one loan with a single monthly payment. This not only brings clarity and structure to your repayment plan but can also significantly reduce the stress associated with meeting multiple financial obligations.
Debt consolidation isn’t just for those who feel overwhelmed by their debts. It can also be a strategic choice for anyone looking to optimise their financial situation. By consolidating, you can improve your credit score over time, as consistent, on-time payments on a consolidated loan can reflect positively on your credit history. Plus, with a single payment to manage, you’re less likely to miss due dates and incur late fees, which can further impact your credit score.
Whether you’re drowning in debt or simply looking to streamline your financial obligations, debt consolidation offers a viable solution.
How to calculate the funds you need to achieve a debt consolidation outcome
See the example below to understand how to determine the value of your consolidation loan:
| Creditor # | Your Current Total Outstanding Debts | Your Current Monthly Repayments |
| 1 | R12,000.00 | R850.00 |
| 2 | R10,000.00 | R948.00 |
| 3 | R35,000.00 | R2,300.00 |
| 4 | R207,000.00 | R6,022.00 |
| 5 | R80,000.00 | R1,000.00 |
| Total | R344,000.00 | R11,120.00 |
| Creditor 1 |
|
| Your Current Total Outstanding Debts | Your Current Monthly Repayments |
| R12,000.00 | R850.00 |
| Creditor 2 | |
| Your Current Total Outstanding Debts | Your Current Monthly Repayments |
| R10,000.00 | R948.00 |
| Creditor 3 | |
| Your Current Total Outstanding Debts | Your Current Monthly Repayments |
| R35,000.00 | R2,300.00 |
| Creditor 4 | |
| Your Current Total Outstanding Debts | Your Current Monthly Repayments |
| R207,000.00 | R6,022.00 |
| Creditor 5 | |
| Your Current Total Outstanding Debts | Your Current Monthly Repayments |
| R80,000.00 | R1,000.00 |
| Total | |
| Your Current Total Outstanding Debts | Your Current Monthly Repayments |
| R344,000.00 | R11,120.00 |
In the example above, you would require a total of R344,000 to achieve a consolidation of all your debts.
Your repayment on a debt consolidation loan against your property based on the R344 000.00 calculated above and dependent on the interest rate of the new consolidation loan, will be a total repayment of approximately R3,000.00 per month, achieving a cash flow saving of R8,120 per month.
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Benefits of debt consolidation
The benefits of debt consolidation extend far beyond simply merging your debts into one. This approach can fundamentally change the way you manage your finances, providing you with the tools you need to succeed. By offering lower interest rates and monthly payments, debt consolidation can free up your cash flow, allowing you to allocate funds to other financial needs or savings. Moreover, by simplifying your repayment process, it removes the complexity and stress associated with managing multiple debts.
Lower Interest Rates And Monthly Payments
One of the most significant advantages of debt consolidation is the potential for lower interest rates. When you’re dealing with multiple debts, each one likely comes with its own interest rate, which can add up to a substantial amount over time. By consolidating these debts into a single loan with a lower interest rate, you can reduce your overall interest costs. This reduction not only saves you money each month but also accelerates your journey towards becoming debt-free.
Simplified Debt Repayment Process
Debt consolidation transforms a chaotic repayment schedule into a streamlined process. Instead of tracking multiple debts and their respective due dates, you’re left with a single monthly payment. This simplicity reduces the stress and confusion that often accompany the management of multiple loans. With a clear repayment plan, you’re less likely to miss payments, which helps maintain and even improve your credit score.
Bondfin Assist: Your partner in debt consolidation
When it comes to debt consolidation, having a reliable partner by your side can make all the difference. Bondfin Assist is your trusted ally in navigating the journey to financial freedom. With a comprehensive approach to debt consolidation, Bondfin Assist offers personalised solutions tailored to your specific financial situation. Our expert team works with you every step of the way, ensuring you receive the support and guidance needed to make informed decisions.
Bondfin Assist sources funds through reputable financial institutions, guaranteeing that your consolidation loan is backed by the leaders in commercial banking in South Africa. Our partnerships not only ensure the availability of funds but also provide you with the peace of mind that comes from working with a credible provider.
Guide to get a loan to consolidate your debts
If you’re looking for effective strategies to unlock cash, lower monthly expenses, and enhance your financial standing, consider these steps to consolidation to access available funds.
Be informed
Our consultants are available to assist you by calculating the potential amount and providing a detailed breakdown of what we can offer.
Select your preferred application option
- Apply online with your details and we will contact you.
- Call our Sales Contact Centre on 011 100 4777 to discuss your home loan solution needs with one of our specialist consultants.
Send us your documentation
Send us the required documentation. Thereafter your consultant will do the rest.
You’ll need to provide us with the following documentation:
If you are an employed individual:
- Proof of income: Payslips for the last 3 months. Whether you are weekly, fortnightly or monthly paid, the 3-month payslip requirement remains (for both applicants or all parties involved in the application, as applicable).
- Personal bank statements for the last 3 months from all active banking accounts (for both applicants if applicable).
- Mortgage loan statements for the past 12 months. (If the property is paid in full, a copy of the title deed.)
- For all loan amounts more than R1,500,000 a statement of personal assets and liabilities.
- Copy of your ID document (for both applicants if applicable).
- Copy of Marriage Certificate or ANC Contract (if applicable).
- Latest rates/levy statement/utility account statement.
Note* Only required for clients that are applying for a cash loan/refinancing home/property
If you are self-employed:
- Proof of income: Letter of Earnings from an Accountant (for all applicants, where applicable).
- Personal bank statements for the past 6 months (for all applicants if applicable).
- Personal assets and liabilities statement.
- Business bank statements for the past 6 months, for all active business banking accounts.
- Annual Financial Statements for the past 2 financial years.
- Where Annual Financial Statements are older than 6 months, current Management Accounts not older than 2 months signed by the applicant and accountant, in addition to the Annual Financial Statements.
- Copy of ID document (for all applicants, where applicable).
- Copy of Marriage Certificate or ANC Contract.
- Copy of Registration Documents or Trust Deed.
- Copy of Purchase Agreement. *
- 12 months bond statements or copy of title deeds.
- Latest rates/levy statement/utility account statement.
Property valuation
An expert appraiser will arrange an appointment to perform an assessment of the value in the property.
Sign a letter of acceptance
Once the application has been credit approved, we prepare a home loan proposal, called an LOA. This document details the costs, interest rate, indicative instalment and other important information for you to evaluate and sign.
Conveyancing
The national panel of attorneys that is on the bank’s panels will prepare all the necessary bond registration documents and will make an appointment with you to sign them.
Lodgement
The lodgement of bond registration is the next step and occurs immediately after the requisite documentation has been signed through the attorneys.
Await registration
Once your loan is registered against your property, we will continue to provide you with the same personalised service and attention, and all the while you are still living in your house/property.
Are you ready to register for a cash loan to consolidate your debts?
Contact us today to discuss your options with one of our trained staff members.
The process in registering a cash loan to consolidate your debts
If you’re exploring effective ways to access cash, reduce monthly expenses, and strengthen your financial position, consider these straightforward steps to refinancing and unlocking funds.
Step 1
The bond attorneys (appointed by the bank registering the bond) request the draft deed and guarantee requirements from the cancellation attorney (appointed by the bank cancelling our client’s existing bond). This information is forwarded to the Bond Attorneys, who then proceed to draft bond documents.
Step 2
Bond documents are drafted, signed by our client and the guarantees are forwarded to the cancellation attorneys to obtain consent for the cancellation from the client’s existing bank.
Step 3
Once all documents have been signed, the bond attorney arranges for lodgement of the documents.
Step 4
Once lodged, the Deeds Office takes approximately 4 – 6 working days to process the documents before registration takes place.
Step 5
Payment is made to our client on the date of registration of the loan against your property, in order for you to consolidate all your debts.
Delays could be caused by:
- Failure by the client to provide personal information.
- Failure by the client to provide details of the bank holding the existing bond.
- The existing bondholder not providing cancellation figures and title deeds to the transferring attorney.
- The client delays the signing of the bond documents.
Take the first step toward financial freedom today—consolidate your debt and stress less with our trusted solutions!