Studies have shown that South Africans spend up to 76% of their income settling debt. Staying above float during challenging financial times is becoming more difficult. At times, juggling numerous debt repayments can cause a lot of stress which is why debt consolidation may be an ideal method of nipping these habits in the bud.
Debt consolidation is a cost-effective way of settling debt. By combining multiple debts into one payment, individuals are given a temporary reprieve. A South African banking institution which has endeavoured to provide its clients with the best financial solutions is African Bank. One of its services is its Debt Consolidation Loan.
This solution has been designed to allow clients to focus and keep track of a single loan repayment. African Bank’s Consolidation loan is not only offered to individuals, but to business owners and businesses as well.
African Bank provides R1500 to R180 000 in finance for clients to consolidate their debts. They have the benefit of low monthly repayments and low interest rates.
This simplified payment method can result in an improved credit profile for the client. As a responsible lender, African Bank has included Credit Life Insurance which is a fee calculated at the time of the application and included in the fixed monthly installment.
This covers repayment of the remaining loan amount in cases of death, illness or disability. African Bank’s debt consolidation loan is a viable credit management product for individuals who want to salvage their credit ratings and ensure that they settle all their outstanding debt.