If you have multiple credit cards, store accounts, or personal loans, the Old Mutual Debt Consolidation Loan could make your finances easier to manage. Loan amounts available are up to R250,000, and repayment terms are flexible, ranging from 3 to 72 months. Interest is calculated monthly, and a once-off initiation fee and an admin fee apply. The maximum interest rate is 29.25% annually.

This consolidation loan gives you the option to merge various debts into a single loan, often resulting in lower monthly instalments. By streamlining your repayments, you gain a clearer overview of your money flow and reduce the risk of missing payment deadlines.

How to Apply for Old Mutual Debt Consolidation Loan

To apply, you must be at least 18 years old and a South African citizen. Required documents include a valid ID, your latest payslip, and three months’ bank statements. You can apply online, visit a branch, or phone Old Mutual directly to start the process.

Pros of the Old Mutual Debt Consolidation Loan

Combining your debts into a single loan means less admin and a more manageable monthly payment. Having a centralised repayment can also help you avoid late fees or missed payments, contributing positively to your credit score over time.

Lowered monthly instalments are a key benefit, making personal budgeting much more straightforward. The transparent fee structure also means no hidden surprises when it comes to costs.

Cons of the Old Mutual Debt Consolidation Loan

You may end up paying more in interest and fees over the life of the loan if you stretch repayment over a longer period. It’s important to close revolving credit accounts once consolidated, or you risk building new debt.

Additionally, you need a reasonably good credit score to qualify for consolidation. Those with poor credit may not be eligible and could require debt counselling instead.

Final Verdict

Old Mutual’s Debt Consolidation Loan is a practical solution for South Africans looking to simplify their repayment schedule. If your credit is in good standing and you want to streamline your finances, this could be a convenient choice. However, always check your total repayment amount before accepting new terms, making sure it suits your financial goals.