If you’re struggling to keep up with several monthly repayments, the Old Mutual Debt Consolidation Loan might be the lifeline you need. This independent review covers key highlights: you can borrow up to R250,000, with repayment periods ranging from 3 to 72 months, and competitive interest rates capped at 28% per annum. There is a once-off initiation fee and monthly admin costs, but you’re consolidating your existing payments into a single, easier-to-manage loan.

How to Apply

First, list all debts you aim to settle with your consolidation loan. Next, submit an online application, visit an Old Mutual branch, or call the contact centre. Upon successful approval, Old Mutual will pay off your selected accounts and supply you with confirmation. Applicants must be over 18, South African citizens, and provide their ID, three months’ recent bank statements, and latest payslip.

Pros

The main advantage is simplification – you’ll only track a single repayment each month. Additionally, consolidation may lower your admin fees and monthly instalments, resulting in more breathing room for your budget.

Cons

A longer repayment period could mean paying more interest over the life of the loan, even if your monthly payment drops. Closing revolving accounts is a requirement, so you won’t have immediate access to future credit through those channels.

Our Verdict

Old Mutual’s consolidation loan offers a streamlined way to manage debt, especially for those juggling many accounts. It’s a solid, regulated option if you meet all requirements and want one monthly repayment. However, always weigh extra total costs against your financial comfort before applying.