How Consolidation Loans Work

South Africans with tight budgets are constantly feeling the pressure of inflation and fluctuating interest rates, which directly impact their loan repayments. A Debt Consolidation Loan relieves this pressure and is taken out to pay off numerous smaller loans. By doing so, consumers only have one monthly repayment to be concerned about, while typically this type of loan has more reasonable interest rates and longer repayment terms, allowing for breathing room in your budget.

When it comes to how consolidation loan works, this process of debt refinancing as a one-repayment loan can be done as a secured or unsecured loan. If secured, the amount you are borrowing is secured against an asset such as a vehicle or home – this option helps blacklisted individuals or those with bad credit. If you fail to honour the payments for your secured Consolidation Loan, you risk losing that asset. If your Consolidation Loan is unsecured, it is much the same as a personal loan and you risk damaging your credit score if you miss any payments.

Debt Consolidation Loans will allow you to Re Finance all your loans quickly and legally, while many struggling consumers find it easier to manage one monthly payment instead of juggling various commitments. Since interest rates can cause you to repay higher amounts than you may have bargained for, it helps to have just one interest rate to worry about, instead of trying to navigate the interest rates attached to each of your debts. At Ezi Finance, we know how consolidation loans work for you and can help you make the right decisions, according to your finances.

We always advise clients who fear falling behind on debt to consider options for debt rehabilitation, or debt refinancing. By taking a closer look at what your debt is costing you each month, and also understanding what you’re paying towards interest, you should be able to compare it to your affordability and see if it’s feasible. It’s especially important to look at an option like Debt Consolidation if your income has changed and can no longer accommodate various monthly debt repayments according to the agreements in place.

Safeguard your credit score and protect yourself by taking steps to ease your financial burdens. How Debt Consolidation works is by giving you the chance to pay off what you owe without missing payments. Let Ezi Finance assist you with Consolidation Loans you can trust, according to the debts you are facing. Contact us today to begin the application process for a Debt Consolidation loan, and count on us for expert insight along the way.

Apply for a Consolidation Loan by Completing the form below: