For many South Africans, consolidating debt has become a necessary step toward financial stability. Rising living costs, unexpected expenses, and economic uncertainty have left thousands juggling multiple debt repayments every month. The idea of debt consolidation sounds appealing—simplifying multiple payments into one. But what if there was a way to do this without taking another loan?

The Hidden Pitfalls of Debt Consolidation Loans

Traditional debt consolidation often involves taking out a new loan to settle existing debts. While this sounds like a solution, it often leads to further financial strain. Here’s why:

• High Interest Rates – Debt consolidation loans often come with high-interest rates, particularly if your credit score has already been impacted by missed payments.
• Longer Repayment Terms – While your monthly installment may be lower, you could end up paying more over time due to extended repayment terms.
• Risk of Further Debt – By settling your debts with a new loan, you might free up credit on store cards or credit facilities, increasing the temptation to borrow again.

The Alternative: Debt Review – Consolidating Debt Without a Loan

A lesser-known but highly effective way to consolidate debt is through debt review. This legal process, regulated by the National Credit Regulator (NCR), restructures your existing debt into one manageable monthly payment—without the need for a new loan.

How Does Debt Review Work?

1. A Debt Counsellor Assesses Your Finances – A qualified debt counsellor will review your income, expenses, and debt obligations.
2. A New, Affordable Payment Plan is Structured – Instead of paying multiple creditors separately, your debt is restructured into one affordable monthly installment.
3. Your Interest Rates Are Negotiated – Credit providers may agree to lower interest rates, reducing the total amount payable over time.
4. You Are Protected from Legal Action – Once under debt review, you are legally protected from creditor harassment and repossession threats.

The Benefits of Debt Review Over Traditional Debt Consolidation

• No New Loan Needed – Unlike traditional debt consolidation, you don’t take on more debt.
• Legal Protection – Once under debt review, your assets are safeguarded from repossession.
• Fixed, Single Monthly Payment – No more juggling multiple creditors.
• Debt-Free Plan – Unlike a consolidation loan that may extend your repayment period, debt review has a clear roadmap to becoming debt-free.

Who Qualifies for Debt Review?

If you are struggling to keep up with monthly debt repayments and have a stable income, you may qualify for debt review. It is designed for individuals who want to take control of their finances but need assistance consolidating debt into a structured, manageable plan.

If your debt feels overwhelming, there is a solution that doesn’t involve taking out another loan. Debt review can help you with debt consolidation into one affordable installment while protecting you from legal action.

Take the first step towards financial freedom today! Get a free debt assessment and credit check to see if you qualify.