Consolidation loans for a low credit score in South Africa are available. But you have to make sure that you have some kind of collateral. Or that you have someone who can co-sign the loan forms with you.
Not all lenders in South Africa are willing or in a position to lend money to people with a low credit score.
We cannot guarantee any loans will get approval. Having said that you can try the following banks for consolidation loans when you have a low credit score:
- Standard Bank
- Capitec Bank
- African Bank
- Absa Bank
- Direct Axis
- Old Mutual Finance
If you are already in debt, borrowing money isn’t such a great idea. But if you desperately need financial aid and have run out of options then this is the route to go.
If you’re in Debt Consider Counselling
You could also go for financial counselling to get you through the emotional stress of financial trouble. Having debt and having a big red line through your name when it comes to having a low credit score.
If you don’t own a house, could someone who does, sign the forms for the consolidation loans for low credit with you?
Careful though. Because this means that if you do not pay your installments as you said you would, the other person will be held reliable. You can look for lenders on the Internet as this is the easiest route to go. But just be careful of scams.
Being in debt is not one of the best situations in South Africa and you want to get out of it as soon as possible. Therefore you will be happy to know that you do not have to own a house in order for you to be borrowing money.
Getting financial aid would be easier if you didn’t have debt already and you own your own house. But having bad credit and not having a house doesn’t mean it is impossible for you to get a loan. Just a little more difficult.
Although it might sound silly and unnecessary, it really does make a difference when you are able to talk to someone about it and take their advice.
Debt Consolidation Loans in South Africa
Debt consolidation loans in South Africa are offered to people to consolidate loans into one easy payment. Instead of many debt payments with many loans.
Payments are made on a monthly basis to a creditor that lends the money to the borrower.
Often consolidation loans are considered in the case of a borrower having multiple accounts and wanting to apply for just the single loan. To pay off those numerous debts and therefore be left with just the one monthly payment. And normally at a lower interest rate.
Consolidation Loans for a Low Credit Score can have advantages
Monthly repayments become more manageable. Because there is now only one payment to be made at a favorable interest rate. Instead of multiple accounts requiring multiple payments and you can save more.
Your monthly outflow is more comfortable if you qualify from a financial institute for a debt consolidation loan.
You can save money on the lower interest rates of having just the one loan instead of several payments.
Although there are advantages of consolidating all your debt into one easier to manage type of loan there is also the negative side of this type of borrowing.
These types of loans normally come at a much longer payback term than you may have had with your previous accounts. Which will mean that you will be in debt for a very long time.
Think things through very carefully. Before deciding to take the plunge and consolidate your debt into one bigger loan. Do your research.
And if you decide this is the best financial decision for you then do a search online for the various lenders that offer debt consolidation loans for low credit.
Debt Problems and Getting Assistance
When it comes to debt problems and getting assistance, there is counselling that can help you. As you will get all the relevant advice to help you work through your financial problems.
In some cases, depending on how severe the debt is. You might be advised to seek relief by making use of consolidation loans to pay your bills. But a professional might tell you that this is a bad decision. It all depends on how serious the situation is and what options you are left with.
This is why you should seek professional help. So that you can work through all the details and find out which is the best way out of your situation.
There are many options that need to be taken into consideration when you are looking for information on debt problems and getting assistance.
Consolidation loans are always an option, but that means you will be making more debt to pay off old debt, and how wise is that?
Unless it is your last resort and you have absolutely no other option. There are other ways of settling your bills.
What to Consider
By going for counselling you will be able to work through and learn how to deal with your financial problems. So that you can make sure this doesn’t happen again in the future.
Although it is good to get professional help and advice from someone who knows what they are talking about, they cannot prevent this same situation from repeating itself in the future. Only you can do that.
Being in debt isn’t something many people like to admit, but the sooner you realize that it is a problem. The sooner you can start working on getting it fixed.
Debt problems and getting assistance with it is vital. Even if you think you can get through it on your own, rather seek help.
This article can help you: Getting Help With Debt