Drowning in debts

Do you have multiple loan repayments that you cannot manage? Do you have several loans that leave you with little to no money at the end of each month? You may find it very easy to overlook your repayments to your creditors each month. With different loans and varying loan terms, you can easily mismanage your finances and possibly hurt your credit score. The costs may increase from penalty fees for late payments to paying multiple lenders monthly. Do you need a solution to reduce overall loan costs and save time? Debt consolidation may be the solution your looking for.

What exactly is debt consolidation?

So what exactly is a debt consolidation loan? To put it simply, think of debt consolidation as one large loan. This loan will cover the costs of all the previous loans you have taken out prior. So what are the benefits of this type of repayment plan? In this type of repayment structure, you have the benefit of only having to pay one loan. Additionally, this will also lower your monthly instalments. The creditor who will consolidate your debt will consider all your loans. They will then join all these loans into a singular yet larger loan. Additionally, this can also reduce your overall costs each month. These are the interest rate, monthly fees/admin fees, and your monthly instalments.

Why consolidate your debt?

Debt consolidation is ideal for those experiencing financial hardship and failing to honour their loan repayments. Those who have several loans to repay cannot manage all their accounts. Debt consolidation is a great way to restructure and possibly reduce monthly instalments. This is especially true for those who have several repayments to multiple accounts. With lower monthly instalments and interest rates, they could save additional funds. When one uses debt consolidation, they may find their monthly loan repayments more affordable. If you find yourself in such circumstances, debt consolidation may be the right solution.

How to qualify for debt consolidation?

Credit providers must verify specific requirements before offering you a loan. They will usually require three months’ worth of bank statements and perform what is known as a credit check. Additionally, they will assess your monthly income and any additional debt alongside your credit rating. Those with a respectable credit score will usually be offered a lower interest rate. However, those with a lower credit score may be subject to higher interest rates. With a lower credit score, creditors will deem you as a higher risk regarding loan repayment.

About Arcadia Finance

Secure a loan effortlessly with Arcadia Finance. Our platform allows you to complete a free application and receive loan offers from up to 10 lenders. We ensure the trustworthiness and compliance of all our lending partners with the regulations of the National Credit Regulator of South Africa.

How much do you need?
*Representative example: Estimated repayments of a loan of R30,000 over 36 months at a maximum interest rate including fees of 27,5% APR would be R1,232.82 per month. Arcadia Finance is an online loan broker and not a lender. Our service is free, and we work with NCR licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicants' credit score and other factors at the lender's discretion.

Loan amount R100 - R250,000. Repayment terms can range from 3 - 72 months. Minimum APR is 5% and maximum APR is 60%.