Feeling overwhelmed by juggling numerous loan repayments each month? The Old Mutual Debt Consolidation Loan lets you merge multiple debts into one easy-to-manage monthly payment. With loan amounts up to R250,000 and flexible terms from 3 to 72 months, this option makes your finances more predictable and your life less stressful.

The interest rate can vary (with a maximum interest fixed at 29.25% per year), and there are once-off initiation and monthly admin fees. Requirements include being a South African citizen, at least 18 years old, and providing your ID, three months’ recent bank statements, and your latest payslip.

How to apply step by step

Applying for an Old Mutual consolidation loan is straightforward. Start with an online application, phone call, or visit a branch. Complete their application form with your personal and financial details. List all your outstanding debts you want consolidated. Attach the required documents. Once approved, Old Mutual pays your creditors directly and sends settlement letters as proof. Ensure you close your credit and store accounts to avoid falling back into debt.

What we like

One huge plus is the potential for lower monthly instalments, making it easier to fit repayments into your budget. There’s also far less admin, as you’re now making one payment instead of many. Old Mutual’s process is efficient, and the loan term flexibility is ideal for different financial circumstances. The maximum amount of up to R250,000 allows for consolidating substantial debts.

What we don’t like

Be aware that extending the loan term can lead to paying more interest and fees over time. Also, closing paid-up credit accounts requires your own effort—failure to do so may risk future debt problems. Initiation and admin fees, plus variable rates, can add to the total loan cost.

Our verdict

If you are struggling to keep track of multiple debts or need reduced monthly repayments, Old Mutual’s Debt Consolidation Loan is a practical solution. It’s user-friendly and flexible, making consolidation straightforward. But, consider the total cost and remember to close your original accounts.