27 Jun Consolidation Loan vs Debt Review
You have fallen into Debt! With the rising cost of living who can blame you? What is your options? Consolidation Loan? Debt Review (Debt Counselling)?
Let’s compare the two options.
Meet Miss G. She earns a Nett Income of R7 500 per month and must pay R6 005.28 per month on her debt instalments. As you can imagine Miss G was struggling monthly to put food on her table. She had to get out of her debt situation as soon as possible.
To settle her debt, she needed a consolidation loan of R45 772.58.
The problem was that she was already over-indebted and couldn’t qualify for another loan.
Her only option was Debt Review.
Now to compare.
If Miss G could qualify for a consolidation loan of R45 772.58 her payment per month would have been R2 871.50 per month for a period of 24 months with an interest rate of 27.5%. She would have paid back a total amount of R68 916.00 over the 24-month period.
This is how Debt Review helped Miss G.
Firstly, we negotiated with her creditors to reduce her monthly instalments from R6 005.28 to R3 176.41 per month and her average interest rate from 24.55% to 9.68%. She settled her debt within 19 months. Want to guess how much she paid to her creditors over that 19 months period? Only R51 456.62.
Now compare that to the consolidation loan total repayment. She saved a massive amount of R17 459.38 on interest and monthly fees.
Consolidation Loan or Debt Review?
Which one is better?
You can decide…