Debt consolidation, is the answer yes or no?

Debt consolidation yes or no
Debt consolidation could be the answer to your debt problems

Many people have been affected by recent economic struggles as a result of the way economies all around the world have been taking a knock.

This has meant that a lot of people are looking into ways to help lessen the financial burden that comes with monthly debt repayments. It has become different from a time when your finances were more free-flowing from month to month in comparison to the recent past.

If you are one of these people who has had a rough financial time recently and you too have been looking for a way to loosen that debt noose around your neck, then you most likely may have given debt consolidation a thought.

Before carrying on below, first, weigh up your current financial predicament. Draw up a mini-budget and take into consideration your current expenses in relation to your current income. This will help you to keep an open mind.

What exactly is Debt consolidation?

Debt consolidation is exactly that, it is the combining of all your monthly debt into one credit loan. It moves all your debt into one place, which means you only need to make one convenient debt repayment come month-end.

It is a loan that covers all your debt. And you just pay it back over a longer period of time, which allows you the benefit of making a smaller monthly repayment, instead of a few different payments that add up to moreover a shorter period of time.

Different aspects for you to consider

It has some negative aspects and some positive aspects, which we will consider below.


Many people have found these debt consolidation loans helpful for a number of compelling reasons such as:

  • The reduction of monthly debt repayment amounts.

This allows you to free up some cash for other things, instead of throwing it all into your monthly debt repayments 

  • It is a great opportunity to get your debt under control.

If you are feeling the pressure of financial strain due to multiple unaffordable monthly credit repayments, debt consolidation will greatly reduce the strain. Debt consolidation will allow you to get back on top of your credit and your credit score.

  • You will only need to make a total of one debt payment monthly.

This is great because it means that you only need to have one payment for all your debt, rather than having to pay all your accounts individually.

  • It makes it easier for you to budget for your expenses in accordance with your income

This is because of the single repayment, you will know exactly how much your single payment will cost, rather than adding all the individual ones together and maybe forgetting one. This is helpful for many families who struggle to keep a finger on the pulse of all the repayments at the end of the month.

  • This can be helpful because you can formulate a monthly debt repayment that will best suit your personal needs and lifestyle.

This is a great benefit for people with strict financial restraints.

Now, these are all great pros, however, it is important to seriously consider the cons as well before making a decision.


  • Your debt may be paid for you with a lower, more affordable monthly repayment, however, this does not mean you are paying less.

With the consolidation of your credit, you will be paying more for your credit than if you had to continue repaying all your credit accounts individually.

  • The repayment is less but over a longer-term.

You will have a more affordable monthly repayment amount but that does come at a cost, after all, there is no such thing as a free lunch. This cost lies in the fact that with a consolidated monthly amount comes a longer period.

  • Longer terms might also come with a higher interest rate.

You will be indebted to the consolidation loan institution for longer than if you were just paying the other debt repayments individually. This will affect your new credit agreements in the future.

Yes or No to the debt consolidation?

In conclusion, if you are currently struggling with your financial situation and you feel it is too difficult to keep your head above water, then it may be best to consider debt consolidation. After all, debt consolidation is a far better option than being blacklisted and ruining any possible new future opportunities to gain credit from credit lenders.

If you are also not worried about the repayment period and or the total amount that you are paying back in the long run, then considering a yes answer to debt consolidation may be a good thing to consider with your decision-making process.

It will allow you to be more fluid with your cash and allow you to ultimately build your savings in other areas which you deem important, based on your personal lifestyle. With your debt all in one place, you get to feel financial freedom and help you sleep well at night.

Also, if you are in a position to comfortably continue to make your monthly debt repayments within your current financial predicament without having to make too many drastic changes to your current way of life, then the answer to debt consolidation would be a good, solid no, considering the above answer of no.

Even if it means having to prioritize your current needs over wants and or cutting back in areas where your spending is unnecessarily too high, this would be the better option if your goal is to save more money in the long run.

Take a look once again at your mini-budget from the beginning and decide whether you should say yes or no to debt consolidation.

Popular & reliable direct lenders offering Consolidation loans

  1. FNB Consolidation loan


    • Loans up to R150,000
    • Term up to 60 months
    • Interest from 10.5%
  2. JustMoney Consolidation loan


    • Effective debt solutions
    • Asset protection
    • Reduced interest rates
  3. Negociate Consolidation loan


    • Reliable debt solutions
    • Free assessments
    • Term up to 84 months
  4. SA Home Loans Consolidation loan

    SA Home Loans

    • Loans up to R70,000
    • Term up to 30 years
    • Interest from 7.25%