A consolidation loan could improve your 2020 finances

It’s January. The New Year’s festivities are a fading memory, but the avalanche of bills is probably giving you a nasty headache. School fees, uniform, stationary, data, debts… at times, you’ll wish you could just hide under a rock and pretend that none of them exist. Can you relate?

Wouldn’t it be easier if you just had one bill or debit order each month? Well, the good news is, you can. The answer is: consolidation loans.

What is debt consolidation?

If you’re determined to face your debt with discipline, a debt consolidation loan is a powerful tool that could pave the way for a healthier financial future. It’s a fantastic way to simplify your finances, especially now, at the start of the new year. So how does debt consolidation work? With it, you can turn a couple of loan payments into one, usually lower, payment. This means more money each month for you to either pay off other debts, cover expenses or invest.

An important thing to consider is that not all debts can be consolidated. So, which debts can you consolidate? We explain these for you below.

  1. Student loans: Many students take out a new loan every semester to help cover tuition, fees and other costs. Should you have student loans in your name, a consolidation loan might be worth considering.
  2. Credit cards: You can build a solid plan to get rid of credit card debt once and for all, and debt consolidation might help you to reach your goal sooner.
  3. Personal loans: Whether you’re trying to simplify your finances or get out of debt quicker, it might make sense to consolidate high-interest personal loans as well. If you’ve taken out personal loans in the past, you might be able to save money on interest by securing a new loan with a lower interest rate.

Who should consolidate their debts?

Consolidation loans aren’t for everyone. It requires the discipline to stay within your means and resist the temptation to take on more debt. The main reason you would consolidate your debts is because you can barely keep up with your monthly payments. That’s when a consolidation loan can be a valuable tool in getting your finances on track for the year 2020.

Ready to apply for an African Bank Consolidation Loan? It’s a quick and easy process to apply for one, and you can upload your documents through our website. Click here to get started. These are the documents you’ll need: 

  1. Identity document
  2. Latest payslip
  3. Latest bank statement reflecting three salary deposits

Debt consolidation loans for bad credit isn’t a magic wand that also makes bad financial decisions disappear. However, when used properly, it can play an instrumental role in improving your finances, your credit record, and ultimately, your ability to achieve your financial goals.

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