How debt consolidation can help you move forward

How debt consolidation can help you move forward
How debt consolidation can help you move forward

There is nothing worse than running out of money before month-end. More than even before, South African consumers are cash strapped. The situation has become harder with the COVID-19 pandemic which has been devastating for the South African economy. There are several tips out there to prevent too much debt. Actions like avoiding owning multiple credit cards and doing research in debt traps will get you far. Yet, in most cases the best thing you can do is ask for professional help.

If you want to regain financial freedom, it may be time to seek financial assistance. One of our debt specialists Alain le Roux will explain how Cyber Finance can help you.

Debt consolidation

What is debt consolidation? It means taking a single loan to cover your total debt. This includes all your outstanding debts like credit cards, store cards, microloans, and personal loans. The advantage is that you only make a single monthly payment. This could give you a clear overview of your financial situation. On the other hand, it may become a debt trap for others. Note that there is no legal protection of your assets this way. If you miss a payment, you could lose your home, your car, or any movable property.

The advantages of debt consolidation

To decide whether loan consolidation is the right solution for you, you should speak to a professional financial adviser. Cyber Finance has multiple debt specialist ready to help you.

  1. Make a single easy monthly payment
  2. You don’t need to worry about paying or forgetting to pay every one of your creditors.
  3. In some cases, the consolidated loan instalment can be lower than the combined amount of the original payments

The disadvantages of debt consolidation

A Consolidation loan merely replaces your old debt with new debt. This is not the right solution if you are over indebted and struggling to make your payments every month.

  1. Lower Interest rates aren’t always so good
  2. It can lead to more debt.
  3. It will cost you more money.
  4. Consolidation loans doesn’t include all credit agreement.
  5. A consolidation loan doesn’t reduce your debt.

Conclusion

A debt consolidation can be a suitable solution in some cases. However, we advise you to always take your own situation in regard with a professional. Take your time to carefully consider every option listed above. When you are ready to regain financial freedom, contact one of our debt specialists for a free first consultation. At Cyber Finance, we can make you smile again.