There are a number of ways debt consolidation loans have helped people and it is by helping people not to default on the debt payments of get a bad credit record. A debt consolidation loan puts together all your debts so that you can pay off your debts and breathe a little easier the next few months.
A debt consolidation loan differs from a personal loan in that this can be large amounts of cash at your disposal. The interest rate is often lower and is payable over a longer period of time than a personal loan.
How else can they help individuals?
– By putting your debt in one manageable loan.
– By reducing the risk of defaulting on your high interest rate loans
– By having one major loan to service you are less likely to be seen as a high risk by credit providers
– By reducing the amount payable each month, you can breathe easier because you have a set budget that services the loan
You will have to consider a few things before rushing out to find yourself a consolidation loan, and this includes what the loan is for and how much you need in order to cover your existing loans.
Personal loans are available even if you have bad credit. The issue most people with bad credit have is that they are afraid of getting rejected by the big banks like FNB and Absa when they apply for personal loans.
The good news is that banks are not the be all and end all of creditors, other institutions also provide loans for people with bad credit. These independent companies are also registered credit providers and help people with personal loans. A quick search on the internet reveals countless number of credit providers willing to help.
What help is there for people with bad credit records?
You can put through an online loan application for people with bad credit and get a reply within the same day. They will assess your credit score and see how much you qualify for. The qualification is often stringent as they will have to assess your expenses as per NCR’s rules.
Make sure you qualify by making sure of the following:
• You must be permanently employed
• You must be a permanent resident of South Africa
• You must be between 18 and 65 years old
• You must have a monthly take home of a reasonable amount after all your monthly financial obligations including the newly added consolidation loan
• A salary that has been deposited into the same account for more than 3 months
How much do you qualify to get a personal loan for?
You can get as much as R 200,000 if you can show you are able to qualify for the personal loan. It also can be as little as R 1,000 if that will help you through the month. It also depends on the reason you give for requesting the loan. If you can prove why you would like the loan you can get as much as R 200,000 or whichever the maximum allowed amount by specific lender.
Being blacklisted is not the end of your credit road for you. South Africa has a lot of registered credit providers that are willing to look at your case and help you apply for a loan (in the case of facilitators) or even loan you the funds themselves. Therefore you can go straight to a credit provider to apply for a loan and you will get your answer sometimes within minutes depending on the loan amount. The best thing to do in most cases for blacklisted individuals is to go see a credit facilitator. These are the people who apply on your behalf to credit providers and facilitate your application process to give you a better chance of being approved for a loan.
Let’s look at credit facilitators and how they help people who are blacklisted but need a loan.
A loan is often looked at case by case to see if you qualify. Credit facilitators that apply for a loan for you are experienced enough to know how to present your case to lenders and which documents and information is needed when presenting a loan application to registered credit providers. Information that you would normally have to have are your monthly expenses, monthly/fortnight salary, SA ID book and employment record.
Tip: make sure you are able to afford a loan by calculating your monthly expenses. You will most likely be approved if you can show that you can afford the loan. Do not cheat when calculating your expenses as credit providers can easily check what you are paying to other credit providers. Make sure you calculate all your expenses including your groceries and clothing accounts.
Tip: keep a record of how you are paying for the debts that you are currently blacklisted for. A track record of good financial management will look good for credit providers. No credit provider wants to get into trouble with the NCR for giving a loan to a person who is unable to pay their debts.
There are a lot of debt consolidation loans for South African citizens, the trick is getting an affordable consolidation loan that suits you as an individual. A warning that is always given to people who would like to consolidate their debt is that they should realize that they are actually taking out another loan, which means their debt has not magically disappeared but rather that it is now a lot more manageable.
This is because consolidating a loan means you are taking a loan so as to pay off your existing loans that have a higher interest rate and you are putting your debt into one manageable loan that has a lower interest rate and, because it is mostly over a long period, a longer period to pay your debts off.
And which consolidation loans are available in South Africa?
They are the secured loans, where you have to have collateral like a house (and depending on who you talk to you can put in your pension, etc., and other sure finances as collateral). Credit providers who give these loans are mostly the big financial institutions like Absa, FNB and Standard Bank. To read more on how this is done follow this link.
The next is an unsecured loan, where you do not have collateral like your own home or secured finances. This, and you will find this out when you visit credit providers, is the most risky for lenders. Follow this link to find out more about it.
At the end of the day you do not need to despair about finding loans available to consolidate your debt tailored especially for you.
To apply please Click Here.
Getting a loan whilst you are in creditor’s bad books will tax you with your finance and time. Running from pillar to post looking for the best rates, let alone a lender who will lend you money, when you are blacklisted is a task. With a quick search on the internet I think you will find that you can find a lender who will give you a loan with your bad credit rating.
Get a loan with bad credit by meeting these requirements and you will be on your way to secure a loan with most lenders:
- Be a South African with a valid ID
- Your three latest payslips
- Make sure your salary was deposited in the same bank account for the previous three months
- Check your affordability by making sure your monthly expenses will fit in with the amount you will likely pay.
If you are under administration or in any kind of debt restructuring program you cannot apply for most loans.
I was always against this as when you default on the payments you may lose the car and not be able to get your car again. READ THE TERMS AND CONDITIONS, WELL!!!! This is how you can get a car when you have bad credit or are blacklisted: You “rent” the car.
Basically the supplier avoids giving you a loan but actually “rents” out the car to you. At the end of this “rental” period, where you may also be subject to a balloon payment, you are then able to get the car in your name. Look at it as a rent-to-own as well. Take this only when you are desperate to have a car.
Here are some of the things you will need to get improve your chances of being approved:
- A minimum refundable deposit of R 10 000.00 or R 15 000.00 or applicable category deposit, or a trade-in vehicle to the same value as the cash category deposit
- Valid Drivers License
- Valid ID
- Last 3 months pay slips
- Last 3 months bank statements
- Proof of residence – Water and lights, bank statements or lease agreement
- No criminal record and no previous unresolved issues with Blacklisted Car Finance
Speak to a few service providers and try to get the best terms such as no balloon payments, higher payment amounts, shorter rental period and try to take a smaller car… You do not need a BMW as these cars will generally be more expensive than a humble Corsa Lite.
Apply for an unsecured debt consolidation loan and brace yourself for higher interest rates. What is the difference between this type and other loans used for debt consolidation? This is an unsecured loan, which means that you as the borrower would not place any collateral with the lender. Would you later to default with the lender they would claim from your claimed assets.
This sort of loan attracts higher interest rates because this is a greater risk for lenders. This is because an unsecured loan means you as a borrower are not fronting any collateral for the loan, which naturally makes you an even higher liability, and attracts an even higher interest loan than had you taken a secured loan.
Now, if you are blacklisted and don’t have collateral like a property, this might be the perfect loan for you to take up. Of course you will have to check the pros and cons of taking such a high interest loan over a long period to clear your debts. The higher the loan amount the longer you will have to pay the loan back.
You will need the usual documentation such as South African I.D., 3 months pay slip and bank statements.
To increase your chances, most credit providers are more likely to loan you if are not under debt review, earn a monthly or fortnight wage, not be a commission earner, have a bank account that your salary is deposited into, prove your money expenses so as to show affordability.
Unsecured debt consolidation loan for blacklisted people is a solution for most people, but not everyone.
To apply please go to our loan consolidation page.
You can clear your debt and avoid being blacklisted by getting a debt consolidation loan from home loan providers. A debt consolidation loan is an extra loan that you take out on your home so as to pay off extra debt and avoid getting a bad credit record. This is possible because your home grows in value every year and by re-financing you are able to release some of that value and get a loan on it. You are now able to get that loan to pay off your other long term debts.
The loan that you get should be used for long term or high interest debt as this will better serve you in clearing debts and avoiding a bad credit record.
SA Home Loans hopes you will do what they term “a switch” in order for you to have access to their debt consolidation loan. They have a rather solid track record as a lender home loan provider and claim over 100 000 clients. They give solid advice and ask their clients to consider how they will be spending the cash they get from doing a debt consolidation with SA Home Loans.
Contact SA Home Loans and ask for them to switch your home loan in order to get a home loan with them and get access to debt consolidation.
You can contact them 0860 2 4 6 8 10 and ask to switch your home loan to them. The interest rates will be discussed and calculated in their entirety so be sure to weigh their rates, it is worth it.
Switching is not as expensive as you might think and a competitive solution from SA Home Loans might save you from getting a bad credit record.
Short term loans are hard to come by if you have bad credit or are blacklisted. Many financial institutions will most likely turn you down if they find that you have bad credit, or they will charge you an exorbitant interest rate for the short term loan.
Try and minimize your chance of being rejected by making sure that none of these apply to you:
- You must not be self-employed as this shows that you are getting an irregular amount of money per month and may struggle with paying the lender back.
- You must not be under administration or under debt review. This is self explanatory as if you are still under debt then you may get into more debt through loans.
- You may not currently be under sequestration or in the process of being liquidated.
If you are permanently employed, receive your salary into a bank account (monthly or fort-nightly), have been employed for more than three months (this is lender dependent) and are a South African citizen, then your application will be considered with major credit providers.