Debt consolidation loans create one payment by converting all your smaller debt into one loan transaction.
You will repay only one installment per month and all your creditors, credit cards, overdraft, store cards and personal loans will be cleared.
Your credit score and record could possibly be improved by clearing all smaller debt that may have been left unpaid.
By using your home as collateral for this type of loan your will easily be able to apply for such a loan. You would need to be able to proof monthly income of R 10,000 or more from the household.
The credit provider will assist you to settle all creditors as listed above.
In the case where you have been blacklisted this need to be removed from ITC. Ask that the credit provider to confirm this to you in writing.
You might find that the interest rate of the loans are bit more than the avarage of a normal bank loan, but will be less expensive than your small debt that you currently may have.
After your application has been approved do not apply for further credit. The whole purpose of the consolidation is that you do not struggle with all the small creditors anymore. After more or less 12 months try to apply at one of the main banks of South Africa for a better interest rate.
Try your best to repay this loan as soon as possible by do additional capital payments into the loan account.