Debt Consolidation Calculator
Calculate whether consolidating your debts saves money. Compare your current total interest and monthly payments against a single consolidation loan.
Quick Calculator Get a fast estimate
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The interest rate offered on your consolidation loan.
Consolidation Monthly Payment
R 1 611
Current Total Monthly Payments
R 2 000
Monthly Savings / Extra Cost
Save R 389
Current Total Interest (all debts)
R 28 567
Consolidation Total Interest
R 26 641
Total Interest Saved / Extra
Save R 1 925
Weighted Average Current Rate
17.50%
Consolidation Rate
13.50%
Total Debt
R 70 000
Verdict
Consolidation is likely beneficial
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SA Consolidation Loan Options
| Option | Typical Rate | Pros | Cons |
|---|---|---|---|
| Personal loan | 13-24% | No security needed, fixed term | Rates can be high for bad credit |
| Access bond (home equity) | ~11.75% | Low rate, flexible | Home at risk, long repayment period |
| Debt review | ~9-15% | Negotiated rates, protection | Credit flag, fees, long process |
| Balance transfer | 0-16% | Temp low rate on credit cards | Transfer fees, limited availability |
The Extended Calculator compares your current debt stack against a consolidation loan. The Professional Calculator adds full multi-debt entry with NCR/NCA compliance notes.
Need more detail?
Extended Calculator More options, charts, and scenario comparison
Your Debts
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Current Debt Summary
R 127 000
Total monthly payments
R 5 800
Weighted average rate
20.0%
Total interest (current path)
R 33 473
When Does Debt Consolidation Make Sense?
Consolidation is beneficial when:
- The consolidation rate is lower than your weighted average current rate
- The term is not significantly extended (avoid 60-month consolidation of debt you could pay in 24 months)
- You can close existing accounts to prevent re-accumulating debt
- The monthly payment reduction genuinely frees up cash for other financial goals
NCR contact: If you are struggling with over-indebtedness, contact the National Credit Regulator at 0860 627 627 or visit ncr.org.za for a list of registered debt counsellors.
Need full precision?
Professional Calculator Complete parameters, sensitivity analysis, and detailed breakdown
Debt Portfolio
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Consolidation Loan
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SA personal loan: 12-24%
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NCA max R1,000+10% of excess over R1,000
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NCA max R69/month
Consolidation Impact
Save R 3 160/month
Total debt
R 132 000
Weighted avg rate
20.2%
Current monthly total
R 6 300
New monthly (incl fees)
R 3 140
Interest saving
R 22 316
Cash Flow Improvement Timeline
| Year | Current Outflow/yr | Consolidated/yr | Annual Saving |
|---|---|---|---|
| Year 1 | R 75 600 | R 37 685 | R 37 915 |
| Year 2 | R 75 600 | R 37 685 | R 37 915 |
| Year 3 | R 75 600 | R 37 685 | R 37 915 |
| Year 4 | R 75 600 | R 37 685 | R 37 915 |
| Year 5 | R 75 600 | R 37 685 | R 37 915 |
NCR & Debt Counselling Reference
Debt review (NCR): If you cannot afford your debts, NCR-registered debt counsellors can negotiate lower payments. This protects you from legal action while under debt review (SA Debt Counselling Act).
NCA rate caps: Personal loans capped at Repo + 21%. Credit cards capped at Repo + 14%. Store accounts capped at Repo + 14%.
Free service: Contact the National Credit Regulator (0860 627 627) or the National Debt Counselling Association (NDCA) for free assistance.
Frequently Asked Questions
Debt consolidation means combining multiple debts into a single loan, ideally at a lower interest rate or more manageable monthly payment. Common in South Africa through personal loans, home equity loans (second bonds), or debt review programs.
Consolidation can work if: the new rate is lower than your weighted average current rate, you can afford the new payment, and you close the old accounts (to avoid re-accumulating debt). It is not a solution if the underlying spending behaviour doesn't change. Extending the term can reduce monthly payments but increase total interest.
Debt review (debt counselling) is a formal process under the National Credit Act for over-indebted consumers. A registered debt counsellor negotiates with creditors for reduced interest rates and a restructured payment plan. Your accounts are flagged on credit bureaus while under review, but you are protected from legal action. Costs apply.
Consolidating unsecured debt (credit cards, personal loans) into your bond reduces rates but extends the repayment period to potentially 20 years. Short-term debt becomes long-term. A R30,000 credit card consolidated into a 20-year bond at 11.75% can actually cost more in total interest than paying it off aggressively at 22% over 3 years.