- Single, manageable monthly loan payment
- Saves on multiple fees, service charges and debit order charges on the various loans
- Monthly repayment will be lower on the consolidated loan
- Improve cash flow
Debt consolidation in easy terms is the access of additional funds through a Further Loan / Further Advance (Low interest rate loan – min R100 000* only Absa & STD Bank) and using these funds to repay your clients high interest rate debt. Home loans normally have a much lower interest rate than credit cards, car leases, furniture HP loans etc. It is also advised that your clients purchase new items like boats, cars, student loans etc. with money acquired from a further loan or an access bond rather than take a lease on these items.
One should not pay short term expenses with long term finance (debt). However, this may be one of the only immediate options open to you. If you are currently in danger of defaulting on your loan repayments, you will need the breathing space from this cash flow improvement to stave off any defaults.
Certainly debt consolidation can be a lifeline and is preferable to a judgement or a repossession of your house or car. However, we do recommend that the short-term debt should be repaid as soon as your circumstances permit.
This is just one of the many products available to all Ubuntu Connect Business Partners.
The calculator below indicates the potential profitability of this product. Simply enter the amount you can market to your clients each month and the calculator will indicate your potential profits.
Minimum loan amount of R100 000 only with Absa and Standard Bank
For more information on our Business Partner Program click here.
- I understand that Ubuntu Connect is not a financial services provider and that all the content provided on this site is for informational purposes only, to facilitate the application process and in no way constitutes legal or financial advice.
- Your application for a loan remains subject to approval in-terms of our Credit Providers qualifying criteria and the provisions contained in the National Credit ACT, 34 of 2005. Our Credit Providers are an Authorised Financial Service Provider and have always promoted responsible lending whilst always being compliant with the National Credit Act.