Debt Consolidation Loans
Too many debts? Compare debt consolidation loan quotes and secure a better interest rate with Hippo.
Debt Consolidation Loans
Debt Consolidation Loans: What Are They?
Many South Africans are drowning in debt. According to the Reserve Bank, South African consumers are around R1.7 trillion in debt. A study by the World Bank revealed that over 25 million South Africans are in debt to lenders and financial institutions.
1Life Insurance conducted a survey to understand the debt issue. They asked participants if they are in debt and if so, how much it costs them each month. The results showed, on average, 72% of people’s income was spent on repaying debt. So, if someone earned R10,000 per month, R7,200 of that was going straight towards paying off debts.
With fluctuating interest rates and an uncertain economic environment affecting the country, as stated by Matthew Le Cordeur in fin24, debt is becoming a bigger and bigger problem, but Hippo.co.za is here to tell you it’s not all doom and gloom. Financial assistance is available to over-indebted consumers in the form of debt consolidation loans.
Debt Consolidation Loans Explained
Debt consolidation can help combine multiple debts into one repayment, making it easier to manage monthly commitments.
1
What is a debt consolidation loan?
A debt consolidation loan is taken out to pay off several smaller loans. The main benefit is that you owe only one creditor, the financial institution that gave you the debt consolidation loan.
Repayments are often at a lower interest rate over a manageable period of time.
2
What debt can be consolidated?
Debt consolidation is a method of refinancing for those dealing with overwhelming debt. It allows them to combine short-term debts such as store accounts, personal loans, and credit card debt.
3
How debt consolidation works
You can consolidate your debt in one of two ways. As with any regular loan, you must first meet certain eligibility requirements so the lending institution can ensure you can afford to repay the debt consolidation loan.
Once the loan is approved, your bank account may be credited with the agreed-upon amount and you settle the debts yourself. Some institutions take a different approach, where you provide settlement letters and they settle your debts directly with creditors.
4
Benefits of debt consolidation
While debt consolidation loans don’t immediately rid you of your debt, they might make it easier to manage repayments.
The amount you end up paying over the long term is often lower, as you’re paying off interest on one loan, not several.
5
How to apply
Debt consolidation services are offered by accredited institutions such as banks and financial service providers.
Loans are regulated by the South African National Credit Regulator (NCR) under the National Credit Act (NCA) of 2005, so make sure you use a reputable debt consolidation company that abides by the standards set out by the NCR.
6
What is the National Credit Regulator?
The NCR operates under the national Department of Trade and Industry and promotes fair and non-discriminatory lending practices.
It has access to consumer credit records and ensures financial institutions act in the interests of consumers, for example, by lending money only to people who can afford to repay a loan.
Debt Counselling and Consolidation
Need Help Managing Multiple Debts?
If you’re struggling with multiple debts and are looking for a way to better manage them, the answer may just be debt counselling. This will help to develop an affordable repayment plan, which might include a debt consolidation loan.
Sources: DispatchLive, BusinessTech, Wikipedia, NCR, IOL (1Life), fin24.
Prices quoted are correct at the time of publishing this article. The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.
Compare debt consolidation options
SA’s Leading Comparison Site
Once you go Hippo, you don’t go back. Just ask these customers:
I was looking for insurance quotes andhippo managed to show me the most affordable options available for me. It really helped me to make an informed decision about my car insurance.
Anonymous
Service provided is useful. Getting multiple quotes quickly and easily in one place is very convenient. When capturing my age I had to scroll for longer than needed to get all the way back to 1978. Consider changing this to an input field where you can just type in the date.
Anonymous
Used twice over the last week to get quotes for different scenarios. Both times the quotes loaded quickly, there was multiple options and as I had to leave the website, I got a WhatsApp after as well on which I could click the desired option which was nice
Penelope
Independent Service Rating based on 20 704 service ratings.
Compare more than just Personal Loans
With Hippo we make it easy to find great deals across multiple products.
Debt Consolidation
A Debt Consolidation loan merges multiple debts into a single Personal Loan with one monthly repayment, one credit provider and ideally a lower interest rate.
Debt Counselling
Debt Counselling helps over-indebted consumers restructure what they owe into an affordable repayment plan and negotiating with creditors on your behalf.
Funeral Cover
Covers the immediate costs associated with a funeral. Premiums are influenced by your age, number of policy members and amount of cover.
Personal Loans
Compare rates across multiple lenders to find a fair deal. Rates vary based on your credit profile and chosen loan term, so comparison matters.
Medical Aid
Gives you access to private healthcare. Compare plans, benefits and costs to find the right fit without paying for cover you don't need.
Car Insurance
Covers your vehicle against damage, theft and third-party claims. Premiums vary by driving history, usage, vehicle model and where you park overnight.
Medical Gap Cover
Covers the difference (shortfall) between what your Medical Aid pays and what a specialist charges. Gap Cover is not a substitute for Medical Aid.
Medical Insurance
More flexible and affordable than Medical Aid, Medical Insurance covers day-to-day health needs or specific procedures. This product is not a substitute for Medical Aid.
Business Insurance
Protects your business’ property, assets and third-party liability. The right cover depends on the nature, size and risk profile of your operations.
Life Insurance
Provides financial security for your dependants. Ensure your home loan, rental costs, debt and children’s tuition are taken care of when you pass.
Home Contents Insurance
Covers your home's contents against damage, theft and loss. Compare quotes to find the most competitive rate.
Building Insurance
Covers the physical structure of your property against damage. Compare quotes to make sure you're not overpaying.
Motorbike Insurance
Covers your motorcycle against damage, theft and third-party claims. Premiums vary based on your personal profile.
Pet Insurance
Vet bills can add up quickly, especially when unexpected. Compare quotes to find a policy that fits your fur baby’s needs (and your monthly budget).
Travel Insurance
Protects you against unexpected medical and/or flight-related costs when travelling locally or abroad. Premiums vary based on the type of cover you opt for.
Home Fibre
Fibre prices and speeds vary significantly by area and provider. Find the fastest, most affordable package without contacting each provider separately.
Scratch and dent cover
Covers minor cosmetic damage to your vehicle without affecting your Car Insurance claims record. Compare plans to keep your car looking good without paying out of pocket.
Tyre and Rim cover
Covers the cost of repairing or replacing damaged tyres and rims. Compare plans to find affordable cover that protects you against one of South African motoring's most common expenses.
Motor Warranty
Protects you against unexpected mechanical and electrical repair costs after your manufacturer warranty expires. Compare plans to find the right level of cover for your vehicle.
Service Plans
Covers the cost of scheduled vehicle maintenance, including parts and labour. Compare service plans alongside your Car Insurance for a complete picture of your motoring costs.
Vehicle Tracking
Helps protect your vehicles by assisting with recovery in the event of theft. Many providers also use Vehicle Tracking to flag when your vehicle is in an unfamiliar area.
Hippo Comparative Services (Pty) Ltd is an authorised financial service provider.
FSP number: 16357. Block A, Steyn City Capital Park, Erling Road, Riverglen, Dainfern, 2191
*Based on independent research by Kaufman Levin & Associates 2025.
© Copyright 2026 Hippo Comparative Services (Pty) Ltd. All Rights Reserved.