Debt Consolidation Calculator

How This Calculator Works

This debt consolidation calculator takes your existing debts, such as personal loans, credit cards, store accounts and overdrafts, and combines them into a single hypothetical loan. You input each debt's outstanding balance, current interest rate and remaining term, and the calculator totals your current combined monthly repayments alongside the total interest you will pay across all debts. You then enter a proposed consolidation loan amount, a new interest rate and a new repayment term. The calculator applies a standard amortisation formula to produce your new single monthly instalment and the total interest cost over the consolidation loan's life. The difference between the two totals shows your potential monthly saving and your overall interest saving or additional cost. In South African terms, all figures are shown in ZAR and the calculator helps you see whether consolidating through a registered credit provider under the National Credit Act will genuinely reduce your financial burden or simply extend it at a hidden long-term cost.

What Affects Your Repayment

• The interest rate on your consolidation loan has the greatest single impact on your result. A rate even a few percentage points lower than your current blended average can produce significant monthly and total savings.
• The repayment term you choose directly affects your monthly instalment. A longer term reduces the monthly payment but increases the total interest paid over the life of the loan, sometimes wiping out any apparent saving.
• Your credit score, as assessed by South African credit bureaus such as TransUnion or Experian, determines the rate a lender offers you. A poor credit profile may mean the consolidation rate is not actually lower than your existing rates.
• The types of debt being consolidated matter because secured debts and unsecured debts carry different rates. Consolidating low-rate secured debt into a higher-rate personal loan can increase your total cost even if the monthly payment drops.
• Initiation fees and monthly service fees charged by the credit provider under the NCA fee caps are included in the true cost of your loan. These fees increase the effective cost and should always be factored into your comparison.
• The outstanding balances you enter must be accurate and up to date. Including settlement amounts rather than statement balances ensures the calculator reflects the actual amount you need to borrow.
• Early settlement penalties on your existing debts, where applicable under NCA provisions, can add to the real cost of consolidation and should be investigated before you proceed.

Tips to Lower Your Repayment

• ✓Always compare the total interest payable across all current debts against the total interest on the proposed consolidation loan, not just the monthly payment, because a lower instalment over a much longer term often costs more overall.
• ✓Request a settlement quote from each existing lender before applying, as settlement amounts under the NCA can differ from your current statement balance and affect how much you actually need to borrow.
• ✓Only use a registered credit provider that is listed on the NCR register. Using an unregistered lender removes your consumer protections under the National Credit Act and exposes you to illegal fee structures.
• ✓Check whether your new consolidation loan will use a DebiCheck debit order for repayment. DebiCheck mandates require your prior authentication, which gives you an added layer of protection against unauthorised collections.
• ✓Avoid consolidating and then continuing to use the credit cards or store accounts you have just paid off. Running those balances back up alongside a new consolidation loan worsens your debt position significantly.
• ✓If your consolidation loan is declined or offered at an unfavourable rate, consider consulting a registered debt counsellor under the NCA's debt review process, which may offer a more structured and legally protected repayment plan.
• ✓Be aware that lenders must share your credit data under POPIA consent provisions. Check that any application form clearly discloses how your personal and financial information will be used before you sign.

Frequently Asked Questions