Old Mutual debt consolidation review

Debt consolidation means taking one new loan to pay off your existing debts. You are left with a single loan and a single repayment. That is the NCR's description, and it is why consolidation is different from debt counselling.

Consolidation does not reduce what you owe. It moves several debts into one. Before you sign, ask the lender in writing for the total you will repay over the whole loan, not only the monthly instalment, and for every fee.

We do not state Old Mutual's rate, fees, loan size or term. We could not confirm them, and these figures change.

Checked on 30 September 2026 against Old Mutual Finance's official website. Before you sign anything with a debt help firm, confirm the debt counsellor's registration with the National Credit Regulator, and never pay a "removal" or "clearance" fee to someone who contacts you out of the blue.

Debt review offers legal protection while you keep paying as agreed. The NCR also says repayment may take longer. You cannot withdraw once you have applied. More in debt review vs debt consolidation.

Section 88(1) of the National Credit Act says that once you have applied for debt review you must not enter into further credit agreements, other than a consolidation agreement. Form 16 carries the same declaration. That wording is narrow, and whether a lender will grant a loan to someone under review is the lender's decision. We have not verified how Old Mutual Finance treats applicants under debt review.

Standard Bank says that once you are in debt review you cannot access or apply for new credit. The NCR says you are only eligible for new credit once a counsellor has issued a clearance certificate. Speak to your counsellor before you sign any new loan.

Be careful with phone calls about consolidation. The NCR has warned that some counsellors placed consumers under debt review without their knowledge or consent after phone calls about consolidation or reduced interest, using e-signature links. That is prohibited conduct. You must be the one who approaches a counsellor.

A consolidation loan can suit someone who is not over-indebted, who can be approved and who wants one payment instead of several. The NCR defines over-indebted as income that is not enough to cover all living expenses and debt repayments. Only over-indebted consumers qualify for debt review.

The risks are real:

• You may not be approved, and then this route is closed.
• A new loan is still a debt. If you keep using the accounts it paid off, you can end up owing more than before.
• If you are already missing payments, a new loan may not solve the problem. A registered counsellor can tell you whether you qualify for debt review.

Ask a counsellor for an assessment if you are unsure. See NCR registered debt counsellors and check the registration number first.

A consolidation loan is a credit agreement. The National Credit Act applies to credit agreements between parties dealing at arm's length. Ask for a clear breakdown of the interest rate, fees and total cost before you sign.

For a dispute with a bank or a participating credit provider, the National Financial Ombud is free, on 0860 800 900, once you have complained to the lender first. It took over the Credit Ombud on 1 March 2024. Check whether your lender takes part in the scheme.

The National Credit Regulator, on 0860 627 627 or [email protected], handles complaints from the public about credit providers, credit bureaus and debt counsellors.

You are entitled to one free credit report a year, and you can challenge anything inaccurate on it free of charge.