Debt consolidation is an unsecured loan that enables customers to take out one loan to pay off many others like other personal loans, retail store balances, tertiary fees or other types of debt they may have.
Debt consolidation allows for internal and external exposures to be moved into a single exposure in order to improve customers monthly cash-flows.
Extra money paid into the loan reduces the interest charged on the account and reduces the remaining term. If the customer is in need of extra funds, a new application must be submitted. Additional payments made to the loan are not refunded since these amounts automatically reduce the outstanding balance on of the loan