How to Pay Less Interest by Combining Your Loans with Nedbank?
For many South Africans juggling multiple credit cards, store accounts, and personal loans, high interest rates and scattered repayments can make debt feel impossible to manage. Nedbank’s debt consolidation loan offers a structured way to simplify your finances — and potentially reduce how much interest you pay overall.
But consolidation isn’t automatically a guarantee of savings. Understanding how it works, and how to use it strategically, is key to getting the best results.
How Nedbank Debt Consolidation Works
Debt consolidation involves taking out one new loan to settle several existing debts. The aim is straightforward:
➡️ Replace multiple high-interest accounts with one loan , ideally at a lower fixed interest rate and a single monthly service fee .
Here’s how the process typically unfolds with Nedbank:
1. Apply for a Consolidation Loan
You can apply:
Online
Through the Nedbank Money App
At a branch
Or by requesting a callback
During the application, you’ll list the accounts you want Nedbank to settle.
2. Undergo a Credit Assessment
Nedbank evaluates your:
Income and expenses
Financial stability
Credit score
Existing repayment obligations
This assessment helps Nedbank offer you a personalised interest rate and an appropriate repayment term.
3. Receive and Accept Your Offer
If the offer suits your financial goals, you accept it. Nedbank then:
✔️ Pays off the old debts directly
✔️ Closes those accounts (where applicable)
✔️ Leaves you with one consolidated loan to manage
4. Manage One Monthly Repayment
After consolidation, everything becomes simpler:
One lender
One payment date
One fixed interest rate
One service fee
This structure helps reduce missed payments and improves financial control.
How to Maximise Your Interest Savings with Nedbank
Consolidation alone doesn’t guarantee you’ll pay less interest — the savings depend on how you structure and manage the new loan. Here’s how to ensure you genuinely reduce your total cost of borrowing:
1. Secure a Lower Interest Rate
The new interest rate must be lower than the average rate of the debts you're consolidating.
Credit cards and store accounts, for example, often carry high interest rates, making them prime candidates for consolidation. Nedbank typically offers more competitive rates on personal loans, depending on your risk profile.
2. Maintain or Increase Your Total Monthly Repayment
If your new consolidated instalment is lower , you may feel short-term relief — but a longer repayment term often means you pay more interest overall.
To save the most:
Continue paying the same amount you were paying across all your debts before, or
Pay more whenever possible
This speeds up capital reduction and cuts down the total interest charged.
3. Choose the Right Loan Term
Your loan term directly affects how much interest you pay:
Shorter term = higher instalments, lower total interest
Longer term = lower instalments, higher total interest
Choose the shortest repayment period you can comfortably afford to maximise savings.
4. Avoid Taking On New Debt
Once Nedbank settles your old accounts, it’s essential to stay disciplined:
Don’t reopen store accounts
Avoid credit card offers
Stick to your repayment plan
Consolidation is only effective if you prevent new debt from building up again.
5. Use the Nedbank Debt Consolidation Calculator
Nedbank offers a tool that allows you to:
Compare different repayment terms
See estimated monthly instalments
Understand how much you could save in interest
Using this calculator helps you make an informed decision before accepting an offer.
Final Thoughts
Combining your loans with Nedbank can be a smart way to reduce interest costs and regain control over your finances — especially if you secure a lower interest rate and commit to disciplined repayments. Debt consolidation is most effective when paired with responsible financial habits and a clear long-term plan.