Debt consolidation is combining multiple debts into a single personal loan to reduce monthly repayments to unlock cashflow.
As South Africa celebrates Women’s Month, honouring the strength and achievements of women across the country, we must remember that behind the stories of triumph are more sobering tales about financial strain and the heavy burden of debt many women carry alone.
Alpheus Legodi, product head at FNB Loans, says the pressure of debt on women can be relentless. “South African women are often the sole breadwinners, caregivers and financial decision-makers in their households. And they are increasingly turning to debt for survival.”
According to recent data from Statistics SA, women head 42.3% of households, while many are single parents, earning less than their male counterparts and carrying more unsecured debt. In fact, some reports show that most women in debt counselling are burdened by high-interest personal loans and credit cards, Legodi points out.
“These statistics reflect the lived experiences of millions of women who try to do everything right but still fall behind. This is not just a financial issue; it is a crisis. Women often have no choice but to take on debt to meet basic needs.”
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Emotional toll of over-indebtedness
The emotional toll of over-indebtedness can be immense, affecting your ability to plan, save and get ahead financially, he says.
“It can lead to you carrying an invisible weight, worrying about bounced debit orders, dodging calls from creditors, feeling exhausted by trying to stretch finances that continually fall short. For many women, it is a cycle that feels impossible to break.”
Legodi says debt consolidation can be a powerful tool for women who feel trapped by their debt. By combining multiple debts into a single personal loan, women can reduce their monthly repayments, simplify their finances and unlock cashflow.
“Take Mamosa, a 40-year-old from KwaZulu-Natal, for example. She was juggling five credit agreements, including two retail accounts, two loans and a balloon repayment agreement. She consolidated R185 000 of these agreements into one convenient product, reducing her monthly instalments by R1 306.
“She now has one repayment and one provider to engage with, while she is no longer paying interest on multiple agreements and unlocked R1 306 towards her monthly budget,” Legodi says.
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Debt consolidation not only about reducing payments
Ester Ochse, integrated advice product head at FNB, says debt consolidation is not just about reducing repayments. “It is about reducing anxiety. When women can manage their debt more effectively, they regain control over their finances and their future.
“By combining multiple debts into a single personal loan, you benefit from having one payment and one interest rate and potentially unlocking cashflow to cover essentials or start saving.”
Ochse says the South African reality is that a woman is the backbone of her community.
“She is the one who makes a plan, who goes without so her children do not have to. She carries the emotional and financial weight of an entire family. But she should not have to do it alone or in silence.
“While debt consolidation is not a miracle cure, it can be a lifeline, a way to plan again, hope again and breathe again. Let’s equip women with the tools they need to thrive. Let’s talk openly about debt, about financial stress and about the real solutions that exist. When women are financially free, everyone rises.”
