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Debt Consolidation Loans vs Debt Review: Which One is Better for You?

Have you come across the dilemma of terms like debt consolidation loans and debt review? If yes, then you have come to the right place, because here in this blog, we will be talking about the difference between the two to make things clear for you.

So, with no further delay, let’s get started on the same.

What is a Debt Consolidation Loan?

Debt consolidation as the name itself implies is the amalgamation of all your previous debts into one single loan for you. In case, you have multiple loans running on the head, then you can apply for debt consolidation loans online at a trusted platform like FocusCash and get those multiple loans into one single repayment service.

A consolidated loan helps you lower the total monthly repayments, all the hassles, and even the interest rate to an optimum extent. As a borrower, you find it convenient to only repay one loan instead of managing multiple ones.

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What is Debt Review / Debt Restructuring?

On the other hand, there is debt review or debt restructuring is a service offered by financial professionals. Basically, professionals will help you review all your debts and manage them on your behalf. They will help you talk to the lenders to lower the interest charges and monthly payments to keep you out of trouble.

Advantages and Disadvantages of Debt Consolidation Loans

Applying for debt consolidation loans in South Africa has its own set of advantages as well as cons that you must refer to before applying for the same.

Advantages of debt consolidation loans

  • Find it simple to repay all your debts fast and effectively.
  • Lower the interest rate on a loan and pay it swiftly.
  • Ensure a simplified financial position without facing more debt situations.
  • Find it simple to follow a fixed repayment schedule of combining all loans into one.
  • Enhance your credit ratings by repaying the loan on time.

Disadvantages of debt consolidation loans

  • It will take some time to settle all your pending debts.
  • You might have to pay the loan’s upfront cost.
  • Interest rates might be on the higher side.
  • Missing repayments will hit you hard with interest charges and late payment charges.

Advantages and Disadvantages of Debt Review / Debt Restructuring

Advantages of Debt Review

  • Stay out of monetary trouble with your loans managed by professionals.
  • Keep your assets safe with debt review service.
  • Facility to lower the interest charges and extend repayment term.
  • Consolidate all your payments into one single repayment.
  • Have more money available for meeting other expenditures.

Disadvantages of Debt Review

  • You may or may not qualify for debt review.
  • Sometimes you might have to face legal action.
  • You find it longer to repay all your debts.
  • You will face negative credit ratings in the profile.

Which One is Better for You?

Now, after comparing both the services called debt consolidation and debt review, it’s clear to say the fact that consolidating loans is a better financial solution. It is due to the fact that by applying for debt consolidation loans, you will be the one responsible for handling all your finances and keeping things in check without facing any hassle.


In conclusion, the dilemma between debt consolidation and debt review financial services is to make the right monetary decision. Refer to the information above and find the difference between the two services and ideally manage your debts.

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