Question:
How can you consolidate the debt you owe to a number of companies into one account if you don't have a home loan; in other words, you can't put it into something like FNB's One Account because that is based on a home loan?

Answer:
The problem is that most banks rely on an underlying asset before they will offer you a consolidation.

Contrary to common belief, consolidation loans are for people with assets and healthy credit.

If you have a good relationship with your bank, you could approach them but if your finances are shaky they may say no. This is because they will not want to assume any more exposure for your debt.

The true benefit of a consolidation loan is that you can lower the average rate of interest that you pay by using the equity in your home to finance or settle more expensive debt.

If you are overextended, the best way to get out of the situation is to cut spending to the bone and to pay off as many debts as quickly as possible.