Absa offers new debt consolidation product
Absa has launched a new Gold facility option, designed to ease debt consolidation. It is a home loan and cheque account accessed by Absa internet banking, with a single management fee that covers everyday transactions.
Says Rodger Dunn, managing executive of the Absa group’s Retail Banking Services: “Increased property values mean that customers can save a substantial amount of interest, just by consolidating their debt into a flexible Absa home loan.
It’s financial harmony and, we certainly hope, music to many consumers’ ears.
“Such harmony occurs on two levels: cost-efficiency through the single fixed management fee and through the linking of all accounts into one facility allowing for more control and ease of financial management,” says Dunn.
The Gold single credit facility offers a competitive Absa home-loan rate, a single monthly banking fee with no limit on daily transactions, and points of control and assistance through Absa telephone or internet banking.
“Customers can also save on fee costs and pay only one fixed monthly management fee [R190] that includes internet, telephone banking and daily transactions. We don’t limit the number of qualifying transactions either, so customers can basically transact as much as they like for the fixed fee.”
The R190 management fee covers all daily transactions, such as debit orders, transfers, cash deposits and cash withdrawals, internet and telephone banking subscriptions, home-loan administration fees and electronic banking usage and information viewing.
Benefits also include an immediate interest-rate benefit when a client pays funds into a home loan, and, upon successful application, up to a 110% home loan that allows full use of the equity available in a secured asset.
Jaco Grobler, managing executive of Absa Group Home Loans, says: “The Gold facility has been designed with consumer interests and flexibility in mind. Many people are taking on extra credit at far more expensive rates than an Absa home-loan rate, without necessarily realising that they could use the capital available in their home loan.
“It therefore makes sense for Absa to take the lead in championing consumer interests relating to wholesome credit management. Consumers can now make even more use of their fully secured asset and utilise the equity available in their home loan. All round, it’s value-for-money, cost-effective credit management.”—I-Net Bridge