---
title: "Debt Consolidation, Debt administration & Debt mediation"
description: "### **Debt Consolidations** - **Debt consolidation means** taking out a new big **loan** to pay off a number of liabilities and consumer **debts**, generally unsecured ones. In effect, multiple **debts** are combined into a single, larger piece of **debt**, usually with a high-interest rate, with a period…"
url: "https://myezhub.co.za/knowledge/debt-consolidation-debt-administration-debt-mediation/"
updated: "2023-05-02"
category: Debt Review Training
---

# Debt Consolidation, Debt administration & Debt mediation

### **Debt Consolidations**

- **Debt consolidation means** taking out a new big **loan** to pay off a number of liabilities and consumer **debts**, generally unsecured ones. In effect, multiple **debts** are combined into a single, larger piece of **debt**, usually with a high-interest rate, with a period terms 3 -5 years.

### **Debt administration**

- **Debt Administration** is a process that is intended to help restructure the **debt**obligations of consumers who cannot pay their **debts**, have judgments or do not qualify for **Debt** Counseling. A repayment plan that is affordable to the consumer is developed and made an order of Court.

### **Debt mediations**

- **Debt mediation** is a process that is intended to help consumers who are experiencing a cash flow problem that might only last a few months. An alternative arrangement affordable to the consumer and acceptable to the creditor is made on the consumer's behalf.
- In case the client chooses one or more accounts to be negotiated or reduced.
- The client can still use their credit facility
- Clients can make new debts and are always in danger of becoming over-indebted