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Customers consolidating retail accounts, medical bills, personal loans, and credit cards as monthly budgets come under pressure
With many South Africans looking for practical ways to better manage their monthly expenses and reduce financial pressure, FNB has announced the removal of initiation fees on its qualifying debt consolidation service, making it more affordable for customers to combine, simplify and manage their credit commitments.
“Customers want to feel more in control of their credit, but the cost of switching providers and consolidating debt can sometimes create hesitation,” says FNB Retail Loans CEO MJ Davis. “By permanently removing an upfront cost barrier like the initiation fee, we are making it easier for qualifying customers to consider consolidation as a practical way to simplify their repayments and potentially improve their monthly cash flow.”
Davis says customers are increasingly using debt consolidation to manage a wide range of financial commitments. As living costs continue to place pressure on household budgets, customers are consolidating obligations such as retail accounts, personal loans, instalment accounts, medical bills, external revolving facilities and credit cards. These are often held across different providers, with different repayment dates, interest rates and fees, making monthly budgeting more difficult for households already navigating higher living costs.
“Debt pressure doesn’t always come from one large loan,” says Davis. “For many customers, it’s the combined effect of several smaller commitments that gradually place strain on their monthly budget. Consolidation can help bring those repayments into one place, making it easier to track, manage and plan around.”
According to Ester Ochse, Product Head at FNB Integrated Advice, the household benefit of simplifying debt is not only about reducing the number of repayments one has, it also plays a critical role in helping households regain control of their financial lives.
“When customers carry multiple credit commitments across different providers, it can often become difficult for them to fully grasp how much is going out each month and where the pressure points lie. By consolidating and structuring their debt more clearly, we help households build a more accurate view of their obligations, which is a critical first step in managing debt responsibly. This is also where tools such as My Advisor can help customers understand their broader financial position and consider the steps available to them based on their circumstances.”
She adds that this kind of visibility empowers customers to budget with greater confidence, and to better align their spending with their income, to make more informed, intentional financial decisions. “Ultimately, it’s about easing financial pressure, improving resilience, and helping households navigate their debt in a way that supports longer-term financial stability.”
That simplification is already translating into measurable relief for customers. Between July 2025 and April 2026, the bank helped customers unlock R60 million in monthly cash-flow benefits through debt consolidation, reflecting the role that simplified credit management can play in easing financial pressure.
“The removal of initiation fees is intended to give customers more breathing room at the point where they decide to take control of multiple credit commitments. Depending on a customer’s individual credit profile, affordability and loan terms, consolidation may help free up to R1 000 in monthly cash flow,” Davis adds.
For customers managing several repayments across different providers, the solution brings those commitments into one repayment, with one interest rate and a clearer structure, supported through the FNB Banking App or assisted channels.
However, Ochse says simplifying the structure of debt is only part of the challenge. “Many customers also need to feel ready to act, particularly when they are reassessing affordability and trying to understand which repayments are placing the most pressure on their monthly budget.”
The bank’s insights also suggest that many customers first reassess their financial position early in the year, particularly in January and February, before acting from March onwards once they have a clearer view of their affordability and options.
“Credit management should feel simpler, not more complicated. Our intent and commitment are to make that decision easier whenever customers are ready to act and take control of their credit over the long term,” concludes Davis.
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