Debt Consolidation

Combine multiple debts into one manageable payment with potentially lower interest rates and clear timeline to become debt-free.

What is Debt Consolidation?

Debt consolidation combines multiple debts into a single loan, potentially reducing your interest rates and simplifying your repayments.

Before Consolidation

Credit Card 1
$8,000
19.99% p.a.
Credit Card 2
$5,500
24.99% p.a.
Personal Loan
$12,000
15.99% p.a.
Total Monthly Payment:$865

After Consolidation

Consolidation Loan
One simple payment
$25,500
12.99% p.a.
New Monthly Payment:$590
Monthly Savings:$275

Calculate Your Potential Savings

See how much you could save by consolidating your debts into one loan with a lower interest rate.

Loan Calculator

$50,000
18% p.a.
12% p.a.
5 years

Your Potential Savings

Current Monthly Payment$1270
New Monthly Payment$1112
Monthly Savings$157
Annual Savings
$1889
Based on your inputs above

How Debt Consolidation Works

A simple 4-step process to simplify your finances and potentially save money.

1

List Your Debts

Gather all your credit cards, personal loans, and other debts with their balances and interest rates.

2

Apply for Loan

Apply for a debt consolidation loan that covers the total amount of your existing debts.

3

Pay Off Debts

Use the consolidation loan funds to pay off all your existing credit cards and loans.

4

Make One Payment

Focus on just one monthly payment at a potentially lower interest rate.

Benefits of Debt Consolidation

Discover how consolidating your debts can improve your financial situation and reduce stress.

Lower Interest Rates

Potentially reduce your interest rates from high credit card rates (18-25%) to lower personal loan rates (6-15%).

  • Save hundreds monthly
  • Reduce total interest paid

Simplified Payments

Replace multiple payment dates, amounts, and creditors with just one simple monthly payment.

  • One payment date
  • Easier budgeting

Clear End Date

Unlike credit cards with minimum payments, personal loans have a fixed term so you know exactly when you'll be debt-free.

  • 1-7 year terms
  • Guaranteed payoff date

Reduced Stress

Stop juggling multiple bills and creditors. Focus on one payment and regain control of your finances.

  • Less mental load
  • Better sleep

Improve Credit Score

Pay off credit cards and maintain on-time payments to potentially improve your credit rating over time.

  • Lower credit utilization
  • Better payment history

Fixed Payments

Know exactly what you'll pay each month - no surprises from variable credit card payments or rate increases.

  • Predictable budgeting
  • No payment surprises

Current Rates & Terms

Competitive interest rates and flexible terms to suit your financial situation.

Interest Rates

Excellent Credit
5.67% - 9.99% p.a.
Good Credit
9.99% - 15.99% p.a.
Fair Credit
15.99% - 24.99% p.a.

Comparison Rate: Rates shown include our assessment of fees and charges. Actual rates depend on your credit score and financial circumstances.

Loan Features

Loan Amount$5,000 - $100,000
Loan Term1 - 7 years
Repayment FrequencyWeekly, Fortnightly, Monthly
Early RepaymentNo penalties
Application Fee$0 - $395
Monthly Fee$0 - $15

Available Features:

Fixed rates
Variable rates
Redraw facility
Online management

What Debts Can You Consolidate?

Most types of unsecured debts can be consolidated into one manageable loan.

Credit Cards

High-interest credit card balances from multiple cards

Typical Rate: 18-25% p.a.

Personal Loans

Existing personal loans from banks or other lenders

Typical Rate: 8-20% p.a.

Store Cards

Retail store cards and buy-now-pay-later services

Typical Rate: 15-28% p.a.

Other Debts

Payday loans, overdrafts, and other unsecured debts

Typical Rate: Varies

Debts You Cannot Consolidate

Some debts cannot be consolidated including: secured loans (home loans, car loans), tax debts, court fines, child support, and student loans (HELP/HECS).

Important Considerations

Debt consolidation isn't right for everyone. Consider these factors before applying.

Potential Risks

Higher Total Cost

Longer loan terms may mean lower monthly payments but higher total interest over time.

Secured vs Unsecured

Avoid turning unsecured debt into secured debt (using your home as security) as this puts your home at risk.

Temptation to Spend

After paying off credit cards, avoid the temptation to rack up new debt on the cleared cards.

When It Makes Sense

Lower Interest Rate

The consolidation loan has a significantly lower interest rate than your current debts.

Stable Income

You have a stable income and can comfortably afford the new monthly payment.

Commitment to Change

You're committed to changing spending habits and not accumulating new debt.

Eligibility Requirements

Check if you meet the basic requirements for a debt consolidation loan.

Age & Residency

  • At least 18 years old
  • Australian citizen or permanent resident
  • Valid visa holders may also qualify

Income Requirements

  • Minimum $25,000 annual income
  • Stable employment history
  • Ability to service loan repayments

Credit History

  • Acceptable credit score
  • No recent bankruptcies
  • Manageable existing debt levels

Documents You'll Need

Identity & Address

  • Driver's license or passport
  • Recent utility bills
  • Medicare card

Income & Expenses

  • Recent payslips (2-3 months)
  • Bank statements (3 months)
  • Details of existing debts

Alternatives to Consider

Debt consolidation isn't the only option. Consider these alternatives before making a decision.

Balance Transfer

Transfer high-interest credit card balances to a new card with a 0% promotional rate.

0% interest periods available
Rate reverts after promotional period

Home Equity Loan

Use your home's equity to secure a loan with lower interest rates.

Lower interest rates
Your home is at risk

Debt Agreement

Formal arrangement to pay creditors less than you owe over time.

Reduced debt amounts
Affects credit rating

Negotiate with Creditors

Contact your creditors directly to negotiate lower payments or hardship arrangements.

Free to attempt
May temporarily reduce payments

Financial Counselling

Free professional advice to help you manage debt and create a budget.

Free and confidential
Professional guidance

Budgeting & Planning

Create a strict budget and debt repayment plan to tackle debts systematically.

No additional borrowing
Requires discipline & time

Avoid Debt Consolidation Scams

Protect yourself from fraudulent companies and misleading debt consolidation offers.

Warning Signs to Avoid

Upfront Fees

Legitimate lenders don't charge upfront fees before providing a loan.

Unrealistic Promises

Claims like "eliminate all debt" or "guaranteed approval regardless of credit" are red flags.

Pressure Tactics

High-pressure sales tactics or demands to "sign today" are warning signs.

No Credit Checks

Legitimate lenders always conduct credit checks as part of responsible lending.

How to Protect Yourself

Check ASIC Register

Verify the lender holds an Australian Credit License by checking ASIC's website.

Read All Documents

Carefully read the loan agreement, terms and conditions, and all fee schedules.

Compare Multiple Offers

Shop around and compare offers from multiple reputable lenders.

Get Professional Advice

Consider speaking with a financial counsellor before making major debt decisions.

Get Help & Report Scams

National Debt Helpline

1800 007 007

Free financial counselling

Report Scams

Scamwatch.gov.au

ACCC scam reporting

ASIC

1300 300 630

Licensing & complaints

Debt Consolidation FAQs

Common questions and answers about debt consolidation

Debt consolidation combines multiple debts (credit cards, personal loans, store cards) into one new loan with a single monthly payment. This simplifies your finances, potentially reduces your overall interest rate, and can lower your monthly payments by extending the term. By replacing multiple high-interest debts with one lower-rate loan, you may save thousands in interest while paying off debt faster.

Still have questions?

Our team is here to help you find the right debt consolidation solution

Ready to Simplify Your Finances?

Get the debt consolidation loan you need to simplify your payments and save money. Apply today and get approved within 24 hours.