Turn several debts into one simpler repayment
Credit cards, personal loans, buy now pay later: combining them can mean one due date, one rate and a clear finish.
- Free to compare
- A specialist partner broker, start to finish
- No credit score impact
Typical ranges only. Actual limits depend on the lender and your circumstances.
Example rate only: not a comparison rate, quote or offer of credit. Your rate depends on your credit profile, the lender and the asset. Excludes fees and charges.
If you’re in financial difficulty, talk to your lender about hardship options, or call the free National Debt Helpline on 1800 007 007. Moneysmart (moneysmart.gov.au) also has free guides.
How debt consolidation works with us
Juggling debts with different rates and due dates is stressful and expensive. A consolidation loan replaces them with one fixed repayment, often at a lower rate than cards.
Read more
Your broker will be honest about whether consolidating actually saves you money after fees and term. If not, they'll tell you.
- Credit cards
- Store cards
- Personal loans
- Buy now pay later
- Car loans
- Tax debts (with some lenders)
One repayment
Replace multiple due dates with one predictable repayment.
Fixed end date
Unlike a credit card, a set term means you know when you'll be debt-free.
Honest comparison
We compare the total cost of consolidating against staying as you are.
Close the cards
We recommend closing paid-out cards so debt doesn't creep back.
Is debt consolidation right for you? Signs it helps and signs it won't
Consolidation helps most with several high-interest debts, steady income and a plan to stop using paid-out cards. It won't fix a budget gap; if you're struggling, the National Debt Helpline (1800 007 007) offers free counselling.
Read the full explanation
Consolidation tends to help when you have several higher-interest debts, a steady income and a genuine plan to stop using the cards you pay out. A single loan with a fixed term gives you one repayment and a set finish date, which can make budgeting simpler and keep you focused. It also works best when the new loan's total cost, including fees, is lower than what you would pay by sticking with your current debts.
It is less likely to help if your spending keeps outpacing your income, if a longer term would mean paying more interest overall, or if repayments are already hard to meet. A new loan won't fix a budget gap. If you are struggling to keep up, the National Debt Helpline on 1800 007 007 offers free, confidential financial counselling and can talk to creditors on your behalf. Your broker can then help you decide whether consolidation still makes sense.
- People paying several credit cards, store cards or BNPL
- Steady earners wanting one predictable repayment
- Anyone wanting a clear end date for their debt
- People whose credit has improved since borrowing
Pros and watch-outs
Pros
- One repayment and one due date
- A fixed term gives a clear payoff date
- May cut interest when moving from high-rate cards
- Can make your budget easier to track
Watch-outs
- !A longer term can mean more interest overall
- !Fees can cancel out savings on smaller debts
- !Open paid-out cards can lead to new debt
Costs and fees to compare
The interest rate is only part of the cost. Ask your broker to show these side by side.
Establishment fee
Most personal loans charge an upfront fee, possibly added to the loan. Include it in total cost.
Ongoing account fees
Some lenders charge a monthly fee for the loan's life, adding up over a long term.
Early repayment fees
Fixed-rate loans may charge for early payoff. Check if you expect to repay faster.
Existing debt payout costs
Current loans may have exit or closure fees. Ask each provider for a payout figure.
Total interest over the term
A lower repayment over a longer term can cost more overall. Compare total repayable.
Tips to strengthen your application
- 1List each debt's balance, rate, fees and minimum repayment first.
- 2Compare the new loan's total repayable with your current path.
- 3Close or reduce paid-out card limits straight away.
- 4Choose the shortest term you can comfortably afford.
What you’ll need
What you’ll need
- Driver's licence or passport
- Two recent payslips, or tax returns if self-employed
- Last 90 days of bank statements
- Current debts and regular expenses
- Recent statements for each debt to consolidate
What lenders look for
- 18+, Australian citizen or permanent resident (some lenders consider visa holders)
- Regular, provable income
- A credit history your broker can explain, blemishes included
- Repayments that comfortably fit your budget
First chat to funds in four steps
How it works in detail →- 1Tell us what you’re after
- 2Meet your broker
- 3Compare and choose
- 4We handle the rest
Debt consolidation: common questions
Will consolidation save me money?
Often, if you are moving from high-interest cards to a lower-rate loan. But a longer term can mean paying more interest overall. Your broker will compare both before you decide.
Can I consolidate with a bad credit history?
Possibly. Some lenders specialise in helping people with past credit issues. Rates will be higher, so the numbers need to stack up.
Should I close my credit cards?
Usually, yes. Keeping cards open makes it easy to build the debt up again, and card limits count against your borrowing power.
Can I include my home loan?
Consolidating into a home loan is possible through refinancing, but it spreads short-term debt over a long term. Speak to your broker about the trade-offs.
Does debt consolidation hurt your credit score?
Applying for a new loan usually involves a credit enquiry, which is recorded on your file. Over time, making repayments on time and reducing your total credit limits can support a healthier credit profile. Your broker aims to approach a suitable lender first rather than making several applications.
What is the difference between debt consolidation and a debt agreement?
A consolidation loan is new credit that pays out your existing debts. A debt agreement is a formal arrangement under bankruptcy law that can seriously affect your credit and ability to borrow for years. The National Debt Helpline on 1800 007 007 can explain your options for free before you commit to either.
Can I consolidate buy now pay later debts?
Often, yes. Many lenders will pay out BNPL balances along with cards and personal loans. It is worth closing those accounts afterwards, as BNPL limits can also be considered when lenders assess future applications.
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