Debt consolidation
One repayment instead of five
Credit card interest of 20% or more compounds relentlessly. Consolidating into a fixed-term loan gives you a single rate, a single repayment, and a date the debt ends.
- Combine cards, personal loans, BNPL and store accounts
- One fixed repayment with a defined end date
- Often lower than the total of your current minimums
- Terms from 1 to 7 years
Free enquiry · 2 minutes · No credit check
Consolidation works because of how credit cards are built. Minimum repayments are calculated to keep the balance alive, not to clear it. Paying the minimum on a $15,000 card balance at 20% can take well over a decade and cost more in interest than the original debt.
A consolidation loan replaces those revolving balances with one amortising loan. Every payment reduces the principal. There is a final payment with a date on it.
When it genuinely helps
When your weighted average interest rate falls, when the total monthly commitment drops to something sustainable, and when the accounts being paid out are then closed. All three matter. Two out of three usually leaves people worse off within a year.
When it does not
Consolidation is a restructuring tool, not a solution to insufficient income. If the consolidated repayment still exceeds what you can comfortably afford, a loan delays the problem and adds a term to it.
It also fails when the cards rebuild. Roughly speaking, the person who consolidates and closes the accounts is out of debt in five years; the person who consolidates and keeps spending has doubled their debt in two. We will say plainly if we think that is the risk in your situation.
If your total debt is unmanageable rather than merely expensive, a financial counsellor is the better first call. The National Debt Helpline is free, independent and confidential on 1800 007 007. They are not selling anything.
To be considered you need to be 18 or over, an Australian citizen or permanent resident, currently working, and earning at least $30,000 a year before tax.
Past credit problems are not a barrier. Defaults, arrears and a low credit score are all things our lenders see every day. What matters is your income now, not the worst month you have had. If you are between jobs or your only income is a Centrelink payment, our panel cannot help — and we would rather tell you that up front than put an enquiry on your credit file that goes nowhere.
What to expect
A single date it ends
Fixed term, fixed repayment, defined finish. No open-ended revolving balance.
Usually a lower rate
Personal loan rates commonly sit well below credit card rates, which typically run around 20% or higher.
Simpler to manage
One direct debit instead of five due dates, five minimums and five chances to miss one.
Payout handled for you
Where the lender allows it, funds go directly to your existing creditors so old balances are cleared, not just funded.
Common questions
Answers, in plain terms
Will consolidating hurt my credit score?
There is usually a small short-term dip from the new enquiry and account. Over the following months, consistent on-time repayments on a single loan typically improve your score more than carrying several near-limit credit cards.
Can I consolidate if I have already missed payments?
Frequently, yes. Missed payments are common among people seeking consolidation — that is often what prompts the enquiry. Our panel includes lenders who look at current capacity rather than past conduct alone. You do need to be employed and earning at least $30,000 a year.
Should I close the cards afterwards?
We think so, and most of our lenders require it as a condition of approval. Consolidating without closing the accounts is how people end up with the loan and the card debt.
Can I include buy-now-pay-later?
Usually yes. Lenders increasingly treat BNPL as ordinary credit for assessment purposes, and several will pay it out as part of a consolidation.
Will my repayment definitely be lower?
Not automatically. A lower rate over a longer term reduces the monthly figure but can increase total interest. We show you both numbers so the trade-off is visible rather than buried.
Can I consolidate a tax debt or fines?
Generally not through a personal loan. ATO debts have their own payment arrangements, usually at lower cost than commercial credit. Speak to the ATO directly first.
Is consolidation always the right answer?
No. If your total debt is small, or your income cannot service the consolidated repayment, a loan may not help. Free financial counselling is available on 1800 007 007.
Costs and disclosures
The numbers, stated plainly
Every lender must publish a comparison rate. It folds the interest rate and the mandatory fees into one figure so products can be compared honestly. We show ours here rather than in the fine print.
Repayment period: minimum 1 year (2 years on loans under $10,000), maximum 7 years. Interest rates: 9.00% p.a. to 22.00% p.a. depending on security, credit history and the lender. Maximum comparison rate: 28.48% p.a. — the ceiling across all our products, being a $5,000 loan over 2 years at 22.00% p.a. On our representative $30,000 over 5 years basis, the maximum is 22.48% p.a.
Representative example: a $30,000 unsecured personal loan over 5 years at 13.00% p.a. (comparison rate 13.44% p.a.), with a $295 establishment fee and no monthly fee, has repayments of $682.59 per month and a total amount payable of $41,251.
Fees: establishment fee $205 (secured) or $295 (unsecured). No monthly service fee. Lenders may charge fees for missed payments or early payout — set out in your credit contract before you sign.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
See what you qualify for
Two minutes, no documents, and no impact on your credit score. We reply the same business day.