Debt Consolidation

Ready to consolidate your debt and save on interest and fees? Here’s how you can get your finances back in control.

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How does debt consolidation work?

Debt consolidation involves opening another credit account to pay off your existing debt. This can be done with a personal loan, a credit card or a home equity loan. By opting to pay off your other debts and maintain a single credit account, you can reduce how much fees and interest you're paying. This can help you save money and get out of debt faster.

When should I consider debt consolidation?

  • You have multiple debts with different fees. These could include debts from credit cards, personal loans, car loans or student loans.
  • You're struggling to make repayments for the different debts you owe.
  • You're looking for a cheaper way to pay off your debts.
  • You find that keeping track of all your debts is confusing and/or overwhelming.

How can I consolidate my debt?

The best way to consolidate your debt will depend on a number of factors. These include how much you owe, the type of debt, your financial situation and eligibility for each option. The table below will guide you through the options available. We've also included what these loans are suitable for.

Debt consolidation personal loanBalance transfer credit cardMortgage refinancing
How it worksTake out a new loan with a lower rate and pay off your other debts.Transfer loan or credit card debt to a new card with a 0% interest rate.Use the equity in your home as a line of credit to pay off your debt.
CostPay around 12% p.a. Up to 7 years. Some fees may apply.Pay 0% for about 2 years. Some fees may apply.Pay about 5% for as long as you need. Fees may apply.
Accepted debt amounts$2,000 to $50,000$500 to $8,000$40,000 +

For personal loan debt.

This is one of the most common ways people choose to consolidate or refinance their existing personal loan debt.

How does it work?

Take out a new personal loan, one with lower interest and fees than your current loan. By paying off the higher interest debt, you can bring down your total repayments and save money.

For credit card debt.

This may be a good option if you don't mind paying interest or you have more than a few thousand dollars' worth of debt and you're unlikely to move the full amount to a new credit card.

How does it work?

Apply for a lump sum to cover your credit card debt and use that money to pay off your card's balance. In exchange, you receive a regular payment structure and longer payment terms.

For personal loan and credit card debt.

You can apply to consolidate both personal loan and credit card debt at the same time with a new personal loan. You will first have to work out how much in fees you're paying across all your accounts. You also need to factor in any exit or early repayment fees.

For personal loan debt.

A handful of credit card providers (Citi, Virgin Money, Qantas Money and Coles) allow you to balance transfer personal loan debt.

How does it work?

You can apply for a new credit card and transfer the loan debt onto the card. You will then pay a promotional 0% p.a. rate for a limited period of time. After that, the standard rate (usually above 20% p.a.) will apply. Most credit cards only allow you to transfer about 80% of your approved credit limit. This means that even if you're approved for a $10,000 credit limit, you may only be able to transfer $8,000. Anything more than $8,000 will still be left on your loan. You should make sure you can transfer enough to make this option worthwhile.

For credit card debt.

This is the most common way to consolidate credit card debt. You basically have to apply for a new card and move what you already owe onto it. You can save with a low or 0% rate, and take advantage of the low or no interest to pay off your debt.

For personal loan and credit card debt.

You can apply to consolidate both personal loan and credit card debt at the same time on cards from the providers listed above. First, make sure the balance transfer limit is high enough for this to work.

For personal loans, credit cards, and both.

If you have a mortgage, you have the option of taking out a home equity loan to consolidate and pay off your other debts. This option should only be used if you can be disciplined with your repayments and can build back your equity relatively quickly.

How does it work?

It will function as a line of credit, where you'll pay for what you borrow, not the entire credit limit given to you. This option can seem cheaper as home loans offer lower rates. But it is risky, difficult to manage and has no end-date. This can offset any savings earned with higher interest in the long run. Make sure you do the calculations to see if this option is economical. Interest, upfront fees and ongoing fees may be applicable.

Compare Debt Consolidation Personal Loans

1 - 4 of 4
$
years
Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
Fixed1 - 7 Years $2,001 - $75,000
Interest Rate (p.a.)
6.57%
to 18.99%
Comp. Rate (p.a.)
7.19%
to 21.78%
Application Fee
1.50% - 6%
min. $250
Monthly Fee
$0
Monthly Repayment
$627.42
Go to siteMore Info
Finder award winnerFixed18 Months - 7 Years $5,000 - $50,000
Interest Rate (p.a.)
6.75%
to 21.50%
Comp. Rate (p.a.)
6.75%
to 21.50%
Application Fee
$0
Monthly Fee
$0
Monthly Repayment
$615.26
Go to siteMore Info
Variable2 - 7 Years $5,000 - $70,000
Interest Rate (p.a.)
9.49%
to 29.99%
Comp. Rate (p.a.)
10.37%
to 33.28%
Application Fee
0% - 5%
Monthly Fee
$13
Monthly Repayment
$685.59
Go to siteMore Info
Fixed1 - 7 Years $5,000 - $75,000
Interest Rate (p.a.)
6.99%
to 18.49%
Comp. Rate (p.a.)
7.24%
to 18.76%
Application Fee
$175
Monthly Fee
$0
Monthly Repayment
$622.85
Go to siteMore Info
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5 things to consider before consolidating your debt

Say you have $20,000 worth of personal loan debt you wish to consolidate.

You're currently paying 19.99% p.a. in interest, with a loan term of 5 years. Your monthly payments will be $540 plus $10 monthly fees. At the end of the 5 years, you would have paid over $12,300 in fees and interest alone.

Let's say you've found a debt consolidation loan for the $20,000 debt you owe.

The new loan charges 11.99% in interest over 5 years, and doesn't charge a monthly fee. This means your monthly payments work out to $455. You would have paid $6,687 in interest.

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By consolidating your debt and choosing a product with a lower rate and fees, you could save $5,699 in total. How much you can save will depend on your risk profile and eligibility, so be sure to compare your options and read the fine print.

What are the benefits and what should I be aware of?

The benefits

  • Save money. By rolling all your debts into one account, you'll be paying one fee and one interest rate. This will likely reduce how much you're paying for fees and interest.
  • Simplify your debts. You will have one monthly repayment to make, one lender to deal with, one set of fees to track and one rate of interest to remember.
  • Pay off your debts. Instead of multiple credit accounts, you maintain a single account. You get to pay off your debts, avoid defaulting and, in the worst case, bankruptcy.

Be aware of

  • Confusing jargon. Watch out for certain "debt consolidation solutions" that are actually a Part 9 Debt Agreement. This is basically a form of bankruptcy and will have long term repercussions on your credit score.
  • High rates and fees for bad credit borrowers. If you have a bad credit score, you're likely to be charged higher rates and fees.

How can I consolidate my debt if I have bad credit?

While having bad credit can limit your options, debt consolidation is still possible. It may involve entering into a Part 9 Debt Agreement. But there are other options available. It may involve higher interest rates and fees.

  • An unsecured personal loan with a specialist lender. Some lenders offer large, unsecured personal loans for people with bad credit. Interest rates are higher than with standard personal loans, but you may still be able to reduce what you're currently paying.
  • A Part 9 Debt Agreement. Debt Agreements are a form of bankruptcy. It is an option for people with large debts that they are unable to repay. The financier will negotiate with lenders on behalf of you, and your debts won't accrue more interest. However, this agreement will be listed on your credit file for 5 years from the date you enter into it. This can have long-term consequences for your credit score and ability to get credit in the future.

What happens if my application is rejected?

If your application is rejected, here's what you should do:

  • Wait 3-6 months before applying for another loan. Applying for multiple loans in a short period of time can affect your credit score. Waiting before reapplying may lower your risk of rejection
  • Before reapplying, look into why your application was rejected. If your credit score played a role, you can work on improving your score. Paying your bills on time and building your savings can help. Your credit report gets updated every month, so good financial habits can help improve your score.
  • Keep an eye on your credit report (you can access it for free) and once you're in the clear, you can consider applying again.
  • Consider paying off your small debts so that you won't have to apply for a large loan. It may be easier to get approved for smaller amounts.

Why compare personal loans with Finder?

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Frequently asked questions

More guides on Finder

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    Looking to consolidate your debt? Salt and Lime offers fee-free loans, same-day funding, and the ability to earn discounts on your interest over the life of the loan. Apply today.

  • Insolvency vs bankruptcy

    Want to understand the differences between personal insolvency and bankruptcy, and what both of these terms mean for your financial future? Find out here.

  • What are the consequences of bankruptcy?

    This guide will take you through the consequences of bankruptcy so you can decide if it's the right option for you.

  • Debt negotiation

    What is debt negotiation and how can it help you? Find out here.

  • What you’re doing wrong that keeps you in debt

    It doesn't matter how long you've been in debt or how much debt you have, there are strategies you can use to free yourself from any kind of debt trap. Use our guide to see how you can set yourself on the road to regaining financial control, and getting out of debt once and for all.

Personal Loan Offers

Important Information*
Logo for OurMoneyMarket Personal Loan
OurMoneyMarket Personal Loan

You'll receive a fixed rate from 6.57% p.a. to 20.99% p.a. based on your risk profile
A personalised loan from $2,001 to $75,000 that varies based on your credit history and financial situation.

Logo for ANZ Fixed Rate Personal Loan
ANZ Fixed Rate Personal Loan

You'll receive a rate from 6.99% p.a. to 18.49% p.a. with a comparison rate from 7.69% p.a. to 19.09% p.a. if you're approved.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants. T&C's apply.

Logo for NAB Personal Loan Unsecured Fixed
NAB Personal Loan Unsecured Fixed

You'll receive a fixed rate between 6.99% p.a. and 19.99% p.a. ( 7.91% p.a. to 20.83% p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 years to 7 years loan terms available. This loan comes with no fees for extra repayments and no early exit fees.

Logo for NOW Finance No Fee Unsecured Personal Loan
NOW Finance No Fee Unsecured Personal Loan

You'll receive a fixed rate between 6.75% p.a. and 20.95% p.a. based on your risk profile
Apply for loans from $5,000 and get a dedicated loan manager. No security required.

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51 Responses

    Default Gravatar
    CherylOctober 25, 2018

    Want to consolidate debt of around $50000
    Can someone help us

      Avatarfinder Customer Care
      JohnOctober 25, 2018Staff

      Hi Cheryl,

      Thank you for reaching out to finder.

      It looks like we are on the correct page to check on a panel of lenders who could assist you on your query.You may choose, depending on the debt that you have on the three tabs located on the page for Debt consolidation loans, Balance transfer credit cards for personal loans or Home Equity refinance. Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.Hope this helps!

      Cheers,
      Reggie

    Default Gravatar
    DarrenOctober 4, 2018

    Need help have bad credit and currently owe $50,000 in personal loans and credit cards. Need to consolidate loans into one payment not sure how this is done

      Avatarfinder Customer Care
      CharisseOctober 5, 2018Staff

      Hi Darren,

      Thanks for reaching out to Finder.

      Even if you have bad credit, it’s not completely impossible to find lenders who can help you consolidate your debts.

      You may compare lenders offering bad credit debt consolidation loans. You can click on the “Go to site” button of your preferred lender to be redirected to their website where you can learn more about their loan offer and start your loan application.

      Before applying for any loan, please review the eligibility criteria and read through the terms and conditions to see if it best suits your needs.

      I hope this helps.

      Cheers,
      Charisse

    Default Gravatar
    NeilSeptember 8, 2017

    I am looking someone to help me get the low rate personal loan to pay off my credit cards and the money I borrowed from friends. So that I can have one fix repayment coming out every fortnight.

      Default Gravatar
      GruSeptember 9, 2017

      Hello Neil,

      Thanks for reaching out to Finder.

      This page provides a list of lenders that can help you consolidate your existing debt. You can use our comparison table above to help you find the right lender. While we don’t provide a specific product recommendation, you can use the table to narrow down your options. Simply, enter the amount you need to pay off your existing card and your friend followed by your repayment term then press “Calculate”.

      You can click the name of the lender or the “More info” link to be redirected to our review page and learn more about the lender’s loan offer, rates, and requirements as well as the pros and cons of using their loan service. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

      Cheers,
      Gru

      Default Gravatar
      NeilSeptember 9, 2017

      Hi Gru,
      Thank you for reply. I understand these options. But I was looking for someone who helps me apply for loan. I don’t know which financial institution to choose to get guaranteed loan. Also I have few personal questions that are related to my current financial situation.
      Is there anyone I can talk too?

      Default Gravatar
      GruSeptember 9, 2017

      Hello Neil,

      Thanks for reaching out to Finder.

      Finding a personal loan can indeed take a lot of time, effort, and stress.

      If you prefer to speak to someone who can take your personal circumstance into account and offer you a range of borrowing options, you may consider using a personal loan broker. Personal loan brokers are handy for those with complicated situations or poor credit scores, who are typically rejected by traditional lenders.

      Please also feel free to view these pages to guide you and check if something would be suitable for you:

      To increase your chances of approval, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

      Cheers,
      Gru

    Default Gravatar
    KerrieAugust 16, 2017

    I am trying to find out how I go about consolidating my credit card and personal loans into one payment but not sure how to go about it

      Avatarfinder Customer Care
      HaroldAugust 16, 2017Staff

      Hi Kerrie,

      Thank you for your inquiry.

      It’s important to consider your options carefully. How much debt do you have and does it include loans and credit card accounts? Make sure you will be able to bring across all your accounts to consolidate. Please check our debt consolidation page for your available option.

      I hope this information has helped.

      Cheers,
      Harold

    Default Gravatar
    glennMarch 9, 2017

    recently discharged bankrupt 2 months ago.have 3 cash advances money3 total 520 p/week need a car and consolidate debt, 7000 owing on loans need about 8000 for car earning 1300 p/w permanent employment.

      Avatarfinder Customer Care
      MayMarch 11, 2017Staff

      Hi Glenn,

      Thanks for your question.

      Please check the list of bankrupt loans featured on our website so you can explore what options might be available for you. Please review the criteria, details of the loan product and contact the lender directly to discuss your loan options and eligibility.

      Cheers,
      May

      Default Gravatar
      RickkyJuly 11, 2017

      Hi Glenn, what is in page link?

      Default Gravatar
      JonathanJuly 13, 2017

      Hello Rickky,

      Thanks for your comment! :)

      It is the list of lenders who can offer loans for bankrupts.

      Hope this clarifies.

      Cheers,
      Jonathan

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