Loan to Pay Off Debt – Find Relief Fast (2026 Guide)

Dealing with multiple debts can feel overwhelming, especially when you're juggling high-interest rates and various repayment schedules. If you're in Australia and wondering if you can get a loan to consolidate and pay off your debt, you're not alone. Many Australians are exploring this option as a way to regain control of their finances and reduce stress.

Understanding Debt Consolidation Loans

Debt consolidation loans are designed to simplify your debt management by combining multiple debts into a single loan. This means you’ll only have one repayment to manage each month, often at a lower interest rate than your original debts. By consolidating your debts, you may not only reduce your monthly payments but also improve your cash flow and potentially save money on interest over time.

Current Market Rates and Requirements

As of 2026, the Australian financial market offers a variety of debt consolidation loan options with interest rates typically ranging from 6.49% to 12%. The rate offered to you will depend on several factors including your credit score, income, and the total amount of debt you wish to consolidate.

Eligibility criteria for these loans generally include:

• A stable income source to ensure you can meet repayment obligations.
• A reasonable credit score, though options exist for those with less-than-perfect credit.
• Proof of identity and residency in Australia.

Below is a comparison of typical features of debt consolidation loans from various lenders:

With access to over 83 lenders through Esteb and Co, you have a wide array of choices to find a loan that fits your needs.

Steps to Secure a Debt Consolidation Loan

Here's a step-by-step guide to help you secure a debt consolidation loan:

1. Assess Your Debt: Start by listing all your current debts, including their interest rates and monthly payments.
2. Check Your Credit Score: A good credit score can help you secure a better interest rate. Obtain a free credit report and review it for any inaccuracies.
3. Determine Your Loan Amount: Calculate the total amount you need to pay off your existing debts.
4. Research Lenders: Use resources like Esteb and Co to compare offers from over 83 lenders and find the best terms available.
5. Apply for the Loan: Once you've chosen a lender, submit your application along with the necessary documentation.
6. Receive Loan Approval: If approved, the lender will disburse funds, which you can then use to pay off your existing debts.
7. Start Repayment: Make sure to make your monthly payments on time to avoid any penalties and to improve your credit score.

Expert Tips and Considerations

When considering a debt consolidation loan, keep the following tips in mind:

• Be Wary of Fees: Some loans may have origination fees or early repayment penalties. Ensure you understand all costs involved.
• Consider the Loan Term: While longer terms may lower monthly payments, they could increase the total interest paid over time.
• Maintain Financial Discipline: Avoid accumulating new debt post-consolidation to achieve financial freedom faster.
• Seek Professional Advice: Financial advisors can provide personalised advice tailored to your situation and help you make informed decisions.

Frequently Asked Questions

• Can I get a loan with a low credit score?
  Yes, though options may be limited, there are lenders who specialise in loans for those with less-than-perfect credit.
• Will consolidating my debt hurt my credit score?
  Initially, applying for a new loan might cause a slight dip, but timely repayments can improve your score over time.
• Is a secured loan better than an unsecured loan?
  Secured loans often have lower interest rates, but they require collateral. Unsecured loans do not, but may have higher rates.
• How quickly can I get a debt consolidation loan?
  Approval times vary, but you could receive funds within a few days if all documentation is in order.
• Can I consolidate other types of debt?
  Yes, you can typically consolidate credit card debt, personal loans, and other unsecured debts.
• What happens if I miss a payment?
  Missing payments can lead to fees and negatively impact your credit score, so it's important to manage payments carefully.
• Can Esteb and Co help me find the best loan?
  Absolutely, with access to over 83 lenders, Esteb and Co can assist in finding a loan that best suits your needs.