Combine Loans – Achieve Freedom Fast (2026 Guide)

In today's financial landscape, juggling multiple loans can feel overwhelming and financially draining. If you're wondering whether you can combine loans to streamline your repayments and potentially save money, you're not alone. Many Australians are exploring this option to simplify their finances and regain control over their monthly budgets.

Understanding Loan Consolidation

Loan consolidation involves merging multiple loans into a single loan with one monthly repayment. This can be particularly beneficial if you're managing several high-interest debts, as it may reduce your interest rates and simplify your financial obligations. Essentially, it's about finding a more manageable way to handle your debts by combining them into one.

Current Loan Consolidation Options in Australia

In 2026, Australian borrowers have a variety of loan consolidation options available, catering to different needs and financial situations. Interest rates for these loans typically range between 6.49% and 12%, depending on factors such as your credit score, the type of loans being consolidated, and the lender you choose.

Common types of loans that can be consolidated include:

• Personal loans
• Credit card debts
• Car loans
• Student loans

Eligibility for loan consolidation usually requires a stable income, a reasonable credit score, and a manageable level of existing debt. Lenders may also consider your employment history and financial assets when assessing your application.

Lender	Interest Rate Range	Loan Features
Lender A	6.49% - 8.5%	No early repayment fees, flexible terms
Lender B	7% - 9.5%	Redraw facility, online management
Lender C	8% - 12%	Fixed and variable rates available

Steps to Combine Your Loans

Combining your loans can be a strategic move towards financial freedom. Here’s how you can get started:

1. Assess Your Financial Situation: Calculate your total debt, interest rates, and monthly repayments. Understanding your current financial position is crucial before making any decisions.
2. Research Lenders: Explore the market to find lenders that offer competitive rates and favourable terms. Esteb and Co, with access to over 83 lenders, can provide a comprehensive view of your options.
3. Check Eligibility: Review the eligibility criteria for loan consolidation with your chosen lender. Ensure you meet the requirements to improve your chances of approval.
4. Apply for Consolidation: Submit your application with all required documentation, such as proof of income, identification, and a list of debts to be consolidated.
5. Review and Sign the Agreement: Once approved, carefully review the loan agreement, paying attention to interest rates, fees, and repayment terms before signing.
6. Consolidate and Simplify: Once the consolidation is complete, ensure all previous loans are closed and start making your single monthly repayment.

Expert Tips and Considerations

While loan consolidation can offer significant benefits, consider these expert tips to ensure you make the best decision:

• Beware of Fees: Be mindful of any hidden fees or charges associated with loan consolidation, such as early repayment penalties or application fees.
• Maintain Good Financial Habits: Consolidation can ease financial pressure, but maintaining good spending and saving habits is crucial for long-term success.
• Consider Fixed vs. Variable Rates: Fixed rates offer stability, while variable rates may provide savings if interest rates decrease. Choose based on your financial goals and risk tolerance.
• Utilise Professional Advice: Consult with a mortgage broker or financial advisor to tailor a consolidation plan that aligns with your unique circumstances. Esteb and Co can assist in navigating the complexities of loan consolidation.

Frequently Asked Questions

1. Can I consolidate secured and unsecured loans together?

Yes, it's possible to consolidate both secured and unsecured loans, but the specifics depend on the lender's policies and your financial situation.

2. Will consolidating loans hurt my credit score?

Consolidating loans can initially impact your credit score due to the credit inquiry, but over time, it may improve your score by simplifying payments and reducing the risk of missed payments.

3. How long does the loan consolidation process take?

The process can take anywhere from a few days to several weeks, depending on the lender and the complexity of your debts.

4. Can I consolidate loans if I have a bad credit score?

It's more challenging, but not impossible. Some lenders specialise in helping borrowers with poor credit, though you may face higher interest rates.

5. What happens to my previous loans after consolidation?

Once your consolidation loan is approved, the funds are typically used to pay off your existing loans, which should then be closed.

6. Is loan consolidation the same as refinancing?

While both involve taking out a new loan, consolidation merges multiple debts into one, whereas refinancing typically involves a single loan to reduce interest rates or change terms.

7. Can I include my mortgage in the loan consolidation?

In some cases, yes. However, it's essential to consider the implications, as adding unsecured debt to a secured mortgage can increase financial risk.