Five repayments every month? The idea is to make it one.
A credit card at 21%, a personal loan, a bit of buy-now-pay-later — different rates, different due dates, all draining at once. Consolidation rolls them into a single repayment at (ideally) a much lower rate. Done well, it saves you real money and mental load. Done carelessly, it can quietly cost you more. We'll show you the honest version of both, and only recommend it if you come out ahead.
Many debts, one repayment.
The appeal is simple: replace a handful of high-rate debts and due dates with a single, lower-rate repayment you can actually keep on top of.
one lower rate
A single due date, a clear payoff, and — structured properly — meaningfully less interest than the cards were charging.
Sources: RBA Statistical Table F5 — credit card standard rate 20.99% p.a.; owner-occupier discounted variable ~6.8% p.a. Personal loan market average ~12% p.a. (Canstar, 1 Jul 2026). BNPL has been regulated as credit under the National Credit Code since 10 June 2025. Rates are indicative and your actual rate depends on the lender and your circumstances; always compare the comparison rate.
A lower monthly repayment isn't the same as paying less.
This is the trap ASIC warns about. Roll a card balance into a 25-year home loan and the monthly payment plummets — but stretched over decades, the total interest can end up far higher. Same debt, two very different outcomes:
Illustrative only — assumes $30,000 at the rates and terms shown, principal & interest, fees excluded; not a quote or an offer. The lower monthly figure frees up cash flow, which can be the right call — but only if you understand the lifetime cost, and ideally keep paying it down faster. This is exactly the trade-off we model with you, and how we structure a consolidation so you genuinely get ahead (for example, splitting the term or keeping repayments up).
Australians carry a lot of high-rate debt.
The maths of consolidation works because revolving credit is expensive and household budgets are stretched. The numbers, from the RBA:
Sources: RBA Statistical Tables F5 (card rate), C1 (card balances) and E2 (household finances). Card debt accruing interest is the balance actually costing you — the part consolidation targets.
Each has a real trade-off. We'll pick the honest fit.
A new personal loan
Into your home loan
Balance-transfer card
Before you consolidate — the ASIC checklist
ASIC MoneySmart's guidance is worth taking seriously: compare the new rate and all fees against your current debts; watch for establishment, valuation and exit costs; and remember that securing former unsecured debt against your home puts the home at risk if you can't repay.
If consolidating would cost you more overall, it isn't worth it — and we'll tell you so plainly.
General information (ASIC MoneySmart), not personal advice. We're bound by responsible-lending law (NCCP Act 2009, ASIC RG 209) to ensure a loan is not unsuitable for you.
Struggling right now? Talk to someone free first.
If you're behind on payments or under real pressure, a new loan isn't always the answer — and free help exists before you borrow. Financial counsellors are independent, free and confidential.
National Debt Helpline — 1800 007 007. There's no shame in the call; it's often the smartest first move, and we'll happily point you there rather than sell you a loan you don't need.
National Debt Helpline is a free, not-for-profit financial counselling service (via ASIC MoneySmart).
Debt consolidation, answered straight.
How does debt consolidation actually work?
You take out one new loan (or use your home loan) to pay out several existing debts, leaving you with a single repayment — ideally at a much lower rate than the cards and store accounts you're clearing. The aim is less interest and one manageable due date.
Will I end up paying more in total?
You can, and this is the key thing to get right. A lower monthly repayment often comes from a longer term, which can mean more total interest — especially rolling short-term debt into a 25-year home loan. We model the total cost, not just the monthly figure, and structure it (or advise against it) so you actually come out ahead.
Is debt consolidation right for everyone?
No. It works best when you can genuinely access a lower rate, you'll stop adding new debt, and the numbers show a real saving. If you're in hardship, free financial counselling (National Debt Helpline, 1800 007 007) may be the better first step — and we'll say so.
Can I consolidate with bad credit?
Sometimes — specialist lenders consider impaired credit, though usually at a higher rate. If the new rate isn't meaningfully better, consolidating may not help; we'll be honest about whether it stacks up for you.
What documents do I need?
Typically ID, recent statements for the debts you want to clear, and evidence of income. If we're consolidating into a home loan, we'll also need property and existing mortgage details. We give you a specific list up front.
Can I still use my credit cards after consolidating?
You can, but it's usually the fastest way to undo the benefit — you clear the cards, then run them back up, and now you have both. Most people do best closing or hard-limiting the cleared accounts.
How quickly can it be approved?
A personal-loan consolidation can move quickly — often conditional approval within a day or two once documents are in. A home-loan-based consolidation follows normal refinance timing. It depends on the lender and your situation.
Which lenders do you compare?
We compare consolidation options across our panel of 50 lenders — banks and non-banks — but not every product or lender in the market. We match your situation to the ones likely to price and approve it well.
See whether it actually saves you.
Tell us what you owe and to whom — we'll model the honest total cost and only recommend consolidating if you come out ahead. No credit check to start.
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