Debt Consolidation Loans from 6.99% p.a.

How Debt Consolidation Saves You Money

The average Australian household carries over $3,000 in credit card debt, often spread across multiple cards charging interest rates of 18-22% per annum. When you add store cards, buy-now-pay-later balances, and existing personal loans, managing repayments becomes overwhelming and expensive.

Debt consolidation works by replacing all these separate debts with a single personal loan at a significantly lower interest rate. Instead of making five or six different payments each month to different creditors, you make one payment. The maths is straightforward: if you are paying an average of 20% across your debts and consolidate into a personal loan at 8-10%, the interest savings compound quickly over the life of the loan.

Consider a real example: someone with $15,000 across three credit cards at an average of 20% interest, paying minimum repayments, would take over 30 years to clear those debts and pay more than $30,000 in interest alone. Consolidating that same $15,000 into a 5-year personal loan at 9.99% means paying just $3,948 in total interest and being completely debt-free in 60 months.

When Does Debt Consolidation Make Sense?

Debt consolidation is not a one-size-fits-all solution. It works best in specific situations, and understanding when it is appropriate helps you make an informed decision.

It makes sense when: you have multiple debts with high interest rates, particularly credit cards above 15%. If your total unsecured debt is between $5,000 and $75,000 and you have a stable income, consolidation is almost always beneficial. It also makes sense if you are finding it difficult to track multiple payment dates and minimum amounts, leading to late fees or missed payments.

Exercise caution when: you have very small debts that will be paid off within a few months anyway, as the savings may not justify the application. Also be mindful if the underlying spending habits have not changed — consolidating debt only to run up the credit cards again creates a worse situation. We recommend closing credit card accounts after consolidation to avoid this trap.

Our brokers conduct a thorough cost-benefit analysis before recommending consolidation. We calculate the total cost of your current debts versus the total cost of a consolidation loan, including any break fees or establishment fees, to ensure you genuinely come out ahead.

Types of Debt Consolidation Loans

We offer two main types of consolidation loans, each suited to different circumstances:

Secured consolidation loans use an asset (typically a car, motorcycle, or term deposit) as security. Because the lender has reduced risk, they can offer significantly lower interest rates — often from 6.99% p.a. This is the best option if you own a vehicle or other qualifying asset and want the lowest possible rate. Loan amounts up to $75,000 are available.

Unsecured consolidation loans do not require any asset as security. Approval is based on your income, employment, and credit profile. While rates are slightly higher (from 7.99% p.a.), the application is faster and there is no risk to your personal property. These are ideal for consolidating smaller amounts or if you do not have a suitable asset to offer as security.

For borrowers with past credit issues, our specialist lender partners offer consolidation loans tailored to rebuilding your financial health. Rates start from 12.99% p.a. for bad credit applicants, which is still significantly lower than most credit card rates.

The Consolidation Process: What to Expect

We have streamlined the debt consolidation process to be as straightforward as possible. Most applications are approved within 1-3 business days, and we handle the payout to your existing creditors directly. Here is what happens from the moment you reach out:

First, we conduct a free assessment of your current debts, interest rates, and financial situation. This involves no credit check and no obligation. We then compare options across our panel of 50+ lenders to find the best consolidation loan for your circumstances, including the total cost of switching versus staying with your current arrangements.

Once you choose a product, we prepare and submit your application with all supporting documentation. After approval, the new lender disburses funds directly to your existing creditors to close out those accounts. You then have a single, manageable repayment at a lower rate — and a clear debt-free date to work towards.