Debt Consolidation Loans

A debt consolidation loan can help you to get out of debt sooner. By combining all your debts into one personal loan you can save on interest repayments. Check out the table below for some of the current deals on the market.

Read more

Choosing a loan to consolidate debt.

If you are finding it hard to stay on top of all of your loan, credit card and store card repayments, a personal loan could help you to get out of debt sooner and avoid bad credit. To find the best debt consolidation loan it is good idea to use a debt consolidation calculator to work out what your monthly repayments will be before you apply.

What interest rates will I have to pay on debt consolidation loans?

The interest rate on debt consolidation loans will depend on a number of factors including whether you are taking out a secured or unsecured debt consolidation loan. A secured loan will usually have a lower rate because you are putting up an asset as security.

Do these loans have fees?

Yes. Standard fees on debt consolidation loans include an application fee, loan service fee and default fees if you miss a repayment or don’t make the full repayment amount. You may also have to pay an early termination fee if you pay out your loan early.

Is it easy to qualify for a debt consolidation loan?

Each Australian banking provider has its own criteria for consolidation loan qualification so it will depend on the amount of debt you’re in and your credit history. It is unlikely you will qualify for an unsecured loan if you have bad credit history, have been bankrupt in the last 10 years, or you are currently unemployed.

Debt consolidation personal loan comparisons on Mozo - rates updated daily

Want more? Compare all 196 personal loans in the Mozo comparison engine.

Compare more personal loans

*The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

**Representative example figures and monthly repayment figures are estimates only, based on the advertised rate, mandatory fees, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

 

Switch & Save Calculator

Compare savings from over 100 personal loans. How much could you save by switching your personal loan? Find out in a few clicks.

Get started

Advertisement

Personal Loan Resources

Reviews, news, tips and guides to help find the best personal loan for you.

Debt consolidation loans, why compare?

When you've got debt accruing on everything from your car loan to your credit card, a debt consolidation loan can be a helpful banking product, as you can roll over all your varying debt into one easy to manage personal loan.

Apart from the benefit of saying goodbye to multiple payments as you'll only have one monthly repayment, you'll also get the chance to reduce the interest rates you're paying, particularly if you're consolidating high rate credit or store cards into the new loan. This should mean big savings for you in the long run.

Say you have the following debt:

  • $20,000 car loan with a 9% interest rate
  • $5,000 credit card balance with a 22% interest rate
  • $2,000 on your store card with a 18% interest rate

In this scenario, your monthly repayments would be $899 and over 3 years you would pay $5,373 in interest. Whereas if you rolled that $27,000 worth of debt into one single loan with a 8% interest rate, your monthly repayments would go down to $846 and you would pay just $3,459 in interest over 3 years - that's a total saving of $1,914 in interest.

Debt consolidation loan must dos

What are the DON'Ts for consolidating debt?

Personal Loan Reviews

ANZ
ANZ personal loan review
Overall
6/10
Lots of options

ANZ have flexible payment plans if you have unexpected circumstances.

ANZ have flexible payment plans if you have unexpected circumstances.

Price
7/10
Features
6/10
Customer service
8/10
Convenience
7/10
Trust
3/10

Lisa | Victoria

reviewed about 1 month ago

ANZ
ANZ personal loan review
Overall
6/10
Lots of options

ANZ have flexible payment plans if you have unexpected circumstances.

ANZ have flexible payment plans if you have unexpected circumstances.

Price
7/10
Features
6/10
Customer service
8/10
Convenience
7/10
Trust
3/10

Lisa | Queensland

reviewed about 1 month ago

Westpac
Westpac personal loan review
Overall
9/10
efficient and great customer service always

This bank has a long and strong privacy and security ethic in the 20 plus years I have banked...

This bank has a long and strong privacy and security ethic in the 20 plus years I have banked with them. They are innovative and flexible and competitive with great, always pleasant customer service.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
9/10
Trust
10/10

Julie | New South Wales

reviewed about 1 month ago

Personal loan Guides

Calculators