How should you consolidate debt after Christmas?

Balance transfer, debt consolidation loan or something else? Here's how to pay down your Christmas spending.

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So you've made it through another Christmas. It seems to get more expensive every year, doesn't it? If you didn't plan ahead and relied on credit to get you through the festive season, you're not alone. But don't worry – there is a range of debt consolidation personal loan options available to help you pay down the credit you racked up, whether it be on a credit card or a loan (or both!).

This guide will take you through the options that are available, the benefits and drawbacks of each and how you can compare personal loans to choose the right one for you.

What options do I have to consolidate Christmas debt?

To consolidate debt after Christmas you have two main options: a debt consolidation loan or a balance transfer credit card.

  • Debt consolidation personal loan. These loans are unsecured and allow you to bring a number of debts into one account. By consolidating separate credit accounts you may be able to reduce interest and fees. Debt consolidation personal loans are available with terms of between one and seven years and come with rates of between 7% p.a. and 15% p.a. You can also find providers that will let you borrow with bad credit.
  • Balance transfer credit card. If you have debt across one or more cards, you can consolidate your debt to a balance transfer credit card. These cards offer introductory rates of 0–3% p.a. that apply to the balance you transfer and can remain for as long as 24 months. As long as you repay the debt within that period and don't use the card for additional purchases, you can pay down your total debt at the promotional rate. Just keep an eye on balance transfer fees and annual fees.

Which Christmas debt consolidation option is right for me?

  • If you have loan debt: There are only two providers that let you balance transfer personal loan debt to a credit card: Citi and Virgin Money. So, if you don't want to opt for these providers or just want a wider comparison, a debt consolidation personal loan is the way to go.
  • If you have credit card debt: You have the option of a debt consolidation personal loan or a balance transfer credit card. The balance transfer will be the better option if you have a smaller amount that you are confident you can pay off within the balance transfer promotional period – this is because you will be charged less interest than a personal loan. However, if you have a larger debt or just want more regular repayments that guarantee your debt will be paid off if you keep them up, a debt consolidation personal loan is the one to consider.
  • If you have credit card and loan debt: You can also choose between a debt consolidation personal loan and a balance transfer credit card that also accepts personal loan debts. Just like if you have credit card debt only, the amount of debt you have and how you want to repay it will affect which one you should choose.

Compare personal loans and balance transfer credit cards for debt consolidation

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Harmoney Unsecured Personal Loan

Harmoney Unsecured Personal Loan

From

6.99 % p.a.

fixed rate

From

7.79 % p.a.

comparison rate

  • Borrow up to $50,000
  • 3 and 5 years terms
  • No hidden fees
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100% confidential application

Harmoney Unsecured Personal Loan

An unsecured personal loan up to $50,000. You'll receive a tailored interest rate between 6.99% p.a. and 25.69% p.a. based on your risk profile.

  • Interest rate from: 6.99% p.a.
  • Comparison rate: 7.79% p.a.
  • Interest rate type: Fixed
  • Application fee: $575 ($275 for loans of below $5,000)
  • Minimum loan amount: $2,000
  • Maximum loan amount: $50,000
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Data indicated here is updated regularly
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
Harmoney Unsecured Personal Loan

From 6.99% (fixed)
7.79%
$2,000
3 to 5 years
$575 ($275 for loans of below $5,000)
$0
You'll receive a fixed rate between 6.99% p.a. and 25.69% p.a. based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 years terms.
Plenti Fixed Rate Personal Loan

From 5.99% (fixed)
6.27%
$2,001
3 to 5 years
From $99 to $499
$0
You'll receive a fixed rate between 5.99% p.a. and 15.89% p.a. based on your risk profile
A flexible loan with amounts from $2,001 and terms starting from 3 years. Interest and comparison rates calculated for a loan term of 5 years.
Symple Loans Personal Loan

From 5.75% (variable)
6.47%
$5,000
1 to 7 years
from 0% to 5% of the loan amount
$10
You'll receive a personalised interest rate from 5.75% p.a. to 25.99% p.a. based on your risk profile
Borrow up to $50,000 to pay for what you need.
OurMoneyMarket Personal Loan

From 6.75% (fixed)
6.96%
$2,001
1 to 7 years
1.5–6% of your total loan amount
$0
You'll receive a fixed rate from 6.75% p.a. to 20.99% p.a. based on your risk profile
A personalised loan from $2,001 to $75,000 that varies based on your credit history and financial situation.
ANZ Fixed Rate Personal Loan
10.50% (fixed)
11.38%
$5,000
1 to 7 years
$150
$10
You'll receive a fixed rate of 10.50% p.a. ( comparison rate 11.38% p.a. )
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants. Note: These rates are available until 31 March 2021. Credit, eligibility criteria and terms & conditions apply.
Alex Personal Loan

From 6.95% (fixed)
6.95%
$2,100
6 months to 5 years
$0 (waived $295)
$0
You'll receive a fixed interest rate from 6.95% p.a. to 19.99% p.a. based on your risk profile
Borrow between $2,100 and $30,000 from 6 months to 5 years. Benefit from no ongoing fees. Note: Waived $295 establishment fee for all applications submitted before 15 February 2021.
SocietyOne Unsecured Personal Loan (2-3 years)

From 6.99% (fixed)
6.99%
$5,000
2 to 3 years
from 0% to 5% of the loan amount
$0
You'll receive a fixed rate between 6.99% p.a. and 17.99% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
SocietyOne Unsecured Personal Loan (5 years)

From 7.99% (fixed)
7.99%
$5,000
5 years
from 0% to 5% of the loan amount
$0
You'll receive a fixed rate between 7.99% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
CUA Unsecured Fixed Rate Personal Loan
9.39% (fixed)
9.64%
$5,000
1 to 7 years
$175
$0
You'll receive a fixed rate of 9.39% p.a.
An unsecured loan from $5,000 with flexible repayments and no monthly fee.
Latitude Personal Loan (Unsecured)

From 7.99% (fixed)
9.24%
$3,000
1 to 7 years
$250 (Loans under $5000 - $140)
$13
You'll receive a fixed rate between 7.99% p.a. and 22.99% p.a. based on your risk profile
Apply for what you need from $3,000 and use it for a range of purposes. Repay weekly, fortnightly or monthly. You can check your interest rate before applying with no impact to your credit score.
NAB Personal Loan Unsecured Fixed

From 9.99% (fixed)
10.88%
$5,000
1 to 7 years
$150
$10
You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.
ANZ Variable Rate Personal Loan
12.99% (variable)
13.86%
$5,000
1 to 7 years
$150
$10
You'll receive a variable rate of 12.99% p.a. ( comparison rate 13.86% p.a. )
A flexible loan with amounts starting $5,000 that offers flexible repayments and a redraw facility. Note: These rates are available until 31 March 2021. Credit, eligibility criteria and terms & conditions apply.
NOW Finance No Fee Unsecured Personal Loan

From 6.95% (fixed)
6.95%
$5,000
18 months to 7 years
$0
$0
You'll receive a fixed rate between 6.95% p.a. and 17.95% p.a. based on your risk profile
Apply for loans from $5,000 and get a dedicated loan advisor. No security required.
Wisr Personal Loan

From 7.95% (fixed)
8.22%
$5,000
3 to 5 years
$195 (Establishment Fee)
$0
You'll receive a fixed rate between 7.95% p.a. and 19.95% p.a. based on your risk profile
A loan from $5,000 that charges no fees for extra or early repayments. Keep in mind security is required in some cases.
Plenti Variable Rate Personal Loan

From 5.59% (variable)
6.25%
$2,001
1 to 3 years
From $99 to $499
$0
You'll receive a variable rate from 5.59% p.a and 12.89% p.a. based on your risk profile
A flexible loan with amounts from $2,001 and terms starting from 12 months. Benefit from transparent costs and a rate estimate before you apply.
CUA Unsecured Variable Personal Loan
11.89% (variable)
12.15%
$5,000
1 to 7 years
$175
$0
You'll receive a variable rate of 11.89% p.a.
Borrow from $5,000 with the option for flexible repayments and no monthly fees.
NAB Personal Loan Unsecured Variable Rate

From 9.99% (variable)
10.88%
$5,000
1 to 7 years
$150
$10
You'll receive a variable rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes. Benefit from fee-free additional repayments and a redraw facility. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.
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Fox Symes Debt Solutions

Fox Symes offers a range of debt consolidation options to help you if you're struggling with multiple debts.

Citi Credit Card Offer

Citi Rewards Card

0% p.a. for 30 months on balance transfers
$49 first-year annual fee

Offer ends 30 June 2021

Eligibility criteria, terms and conditions, fees and charges apply

Citi Credit Card Offer

Save with a long-term balance transfer offer and a first-year annual fee discount. Plus, Citi reward Points for your spending and complimentary insurance.

  • $49 first-year annual fee ($149 p.a. thereafter)
  • 0% p.a. on balance transfers for 30 months with no balance transfer fee, reverts to 22.24% p.a.
  • 21.49% p.a. purchase interest rate | 22.24% p.a. cash advance rate
  • Earn 1 Citi reward Point per $1 spent
  • Minimum credit limit of $6,000
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Credit cards with balance transfers

Data indicated here is updated regularly
$
% p.a.
Name Product Balance transfer rate Purchase rate Annual fee Amount saved
Citi Rewards Card
0% p.a. for 30 months
21.49% p.a.
$49 annual fee for the first year ($149 p.a. thereafter)
Save on interest with 0% p.a. on balance transfers for 30 months with no balance transfer fee. Plus, a $49 first-year annual fee.
Virgin Money No Annual Fee Credit Card
0% p.a. for 12 months
0% p.a. for 12 months, reverts to 18.99% p.a.
$0
Save with an ongoing $0 annual fee and 0% p.a. on balance transfers and purchases for 12 months.
Qantas Premier Platinum
0% p.a. for 18 months with 1% balance transfer fee
19.99% p.a.
$199 annual fee for the first year ($299 p.a. thereafter)
Get 100,000 bonus Qantas Points, 75 bonus Status Credits and a 0% p.a. balance transfer rate for 18 months (with a one-time 1% BT fee).
Citi Simplicity Card
0% p.a. for 6 months
0% p.a. for 6 months, reverts to 21.49% p.a.
$0
Get 0% p.a. interest for up to 6 months on purchases and balance transfers. Plus, a $0 annual fee for life.
Citi Clear Card
0.9% p.a. for 15 months
0.9% p.a. for 15 months, reverts to 14.99% p.a.
$99
Save with 0.9% p.a. for 15 months on purchases and balance transfers. Plus, complimentary purchase insurance cover.
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
0% p.a. for 26 months
20.74% p.a.
$64 annual fee for the first year ($129 p.a. thereafter)
Get 0% p.a. for 26 months on balance transfers and a reduced first-year annual fee. Plus, $129 Virgin Australia Gift Voucher per year.
Virgin Australia Velocity Flyer Card - Bonus Points Offer
0% p.a. for 12 months with 1.5% balance transfer fee
20.74% p.a.
$64 annual fee for the first year ($129 p.a. thereafter)
Earn up to 40,000 bonus Velocity Points (20,000/ month when you spend $1,500 in the first 2 months). Plus, save with a 0% balance transfer offer.
Citi Prestige Card
0% p.a. for 6 months
21.49% p.a.
$700
Enjoy 100,000 bonus reward Points, unlimited airport lounge access, hotel perks and more.
Qantas Premier Everyday
0% p.a. for 12 months
19.99% p.a.
$49
Get 20,000 bonus Qantas points, a 0% balance transfer offer and complimentary insurance covers.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 6 months
0% p.a. for 14 months, reverts to 20.74% p.a.
$64 annual fee for the first year ($129 p.a. thereafter)
Enjoy 0% p.a. interest on purchases for 14 months, a reduced first-year annual fee and Velocity Points per $1 spent.
Coles Low Rate Mastercard
0% p.a. for 6 months
12.99% p.a.
$58
Enjoy $100 off a Coles Supermarket shop and a 0% balance transfer for 6 months. Plus, earn Flybuys points as you spend. Ends 31 January 2021.
Coles No Annual Fee Mastercard
0% p.a. for 12 months
0% p.a. for 12 months, reverts to 19.99% p.a.
$0
Save on new and existing interest charges with 0% p.a. on balance transfers and purchases for 12 months. Ends 31 January 2021.
Coles Rewards Mastercard
0% p.a. for 18 months with 1.5% balance transfer fee
19.99% p.a.
$0 annual fee for the first year ($99 p.a. thereafter)
Enjoy $100 off a Coles Supermarket, a $0 first-year annual fee and a 0% p.a. on balance transfers for 18 months (1.5% fee applies). Ends 31 Jan 2021.
Citi Prestige Qantas Card
0% p.a. for 6 months
21.49% p.a.
$749
Receive 70,000 bonus Qantas Points. Plus, unlimited airport lounge access with Priority Pass and complimentary travel insurance.
Emirates Citi World Mastercard
0% p.a. for 9 months
21.49% p.a.
$149 annual fee for the first year ($299 p.a. thereafter)
Receive up to 60,000 bonus Skywards Miles and pay half the annual fee for the first year.
Virgin Money Low Rate Credit Card
0% p.a. for 15 months with 1% balance transfer fee
11.99% p.a.
$99
Offers 0% p.a. for 15 months on balance transfers (with a 1% BT fee) and a low ongoing purchase rate of 11.99% p.a.
Qantas Premier Titanium
0% p.a. for 6 months
19.99% p.a.
$1,200
Receive 150,000 bonus Qantas Points when you spend $5,000 in the first 90 days and earn 20% bonus Status Credits on eligible Qantas flights.
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Unfortunately, Fox Symes won't be able to help you at this stage. For more information on improving your credit learn more here.

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Fox Symes can help you take back control of large debts by consolidating what you owe.

Fill out this form to find out if you can benefit from:

  • Reducing your repayments
  • Saving interest
  • A range of debt consolidation options

How do I compare balance transfer credit cards?

There are a number of features to look for when choosing a balance transfer credit card:

  • Balance transfer interest rate. This is the promotional rate that will be applied to the debt that you transfer. Most cards offer a 0% p.a. rate, but you can find cards offering higher introductory rates around 3% p.a.
  • Balance transfer promotional period. How long will this promotional rate apply? This is the balance transfer period and essentially how long you'll have to repay your debt before the introductory rate changes to a higher, standard interest rate. These periods can be between 3 and 24 months.
  • Fees. Check whether a balance transfer fee applies and also check whether you will need to pay an annual fee for the card.
  • Revert rate. All balance transfer cards have a revert rate, which is the rate that will apply to your balance after the promotional period ends. It's usually the cash advance rate and is usually around 20–22% p.a.
  • Standard interest rates. What is the purchase rate and is it competitive? If you're planning to keep the card after you repay your debt, this is good to check.
  • Balance transfer limits and restrictions. Confirm how much you are able to transfer. For some cards, you are unable to transfer a debt that will be more than 80% or more of your credit limit. You will also likely need to make the balance transfer at the time of application in order to take advantage of the promotional rate. Make sure you're familiar with all restrictions so you don't get any nasty surprises when you apply.

How do I compare debt consolidation personal loans?

When you compare personal loans for debt consolidation, be sure to check the following:

  • Interest rate. First, check whether the rate is variable or fixed. Variable personal loan rates may change over your loan term while fixed rates remain, well, fixed. Once you know whether it's fixed or variable, compare that rate with other fixed or variable rate loans and ensure it is competitive. You should also compare the personal loan comparison rate as this includes the rate and fees.
  • Fees. What fees will you be charged? Check for upfront fees such as establishment or application fees as well as ongoing fees such as annual or monthly fees. These fees will add to your debt.
  • Loan limits. How much are you able to borrow and will it be sufficient to consolidate your debt?
  • Loan purpose. Not all lenders allow you to use their personal loans for debt consolidation, even if they are unsecured. Make sure you're able to use it for what you need before you apply.
  • Loan terms Check the terms of the loan and use a personal loan calculator to see if the repayments will suit your budget.
  • Repayment flexibility. Are you able to make extra repayments throughout the loan or pay off the loan early without penalty? Look for early repayment penalties or restrictions.

Christmas debt consolidation tips

  • Work out a budget beforehand. Know how much you can afford to repay before you consolidate your debt. This is especially true if you're applying for a balance transfer credit card – it can be easy to slip into making the minimum repayments and then not repaying your debt in full when the promotional period ends.
  • Check eligibility, restrictions and limits. First, find out if you meet the minimum eligibility criteria for the product you want. If you're unsure about anything, check with the provider directly. Then you should see how much you're able to transfer, and using a personal loan calculator or credit card calculator, see how much the repayments will be and if you'll be able to afford them. The lender will not approve you for a loan you can't afford so don't apply for it. Then, check the restrictions on the product – they may have a limit on how much you can balance transfer, for example.
  • Have a backup plan. What will you do if you aren't approved, or if you aren't approved for the full amount you need? Multiple credit applications in a short space of time can affect your credit file so it's important to have a plan in mind.

Balance transfer credit cards vs debt consolidation personal loans: Compare the benefits and drawbacks

What's good?What's not-so-good?
Balance transfer credit cards
  • As low as 0% p.a. interest on your debt
  • Can consolidate multiple cards and save on interest and fees
  • Some cards come with rewards and other perks which may make it worth keeping
  • You may not be approved for the full amount of credit you need to pay off your debt
  • The rate only applies for a limited time
  • If you don't pay off your entire balance within the promotional period, a revert rate will apply and it is usually 20–22% p.a.
Debt consolidation personal loans
  • Allows you to pay off your entire debt within the loan term
  • You can consolidate multiple debts, including credit cards and personal loans
  • You can also use the loan for additional purposes if you apply for a sufficient amount
  • Interest rates are higher than with balance transfer credit cards
  • Depending on the loan you apply for, you may not be able to make additional repayments or pay off the loan early without penalty
  • You will have your debt longer – debt consolidation personal loans come with minimum loan terms of one year

How do I know if I'm eligible?

It's important to check whether you are eligible for either the loan or the credit card before you apply. On every finder.com.au review page you will find a list of minimum eligibility criteria that you can check you meet before clicking "Go to Site" and submitting your application. Apart from this, you should also check the amount you're applying for will be manageable on your current budget.

Eligibility criteria will include:

  • Age. You will need to be over the age of 18 and may need to be over 21 to apply for some products.
  • Residency. Generally, you will need to be a citizen or permanent resident of Australia. However, you can find both personal loans and credit cards available for temporary residents.
  • Income. Some card providers and lenders have a minimum income which you need to earn in order to apply for the card.
  • Employment. There may be restrictions as to how you need to be employed. For example, you may need to be in full-time employment to be eligible.
  • Credit history. You generally won't be eligible for a balance transfer credit card with a bad credit history, but you may be able to find specialised bad credit debt consolidation loans.

Have more questions about consolidating your Christmas debt?

I applied for a balance transfer but wasn't approved for the credit limit I needed. What do I do?

You can either take out the balance transfer card and move as much debt as you can onto it, or decline to open the card. If you choose to open the card you will need to work out a budget to see how much you can pay off in the promotional period while still maintaining your other credit card/s. After you've paid that off you can choose to try for another balance transfer or just keep paying down your remaining debt.

Not taking out the card is also an option, but remember when you apply for another balance transfer the card provider will be able to see your recent application and it might affect your chances of approval.

What do I do if I have bad credit?

You won't be eligible for a balance transfer credit card, but you may have some personal loan options. Some lenders offer risk-based pricing based on your credit history, so while you may get a higher rate you may still be able to get a loan.

What do I do if I don't pay off the balance transfer within the promotional period?

First, work out how much debt you have left on the card and how long it will take you to pay off while you're being charged the revert rate. If it will be unmanageable or you will be in debt for an extended period of time, you may want to consider another balance transfer. Keep in mind that continually balance transferring your debt isn't an ideal strategy because every new credit application is listed on your credit file and affects your credit score. However, it depends on the current state of your credit file and how long it's been since you've last applied for credit.


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Personal Loan Offers

Important Information*
Logo for Harmoney Unsecured Personal Loan
Harmoney Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 25.69% p.a. based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 years terms.

Logo for ANZ Fixed Rate Personal Loan
ANZ Fixed Rate Personal Loan

You'll receive a fixed rate of 10.5% p.a.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants. Note: These rates are available until 2 February 2021. Credit, eligibility criteria and terms & conditions apply.

Logo for NAB Personal Loan Unsecured Fixed
NAB Personal Loan Unsecured Fixed

You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.

Logo for SocietyOne Unsecured Personal Loan
SocietyOne Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.

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