Couple in debt

Consolidate Payday Loan Debt

Have multiple payday loans and want to roll them into one? Find out what’s involved in our guide to consolidating payday loans.

If you are currently repaying two or more payday loans and finding the repayments difficult to manage, you may be wondering what your payday loan consolidation options are.

Can you use a payday loan to consolidate debts?

When you apply for a payday loan, the lender needs to take certain steps to determine whether you can afford your repayments. To ensure it is meeting ASIC requirements, it needs to determine:

  • If you are a debtor under any other small amount credit contract (SACC)
  • If you are in default of payment of an amount under any SACCs
  • If you have been a debtor under two or more SACCs in the 90 days prior to applying
  • If you are using the loan to repay another SACC

If you answered “yes” to any of the above, the lender has to take further steps to ensure that you will be able to repay the loan you are applying for. It does this by asking further questions about your financial situation.

What does this mean for borrowers?

If you want to consolidate payday loans, using another payday loan may not be your best option. That is, unless you can afford it. Payday loans are usually taken out because the borrower has few other options due to bad credit, is currently on Centrelink payments or is receiving a low income.

If you fall into the third category, using a high-cost payday loan to consolidate outstanding high-cost payday loans may not be the solution for you. However, there are other options available.

Rates last updated September 26th, 2018
Fox Symes Debt Solutions
Fox Symes offers a range of debt consolidation options to help you if you're struggling with multiple debts.
Enquire now More

What options do you have for payday loan consolidation?

The following options can be considered if you want to consolidate your payday loan debts:

  • Unsecured personal loan.
    Rates vary for unsecured personal loans, especially for bad credit borrowers. To find out more you can read our guide on bad credit debt consolidation.
  • Credit card balance transfer.
    There are a few card providers who will let you transfer your personal loan debt to a credit card, letting you have up to 24 months of 0% p.a. interest payments. The one drawback is you’ll need good credit to be approved. You can read more about the requirements and compare your options on this page.

Helping hands

Not eligible for payday loan consolidation? Strategies to pay down your debt

If you apply for loans and have your application rejected, or read through the eligibility criteria and can’t find a loan you’re eligible for, it’s time to find a way to pay down the loans that you have.

  • Get in touch with your lenders. Every payday lender has a financial hardship department that may be able to offer you assistance or help you establish a repayment plan. The earlier you get in touch your lender the easier it will be for you.
  • Draw up a budget. Sit down and work out all of your incomings and outgoings and see where you can cut back. There is online budgeting software you can also consider using to help you work out your finances.
  • Call the free financial counselling hotline. If you’re really struggling, there is a free financial counselling service you can call for personal advice. You can get in touch with the service on 1800 007 007.

If you’re stuck in a payday loan debt cycle, there is an avenue you can take to get out of debt. Whether it’s consolidating your payday loans or finding a way to repay your outstanding debts, start by comparing the options and finding the right method for you.

Elizabeth Barry

Elizabeth is an editor for specialising in personal finance and fintech. She enjoys reading PDSs so you don’t have to.

Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy.

4 Responses

  1. Default Gravatar
    ChaemaineSeptember 25, 2017

    I have three payday loans and have lost my job the total amount of money owing is $800 can i put all these loan together and pay a argee low amount or a long term.

    • finder Customer Care
      HaroldSeptember 26, 2017Staff

      Hi Chaemaine,

      Thank you for your inquiry.

      AS per checking you are already in the correct page. You may need to further the information we provided on the above content for your guide and reference.

      I hope this information has helped.


  2. Default Gravatar
    September 3, 2017

    Hi, where can i find out the different options of loan available to a person with default, and bad credit history?

    • Default Gravatar
      MariaSeptember 3, 2017

      Hey Jess,

      Thank you for reaching out to us.

      You may want to check out these pages:
      Credit Options for Bad Credit Rating.
      5000 Loans with Bad Credit

      These lenders consider applications with bad credit.

      Before applying, please ensure that you meet the eligibility criteria and requirements and to read the details, as well as the relevant Product Disclosure Statements/ Terms and Conditions of the option before making a decision and consider whether the product is right for you.

      I hope this helps.


Ask a question
Go to site