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Consolidate Your Debts

couple on car at beachWhat you need to know to pay off your debt (even if you have bad credit)

Debt consolidation is the process of rolling all your outstanding debts into one loan, with the ultimate goal of paying off your debts at a lower rate. Consolidating loans works for some people and doesn’t for others — it depends entirely on your financial situation.

People with bad credit can also consolidate debt to get back in control of their finances & pay back their debts. To find out if a debt consolidation loan is right for you, read our guide below.

Citi Personal Loan Plus

Citi Personal Loan Plus

from

11.99 % p.a.

variable rate

from

12.48 % p.a.

comparison rate

  • Loan amounts from $5,000
  • Offers a reusable credit facility
  • Repay over 5 years
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100% confidential application

Citi Personal Loan Plus

Apply for a Citi Personal Loan Plus and get competitive interest rate offer with a reusable credit facility.

  • Interest rate from: 11.99% p.a.
  • Comparison rate: 12.48% p.a.
  • Interest rate type: Variable
  • Application fee: $0
  • Minimum loan amount: $5,000
  • Maximum loan amount: $75,000
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Rates last updated July 28th, 2017
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Product Description
Citi Personal Loan Plus
From 11.99% (variable)
12.48%
$5,000
3 to 5 years
$0 ($199 fee waived)
Borrow up to $75,000. All approved applicants will receive the advertised variable rate of 11.99% p.a.
Latitude Personal Loan (Secured)
From 12.99% (fixed)
14.2%
$3,000
2 to 7 years
$250 (Loans under $4000 - $140)
Can be used for whatever purpose: renovating, buying a car, booking a holiday. Funds can be in your account in as little as 24 hours.
QT Mutual Bank Personal Loan
From 12.95% (variable)
13.54%
$3,000
5 years
$395 (establishment fee)
You can use this personal loan to buy just about anything: a new boat, home renovations, a holiday or even to consolidate existing debt. Only available to Queenslanders
bcu Unsecured Multipurpose Loan
From 8.94% (variable)
9.85%
$4,000
1 to 5 years
$200
A flexible unsecured or secured personal loan with a competitive rate.
Swoosh Finance
From 48% (variable)
66.04%
$2,100
1 to 2 years
$400
A secured loan you can apply for in 10 minutes that gives you up to 12 months to repay. Note: Max loan amount $4,600. Fees and charges included in repayment.

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Rates last updated July 28th, 2017
Fox Symes Debt Solutions
Struggling with multiple debts? A Fox Symes debt consolidation loan may be able to help you reduce what you’re paying in interest and fees.
Enquire now More
Citi Rewards Classic Credit Card

Citi Credit Card Offer

Pay no annual fee for the first year with the Citi Rewards Classic Credit Card which offers a low interest rate of 0% p.a. for 15 months on balance transfers and up to 55 interest free days on purchases.

  • $49 p.a. annual fee for the first year ($99 p.a. thereafter)
  • 20.99% p.a. on purchases
  • 0% p.a. for 15 months with 1.5% balance transfer fee on balance transfers
  • Cash Advance Rate of 21.74% p.a.
  • Up to 55 days interest free
  • Minimum Income Requirement of $25,000 p.a.

Credit Cards with Balance Transfers

Rates last updated July 28th, 2017
Name Product Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Product Description
Citi Qantas Signature Credit Card
0% p.a. for 6 months
20.99% p.a.
$199 p.a. annual fee for the first year ($395 p.a. thereafter)
Earn from 0.5 Qantas Points per $1 spent on selected purchases and get a 2 airport lounge visits per year.
Citi Rewards Signature Credit Card
0% p.a. for 6 months
20.99% p.a.
$199 p.a. annual fee for the first year ($395 p.a. thereafter)
Earn from 1 Point per $1 spent on selected purchases and receive a complimentary Priority Pass membership with two airport lounge visits per year.
Emirates Citi World Mastercard
0% p.a. for 9 months
20.99% p.a.
$149 p.a. annual fee for the first year ($299 p.a. thereafter)
Earn up to 1.5 Skywards Miles for every $1 spent and indulge in carefully curated local and global experiences.
Citi Prestige Card
0% p.a. for 6 months
20.99% p.a.
$700 p.a.
Earn from 1 Point per $1 spent on selected purchases and enjoy unlimited airport lounge access with a complimentary Priority Pass.
Virgin Australia Velocity Flyer Card - Exclusive Offer
0% p.a. for 18 months
20.74% p.a.
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Apply by 31 July 2017 to receive a long-term, no fee balance transfer and a $129 Virgin Australia Gift Voucher each year.
Virgin Australia Velocity High Flyer Card - 30k Bonus Points offer
1.9% p.a. for 15 months
20.74% p.a.
$144 p.a. annual fee for the first year ($289 p.a. thereafter)
Take off sooner with up to 1 Velocity Point per $1 spent and earn up to 30,000 bonus Velocity Points. Plus, complimentary travel insurance.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 6 months
0% p.a. for 12 months (reverts to 20.74% p.a.)
$129 p.a.
Save with 0% p.a. on purchases for 12 months. Plus, up to 0.66 Velocity Points per $1 spent.
Citi Rewards Platinum Credit Card
0% p.a. for 24 months with 1.5% balance transfer fee
20.99% p.a.
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Earn Reward Points per $1 spent as part of the Citi Rewards Program, plus receive complimentary international travel insurance.
Citi Rewards Classic Credit Card
0% p.a. for 15 months with 1.5% balance transfer fee
20.99% p.a.
$49 p.a. annual fee for the first year ($99 p.a. thereafter)
Receive 1 point per $1 spent on all eligible Domestic Spend (up to $5,000 per period) and membership to the Citibank Dining Program.

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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.

Do you have unsecured debts of $8,000 or greater?
Do you receive a regular income?
Have you been bankrupt in the last 10 years?
Are you a home owner?
Are you behind on payments?
Enter your details to speak to an expert from Fox Symes

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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


Guide to debt consolidationDISCLAIMER: This information is provided as is and does not take into account your current financial situation. You should always seek professional financial advice before applying for any form of finance.

"How do I consolidate my debts?"

If you have debts that you want to consolidate, there are a few simple steps you can take to get back in control of your finances.

  • Step 1 - Your debt and situation. What debt do you need to consolidate? Do you have bad credit? These will affect your options.
  • Step 2 - Compare your options. See what loan options you have available to you and compare the fees and rates.
  • Step 3 - Apply online. Make sure you're eligible and then submit your application online.

Questions you should ask before consolidating your debt

People turn to debt consolidation at various stages of debt. There are different ways of going about consolidating debt, meaning that you can turn to debt consolidation in a few scenarios and still make it work for you. So, if you're in debt, consider the following:

  • Are you finding it difficult to meet your monthly repayments?
    If so, you might find rolling your debts into one can reduce the amount you pay each month and make your debt easier to manage.
  • Do you have multiple debts that you are trying to manage?
    Multiple debts mean multiple sets of interest and fees, and can make it hard to stay on top of. Debt consolidation can offer you an easy way to keep track of your debt and pay it down.
  • Is your credit file free from negative listings and defaults?
    If you have bad credit history, your loan options may be limited. You'll need to keep this in mind when comparing what's available to you.
  • Do you have debts with high interest rates?
    You may be able to consolidate to a loan with a lower rate.
  • Do you have equity in your home?
    You might be able to use this equity to pay down your debts.

"The best time to consolidate your debt is basically whenever you are ready,"

says Chrish Samuel, Senior Finance Consultant at Finstar Financial. "There is no set limit that you must surpass before consolidating your debt; it’s really a matter of the sooner the better. However, when considering whether or not to consolidate your debts you should ask yourself the following questions: Am I finding it difficult to meet my monthly obligations? Are the interest rates so high that I am unable to keep up with reducing the principal amount of the loan? Do I currently have multiple unsecured lines of debt (like credit and store cards)? If you answer yes to any of the above questions, then consolidating your debt may be an appropriate course of action."

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Find the loan you are interested in via the type or bank, or read our guides to decide.

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Compare the debt consolidation offers that could be available to you to come to an informed decision.

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Ask a question and find out more about your debt solutions

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Can you afford the debt you're applying for?

If you're considering applying for a debt consolidation loan, you need to think about the effect it will have on your financial situation. Will it help you manage your repayments or force your debts to spiral out of control? Anyone thinking about applying for credit should take the following into account:

  • What is the actual purpose of the loan?
    Differentiating between needs and wants is crucial when applying for credit, because just ‘wanting’ something doesn’t mean you should borrow money to get it. Also, think carefully when a loan involves a friend or a family member where you have to act as a guarantor, because with such loans, you become liable in case of defaults or non-payment. If you’re applying for credit to pay utility bills, consider discussing financial hardship options with your provider first.
  • Is borrowing your best bet?
    Debt may not be the best option for you in various situations. How about you consider saving and then buying an item outright, or paying it off gradually by putting it on layby? Individuals on low incomes can even qualify for low interest or no interest loans. The No Interest Loans Scheme (NILS), for example, offers up to $1,200 to individuals on low incomes, provided they have Centrelink health care or pension cards, or qualify for one.
  • What is your credit report like?
    Credit providers go through your credit file to assess risk and establish your capacity to repay credit. You can get a copy of your credit file for free, and once you do you should go through it to check for mistakes.
  • Can you make the repayments?
    Before applying for a loan, establish if making repayments will be manageable on your existing budget. If you think you can reduce your monthly expenditure, try doing it for a couple of months before you actually seek credit. Don’t forget to take into account interest rate increases as well as unexpected expenses or changes in your circumstances.
  • Is this a good time to get into more debt?
    If you don’t have a stable job, if you’re planning to take time off to study or to start a family, or if you have health problems that might lead to reduced income, applying for credit might not be such a good idea.

Chrish Samuel, Senior Finance Consultant

Title

If you have the luxury of being able to consolidate the debt into a home loan whilst incurring minimal additional costs to your existing monthly repayment this could be a good thing. However, it is important to remember not to continue the cycle of debt again. Whilst consolidation of debts into a home loan/ personal loan is seen as a quick fix, this is often not the case. The hardest aspect of minimising the debt in your life using debt consolidation is changing one’s mindset to move away from the financial hardship of yesteryear.

I am a firm supporter of cutting up credit cards and living life on a cash-only diet. Just like buying more groceries when shopping whilst hungry, statistics have shown that consumers tend to spend more on their credit cards than if they had cash. By shopping with cash rather than card, this will help to reduce impulse buying which is one of the largest reasons for consumer debt in Australia.

Whilst debt has a serious negative connotation associated with it we should not fear it. Structured/good debt is a tool that should be utilised by society to increase one’s wealth. However, to ensure that you are doing this correctly and in accordance to your specific financial needs it’s a good idea to speak to an adviser who can help by assessing your current financial position to ensure that you benefit from debt consolidation in both the short and long term.

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How does debt consolidation work?

The world runs on credit, and as you go through life you might find yourself taking on more and more loans. It might start with a credit card or a car loan or you might even take out a small personal loan for a holiday. Eventually you may apply for a home loan to purchase your first home, and soon you're juggling repayments on a few different credit accounts. When you calculate the interest and fees on all the separate accounts you might find that you are paying a large amount, but there is a way to reduce it.

Debt consolidation involves you taking out another loan that combines your credit accounts into one and helps to reduce the separate fees and interest you are paying. The debt consolidation loan you take out may be borrowing on top of a loan you already hold, such as your mortgage. It's important to determine whether you can afford the repayments on a debt consolidation loan before you apply and if taking one out will put you in a better financial position rather than a worse one.

Options you have to reduce your debt

Depending on your financial situation, there are a few options available to you when it comes to debt consolidation. Take a look at the options below and see which one you would be eligible for, and which one would work best for your situation.

  • Personal loan

A debt consolidation personal loan is an unsecured line of credit that lets you bring all your debts into one. The aim with this type of debt consolidation option is to reduce the amount you pay in interest and fees, so ensure that the amount you're being charged on the new loan is lower than what you're currently paying.

  • Good and bad credit borrowers. There are lenders who offer loans to borrowers with adverse credit histories, as well as loan options for those reserved with good credit histories. Check which loans are available to you.
  • Loan terms. Depending on the loan you opt for, loan terms can be as short as 16 days or as long as seven years. Find a loan option that best meets your needs and gives you ample time to pay back your debt. You might also be able to take advantage of flexible repayment features such as being able to make additional repayments or having access to a redraw facility.
  • What debts can you consolidate? It's really up to you — bring over debts from other personal loans, credit, store or charge cards or other lines of credit. The lender might have guidelines as to what debts you can bring over, so check what is specified in your loan.
  • Home equity loan

If you have equity in your home you can choose to refinance your mortgage to repay some of your debts. This is a slightly more complicated option as it involves a larger asset — your home — so to ensure the refinancing option you pick will help you to save in the long run.

  • Good and bad credit borrowers. Again, borrowers with both good and bad credit history can apply for a refinancing consolidation loan. Obviously, you need to have an existing loan to apply.
  • What you need to consider before you apply. Refinancing your home loan can be a costly exercise, so consider all the applicable fees and charges before you apply. You also need to keep in mind that your current debts will take a lot longer to pay off — standard home loans can last 25 to 30 years, so think about the interest you'd pay over that time.
  • What debts can you consolidate? Bring across debt from your credit cards, personal loans, car loans and personal overdrafts.
Rates last updated July 28th, 2017
$
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
NAB Portfolio Facility (LOC) - $250,000 to $499,999
A line of credit home loan with no application fee.
5.86% $0 $550 p.a. 90% Go to site More info
State Custodians Low Rate LOC - LVR 80% to 90% (Owner Occupier)
Borrow up to 90% of property's value and pay no application fee.
3.79% 3.82% $0 $0 p.a. 90% Go to site More info
NAB Portfolio Facility (LOC) - $500,000 to $999,999
Pay no application fee and enjoy a low interest rate.
5.76% $0 $550 p.a. 90% Go to site More info
IMB Platinum Package - Equity Line Advantage (Owner Occupier)
Package with $0 application fee and you can borrow up to 90% LVR.
4.99% $0 $0 p.a. 90% Go to site More info
NAB Portfolio Facility (LOC) - $1,000,000 and above
Borrow against your equity for investments and other purposes and get a competitive interest rate.
5.66% $0 $550 p.a. 90% Go to site More info
Bank Australia Line of Credit Home Loan - Variable Rate
An 'all-in-one' account for your home loan, access account and overdraft
4.92% $595 $12.50 monthly ($150 p.a.) 80% Enquire now More info
ANZ Equity Manager - Variable
A low interest rate home loan with a low ongoing fee.
6.37% $600 $150 p.a. 90% Enquire now More info
4.47% $0 $350 p.a. 80% Enquire now More info
4.57% $0 $349 p.a. 90% Enquire now More info
Aussie Select Line of Credit - $500k+ (LVR <= 80%) (Owner Occupier)
A low rate line of credit with low ongoing fee.
3.89% $0 $198 p.a. 80% Enquire now More info
ANZ Equity Manager - Breakfree Home Loan Package $700,000 plus
A low interest rate home loan with a low ongoing fee.
5.67% $600 $150 p.a. 90% Enquire now More info
Aussie Select Line of Credit - <$500k (LVR <= 80%) (Investor)
A low rate line of credit with low ongoing fee.
4.39% $500 $198 p.a. 80% Enquire now More info
5.64% $0 $395 p.a. 90% Enquire now More info
Westpac Equity Access
Access a line of credit home loan through Westpac.
6.42% $600 $10 monthly ($120 p.a.) 95% Enquire now More info
Bankwest Complete Home Loan Package Equity - $500k to $750k
All the benefits of Bankwest's Complete Package Home Loan with a line of credit.
4.84% $0 $395 p.a. 80% More info
Heritage Bank Living Equity Line of Credit - Owner Occupier (New Customers Only)
A competitive line of credit loan from Heritage Bank.
5.51% $600 $10 monthly ($120 p.a.) 85% Enquire now More info
Suncorp Home Package Plus Access Equity - > $150K & $499,999 (LVR 80% to 90%)
Enjoy a discounted rate on your equity loan and fee discounts.
5.27% $0 $375 p.a. 90% Enquire now More info
Commonwealth Bank Viridian Line of Credit - Variable
A flexible line of credit with low minimum loan amount.
6.38% $600 $12 monthly ($144 p.a.) 80% Enquire now More info
St.George Portfolio Home Loan With Advantage Package - $150K to $249k (Special Discount)
Low rate line of credit loan with flexible repayment options.
5.84% $0 $395 p.a. 90% Enquire now More info
AMP Professional Package Line of Credit - $250,000 to $749,999 (Owner Occupier, IO)
Use the equity in your home to make your next investment move for your future.
4.67% $0 $349 p.a. 90% Enquire now More info
Suncorp Access Equity Line of Credit
Consolidate your debt and build wealth with this line of credit loan.
6.02% $600 $10 monthly ($120 p.a.) 90% Enquire now More info
Homeloans Ultra Line of Credit
A line of credit home loan with no application fee aor ongoing fee and borrow up to 90% LVR with redraw facility.
4.54% 4.58% $0 $0 p.a. 90% Enquire now More info
  • Credit card balance transfer

If you have more than one credit card with an outstanding balance, you can consider a balance transfer to pay down your debt. By applying for a balance transfer credit card you can pay a low or no interest rate on your transferred balance for a specified amount of time.

  • Good credit borrowers. If you have negative credit history you will not be eligible for a balance transfer credit card. Bad credit borrowers will need to consider one of the previous two options.
  • What debts can you consolidate? Most balance transfer credit cards only let you bring over debts from other credit store and charge cards. There's also usually a limit of how many cards you can consolidate and up to what level of your credit limit you can take up with your debt. Some card providers, however, will let you bring over debt from personal loans, overdrafts and other lines of personal credit.
  • Should you balance transfer? Look at how much debt you currently have and think about the likelihood of you being approved for a high enough credit limit to transfer all of it to your new card. Also, would you be able to pay off the debt before the balance transfer promotional period was over? If not, the revert rate, which is usually the cash advance rate, will apply.

Rates last updated July 28th, 2017
Name Product Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Product Description
Virgin Australia Velocity Flyer Card - Exclusive Offer
0% p.a. for 18 months
20.74% p.a.
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Apply by 31 July 2017 to receive a long-term, no fee balance transfer and a $129 Virgin Australia Gift Voucher each year.
HSBC Platinum Credit Card
0% p.a. for 22 months with 2% balance transfer fee
19.99% p.a.
$99 p.a.
Earn reward points with high credit limits, prestige services including a personal concierge service.
Bank of Melbourne Vertigo Visa Credit Card
0% p.a. for 14 months
13.24% p.a.
$0 p.a. annual fee for the first year ($55 p.a. thereafter)
Consolidate your debt with a long-term 0% p.a. balance transfer offer from Bank of Melbourne, combined with $55 annual fee in the first year.
American Express Essential®  Credit Card
0% p.a. for 12 months with 1% balance transfer fee
14.99% p.a.
$0 p.a.
Receive a $50 credit when you apply online, are approved and spend $750 on your new card within the first 3 months of card membership.
Virgin Australia Velocity High Flyer Card - 30k Bonus Points offer
1.9% p.a. for 15 months
20.74% p.a.
$144 p.a. annual fee for the first year ($289 p.a. thereafter)
Take off sooner with up to 1 Velocity Point per $1 spent and earn up to 30,000 bonus Velocity Points. Plus, complimentary travel insurance.
HSBC Platinum Qantas Credit Card
19.99% p.a.
$199 p.a.
Receive 60,000 bonus Qantas Points when you meet the spend requirement and earn up to 1 Qantas Point per $1 spent.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 6 months
0% p.a. for 12 months (reverts to 20.74% p.a.)
$129 p.a.
Save with 0% p.a. on purchases for 12 months. Plus, up to 0.66 Velocity Points per $1 spent.
NAB Low Fee Card
0% p.a. for 16 months with 2% balance transfer fee
19.74% p.a.
$30 p.a.
Receive complimentary purchase protection insurance, special offers from Visa Entertainment and up to 44 days interest-free on purchases.
ANZ Platinum Credit Card - Exclusive Offer
0% p.a. for 12 months
0% p.a. for 3 months (reverts to 19.74% p.a.)
$0 p.a. annual fee for the first year ($87 p.a. thereafter)
Exclusive to finder, receive 0% p.a. interest on purchases for 3 months and 0% p.a. on balance transfers for 12 months.
Bankwest Qantas World Mastercard
2.99% p.a. for 9 months
20.49% p.a.
$270 p.a.
Earn uncapped Qantas Points per $1 spent on eligible purchases. Also enjoy no foreign transaction fees on online and overseas spend.
Westpac Low Rate Card - Online Only Balance Transfer Offer
0% p.a. for 24 months with 2% balance transfer fee
13.49% p.a.
$59 p.a.
Take advantage of 0% p.a. for 24 months on balance transfers with a 2% BT fee. Plus, the convenience of the Westpac mobile banking app.
St.George Vertigo Visa
0% p.a. for 14 months
13.24% p.a.
$0 p.a. annual fee for the first year ($55 p.a. thereafter)
Receive up to 55 days interest-free on purchases and the ability to make contactless payments with Visa payWave technology.
St.George Vertigo Platinum
0% p.a. for 20 months
12.74% p.a.
$99 p.a.
Offers complimentary travel insurance, complimentary purchase insurance and access to a 24/7 personal concierge service.
BankSA Vertigo Visa
0% p.a. for 18 months
13.24% p.a.
$0 p.a. annual fee for the first year ($55 p.a. thereafter)
Get up to 55 days interest-free on purchases and be protected by 24/7 Falcon® Fraud service.
NAB Velocity Rewards Premium Card
0% p.a. for 6 months
19.99% p.a.
$150 p.a.
Offers up to 1 Velocity point per $1 on purchases, combined with complimentary insurance covers and a concierge service.
Citi Rewards Platinum Credit Card
0% p.a. for 24 months with 1.5% balance transfer fee
20.99% p.a.
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Consolidate your debt with a low balance transfer offer that will also include your personal loan.
Citi Simplicity Card
0% p.a. for 6 months
19.99% p.a.
$0 p.a.
Earn 10% cashback on eligible purchases (capped at $50 per month) for the first 4 months from card approval.
Citi Rewards Classic Credit Card
0% p.a. for 15 months with 1.5% balance transfer fee
20.99% p.a.
$49 p.a. annual fee for the first year ($99 p.a. thereafter)
Features a complimentary rewards program along with no point expiry and a balance transfer offer.
ANZ First Visa Credit Card
0% p.a. for 16 months with 2% balance transfer fee
19.74% p.a.
$30 p.a.
Get up to 44 interest-free days on purchases and take advantage of a low minimum credit limit.
ANZ Low Rate
0% p.a. for 16 months with 2% balance transfer fee
12.49% p.a.
$58 p.a.
Receive up to 55 days interest-free on purchases, up to 3 additional cardholders at no cost and Mastercard PayPass.
NAB Qantas Rewards Card
0% p.a. for 6 months
19.99% p.a.
$95 p.a.
A dual Amex and Visa card that allows you to earn up to 0.75 Qantas Points per $1 spent, plus complimentary purchase protection insurance.
American Express Explorer® Credit Card
0% p.a. for 12 months with 1% balance transfer fee
20.74% p.a.
$395 p.a.
Receive a $400 Travel Credit every year and up to two entries per year to the American Express Lounge at Sydney International Airport.
NAB Qantas Rewards Premium Card
0% p.a. for 6 months
19.99% p.a.
$250 p.a.
A dual Amex and Visa card that earns up to 1 Qantas Point per $1 spent on eligible purchases, plus a 24/7 personal concierge.
NAB flybuys Rewards Card
0% p.a. for 6 months
19.99% p.a.
$95 p.a.
Earn 1 flybuys point per $1 spent on everyday purchases and receive 7 complimentary insurance covers.
NAB Velocity Rewards Card
0% p.a. for 6 months
19.99% p.a.
$95 p.a.
This dual Amex and Visa card offers up to 0.75 Velocity Points per $1 spent on eligible purchases and special Visa Entertainment offers.
NAB Low Rate Credit Card
0% p.a. for 16 months with 2% balance transfer fee
13.99% p.a.
$59 p.a.
Receive up to 55 days interest-free on purchases, special offers from Visa Entertainment and Tap and Pay capabilities.
NAB Rewards Classic Card
0% p.a. for 6 months
19.99% p.a.
$95 p.a.
Earn 0.75 NAB Rewards Points per $1 spent and receive complimentary purchase protection insurance.
American Express Velocity Escape Card
0% p.a. for 12 months with 1% balance transfer fee
20.74% p.a.
$0 p.a.
Earn uncapped Velocity points on purchases and redeem for a range of rewards including flights, accommodation, car hire and gift cards.
Woolworths Everyday Platinum Credit Card
0% p.a. for 14 months
19.99% p.a.
$0 p.a. annual fee for the first year ($49 p.a. thereafter)
Receive a $100 eGift Card when you apply by 30 September 2017 and make an eligible purchase by 31 October 2017.

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Refinancing through sickness

sickness-refinanceJohn was in his mid-thirties working full time in an office. He was receiving a salary which allowed him to easily meet his day to day expenses, which included his mortgage repayments, his car loans and the minimum repayments on his credit cards.

Unfortunately John was struck by a sudden illness which forced him to take six months off from work for treatment and recovery. During these six months he had no income coming in, and John and his wife Claire were forced to pay for their living expenses using their credit cards. John also couldn't meet his loan obligations and defaulted on his mortgage and both his car loans.

As a result John's finances looked like this:

  • Mortgage: $202,000 with a $1,500 monthly repayment.
  • Credit card balance: $22,000 with a $660 monthly repayment. This card was in default, but John had a debt agreement in place to pay just $10,000 of the owed amount, to close the account.
  • First car loan: $13,000 with a $390 monthly repayment. John was three months behind on his payments to this loan.
  • Second car loan: $29,000 with a $900 monthly repayment. This loan was also three months in arrears.

What did John do?

At this point the bank was ready to foreclose on John's home and both his car loans leaving his with nothing, and nowhere to live. The credit card company was willing to take just $10,000 to settle the debt, and this meant John's total loan debt was $254,000 with current monthly repayments of $3,500. His house was valued at $330,000.

Once John had recovered his health he realised that he was in too deep to recover from his financial situation. He was too far behind on his car loans, and coupled with interest charges and penalties the obligations were just too much. John applied for loans with a number of lenders but was refused, so was still looking at losing everything.

Instead, John worked with a debt consolidation company to refinance all of his debts into one personal loan facility. The loan would total $254,000 and his monthly repayment would be just $2,438, reducing the family's outgoing repayments by almost $1,000 a month. At the same time, the creditors were not pursuing their money and the pressure eased. A debt consolidation loan saved John and Claire's home, cars and lifestyle, and he has learnt a valuable lesson about living from paycheck to paycheck — they're no longer worried about not having a banner year, no matter what might come to pass.

The good and the bad of consolidating debt

The benefits

  • Reduce the amount you pay in the long term. When you have several separate credit accounts that you're paying interest and fees for, the costs for these accounts can quickly start to accumulate. By rolling your debts into one account you eliminate the separate fees you're paying and are also likely to reduce the amount you're paying in interest. Over the long term, the savings can add up exponentially.
  • Better manage your repayments and credit accounts. Not only does having separate credit accounts cost you more, but having several different repayments is difficult to manage. A debt consolidation loan gives you one lender to deal with, one set of fees to keep in mind and one interest rate to remember.
  • Stop the phone calls from your creditors. Are you worried every time you hear the phone ring? You can stop your creditors hassling you by getting your debt under control with consolidation.
  • Avoid bankruptcy or serious bad credit listings on your file. If your debt is quickly spiralling out of control, a consolidation loan gives you a clear set path to paying it off. You might be able to avoid bankruptcy and you can avoid defaulting on your current debt by taking control.

What to be aware of

  • Debt consolidation might not be the best way. Taking out a debt consolidation loan should only be done when you've decided it's the best option for you. Will you save money on interest and fees when you consolidate? Will this loan help you get in control of your debts? Or will this loan end up costing you more? Be sure to check out all the fees and charges before you apply for any loan.
  • Disreputable lenders. Some lenders prey on bad credit borrowers and charge exceptionally high fees and rates for debt consolidation loans. Compare your loan options to other similar ones that are available to ensure what you're being charged is competitive.
  • High fees and rates charged for bad credit borrowers. Generally, loans available to bad credit borrowers carry higher rates and fees. Because of this, bad credit borrowers need to be especially wary when taking out one of these loans. Ensure that a debt consolidation loan is the best option for you before taking one on.
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Debt collectors: What you need to know

Your rights

Even though you have bad debts, you also still have rights. There are laws that control what debt collectors can and cannot do.

  • They cannot excessively harass, threaten, or bully you and collectors are supposed to only contact you only during certain hours of the day. There are strict rules governing face to face encounters as well. Keep a log of the dates and times you are contacted along with any other specifics. This will come in handy if you end up having to file a complaint, which can be done by contacting a consumer protection agency such as the Australian Competition and Consumer Commission (ACCC).
  • Check your bill records if collectors are calling you. Ask for a detailed statement of what they say you owe. If the debt involves a loan, ask for a copy of the paperwork. A collector must always identify himself and state the reason he is contacting you. He should be prepared to provide you with account information, and should offer a repayment or settlement plan.
  • Figure out what you must spend to get by, such as food, shelter, car, utilities, etc. It is good practice to set up an appointment with a non-profit help debt counsellor before making any promises or commitments to a collector.
  • Certain credit brokers and credit providers in Australia operate illegally without licenses, so make sure you’re dealing with a licensed individual or organisation. To check, you can go through ASIC Connect's Professional Registers or call ASIC's infoline.

What happens if a provider rejects my application?

In the event that a provider rejects your application for credit, bear in mind that not all is lost. Before you apply for credit there are a few things you can do to improve your chances of being approved. For example, you can start by going through your credit file, and then work on reducing debt by working on a budget.

Remember that there’s no guarantees when it comes to applying for loans, so it is best that you assess your financial situation and take suitable remedial measures before applying. You can strengthen your application by asking a relative or a friend to be a guarantor, but this can be risky for the individual in question. You can also, as mentioned previously, apply for a low interest or no interest loan if you qualify.

The bottom line remains that you should play smart when it comes to debt, and not end up with more than you can repay, because the downhill spiral is anything but pleasant.

If you are rejected

If you are rejected, then you should consider getting your finances under control. If you are still in need of a loan, you can always compare a range of loans that have no credit check

The questions you've asked us about debt consolidation

I want to apply for a debt consolidation loan. What are the most important things I need to consider?

As the reason you're opting for this loan is to get in control of your debt, the most important considerations are all to do with how much the loan will cost you. What is the rate of interest you will be charged? What fees do you have to pay at the onset of the loan and are there any ongoing fees? Check every single cost that is associated with the loan and ensure it is, first of all, competitive, and secondly that you will be saving money when you consolidate.

My current bank offers debt consolidation loans. Should I just apply with them?

Applying with your current bank has some advantages, but you should still compare the options available to you before you apply. If you have a few negative listings on your credit file and have a strong past relationship with your bank, you may have a better chance of being approved with them than with another lender. This is, of course, if your account has been kept in good standing. As mentioned, it still helps to compare the options you may be eligible for so you're aware of the debt consolidation possibilities in the market.

Should I consolidate my debt into my home loan to save having to take out another loan?

As we've outlined above, if you have equity in your home you can consider adding your debt to your home loan by refinancing. There are a few considerations before doing this. First off, while the interest rate might be lower, remember that the debt will likely be spread out over a much longer period as home loans are for longer terms than standard personal loans. The costs of refinancing should also factor into your decision. By doing some simple calculations when comparing your options you can find out which one will be the most financially viable. You should think about whether this type of consolidation will be the best way for you to manage your debt.

Do I need to change my budget and spending when I consolidate my debt?

If you are taking out a traditional debt consolidation loan then you are not required to alter your budget, although this can help you get out of debt sooner. A debt consolidation loan can see a reduction in the amount you pay in interest, which in turn reduces your monthly repayments. If you have no fees for making extra repayments, you could put the money you save towards your loan to help pay down your debt more quickly. You might also want to review your current budget and see if there's any ongoing expenditure you can cut back on so you can put more towards your loan. This being said, if you choose to enter a debt agreement there may be budget and spending restrictions depending on the nature of your agreement.

I have bad credit — what are my debt consolidation options?

Many people looking to consolidate their debt are also in the bad credit boat. While your options are more limited, it's important to note that there is still a range of options available to you. Depending on the level of debt you're in and how you think you'll manage a loan and repayments, a debt consolidation loan might be one to consider. There are lenders who specialise in bad credit debt consolidation loans. You can also look at consolidating the debt into your home loan if you have equity in your home, and again, there are lenders who will approve you if you have adverse credit history. If your level of debt is beyond the point of being able to be managed with a loan, you might want to consider a debt agreement. As outlined above, a debt agreement is an act of bankruptcy and should only be considered as a last resort.

What's the different between a debt consolidation loan and a debt agreement?

A debt consolidation loan is a type of personal loan that allows you to combine your current debts, such as loans and credit cards, into one. These loans can help reduce the amount you're paying in interest and fees and also make your debt easier to manage with one simple repayment. A debt agreement, on the other hand, is a binding agreement that is an actual act of bankruptcy. It will be listed on your credit file and affect your ability to access credit later on. Debt agreements are a serious thing to enter into and the decision shouldn't be taken lightly. They are usually entered into when you find your debt unmanageable but don't want to enter into bankruptcy — you will agree to pay your debtors a certain amount of money that you can afford.

I am anxious about my debt and don't know what to do. Who can I talk to?

Debt anxiety is a common concern, especially if you're finding your debt overwhelming or unmanageable. If you're unsure whether a debt consolidation loan is right for you, or you want some advice on your personal situation, you can get in contact with a free financial counsellor. There are free credit and debt services available in every state and they can help you decide your best course of action.

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41 Responses

  1. Default Gravatar
    March 9, 2017

    recently discharged bankrupt 2 months ago.have 3 cash advances money3 total 520 p/week need a car and consolidate debt, 7000 owing on loans need about 8000 for car earning 1300 p/w permanent employment.

    • Staff
      MayMarch 11, 2017Staff

      Hi Glenn,

      Thanks for your question.

      On this page, you would find the list of lenders who might consider you for a loan. Please review the criteria, details of the loan product and contact the lender directly to discuss your loan options and eligibility.

      Cheers,
      May

    • Default Gravatar
      rickkyJuly 11, 2017

      Hi Glenn, what is in page link?

    • Staff
      JonathanJuly 13, 2017Staff

      Hello Rickky!

      Thanks for your comment! :)

      It is the list of lenders who can offer loans for bankrupts.

      Hope this clarifies.

      Cheers,
      Jonathan

  2. Default Gravatar
    harriettaOctober 21, 2016

    Hi how do i get help to roll all my bills into one det iv applied with two other people who cold not help me out if you can please help thank you

    • Staff
      ElizabethOctober 24, 2016Staff

      Hi Henrietta,

      Your debt consolidation loan options are listed on the page above, but you may not have been approved because you did not meet the lender’s eligibility criteria or that you asked for a loan amount that the lender determined you could not afford. Now you have two recent credit enquiries on your file it will affect your chances of being approved. You may want to consider waiting a few months to apply again, or call the lender directly to discuss your eligibility for the loan. Criteria is also listed on each finder review page.

      Hope this helps,

      Elizabeth

    • Staff
      MattOctober 21, 2016Staff

      Hi Harrietta,

      Thanks for your comment. finder.com.au is not a lender so we can’t consolidate your debts, rather provide general information on the process.

      Each company considers your debt consolidation needs differently, and will rely on a range of factors when considering your application.

      If you’d like to read our guide on personal loan rejection, you may find more information.

  3. Default Gravatar
    tinyikoNovember 28, 2015

    I am trying to apply for a house.they declined me and said is because of 3 account which I fine it very hard to pay it off but I made arrangement.I pay certain amount on each account but still they declaim my application. Please help me how to get approval I really want a house

    • Staff
      BelindaNovember 30, 2015Staff

      Hi Tinyiko,

      Thanks for your enquiry, and sorry to hear about your situation.

      You might be interested to read our tips about how to get approved for a home loan with bad credit on this page and this page. You can also compare the range of specialist lenders that may be more likely to review your application given that you have some enquiries against your credit file.

      Keep in mind that while debt consolidation can make it easier to manage your finances, you may also have to pay a higher interest rate over the life of the loan.

      All the best,
      Belinda

  4. Default Gravatar
    CkMay 6, 2015

    Can i get a loan or credit card to pay off debt so i only have 1 loan or credit card repayment? I’m falling more and more behind in payments and just want the debt settled as quick as possible.

    Thank you!

    • Staff
      ElizabethMay 6, 2015Staff

      Hi CK,

      Thanks for your question.

      As you can see from this page there are a few debt consolidation loans you can consider. To check the eligibility and the details of the loan, click on the title of the loan in the table. You can also apply by clicking ‘Go to Site’ once you’ve found the loan you want to apply for. If you want to balance transfer your personal loan debt, you can compare your options on this page.

      I hope this has helped.

      Thanks,

      Elizabeth

  5. Default Gravatar
    April 4, 2015

    I would like to know the names of some lenders who help people with debt consolidation loans when they have bad credit. Thanks

    • Staff
      ElizabethApril 7, 2015Staff

      Hi Kirsty,

      Thanks for your question.

      You can compare lenders who offer bad credit debt consolidation loans on this page.

      I hope this will help.

      Thanks,

      Elizabeth

  6. Default Gravatar
    akkiMarch 22, 2015

    Hi there,
    Its really confusing me, but could anyone give me an advise?
    The thing is that my Mom has a credit balance of $20000 and so does my dad. Which adds up to $40,000.
    We don’t have a house, we are renting. But we want to take a home loan to offset it and then buy a house. But we are really lost. We don’t know any solution.

    • Staff
      ShirleyMarch 23, 2015Staff

      Hi Akki,

      Thanks for your question.

      If your parents are currently in debt, you’ll find that your options are somewhat limited as lenders aren’t prepared to take on this extra debt.

      If you find that none of these loans are suitable for your situation, there is always the option of speaking to a home loan broker. They’ll be able to help you further should need further help in narrowing down a suitable home loan option.

      Cheers,
      Shirley

  7. Default Gravatar
    KristyMarch 22, 2015

    Hi..
    We have two incomes coming through but can’t seem to keep up. We are overdue $1500 on our mortgage and have credit card and personal loan debt to the value of $21000. Are we able to apply for a debt consolidation loan whilst having an overdue amount on our mortgage. Thanks

    • Staff
      ShirleyMarch 23, 2015Staff

      Hi Kristy,

      Thanks for your question.

      You’ll find that your options are somewhat limited if you’re currently in arrears. However, there may be a number of lenders who can assist.

      You may want to speak to a bad credit lender your options. If you find that none of these loans are suitable for your situation, there is always the option of speaking to a home loan broker. They’ll be able to help you further should need further help in narrowing down a suitable home loan option.

      Cheers,
      Shirley

    • Default Gravatar
      March 23, 2015

      Can you also point me in the right direction about consolidating my two credit cards and personal loan without consolidating with my home loan. Can I still do this while having an overdue amount on my mortgage. Thanks

    • Staff
      ShirleyMarch 24, 2015Staff

      Hi Kristy,

      Thanks for your question.

      You’ll find that your options may be somewhat limited if you opt for a debt consolidation personal loan as you currently have an overdue payment on your mortgage.

      However, if you would like to discuss your eligibility or options, please get in touch with a lender featured above, or on this page.

      Cheers,
      Shirley

  8. Default Gravatar
    TanzelaFebruary 22, 2015

    Hi there
    Would love some help – I have 4 credit cards and a personal loan totalling $75k and want to consolidate this debt as an unsecured personal loan as I do not own property – the interest I and monthly payments are hard to manage.

    Please can you point me in the right direction of what I need to do and who can help me?

    Thank you
    Tanzela :-)

    • Staff
      ShirleyFebruary 23, 2015Staff

      Hi Tanzela,

      Thanks for your question.

      The process involves taking out a new loan to pay out your existing debts. You can compare a range of unsecured loans on this page.

      It may be a good idea to discuss your eligibility or options first with a few lenders. Once you’re happy to proceed with a certain loan or lender, they will be able to advise on the process.

      Cheers,
      Shirley

  9. Default Gravatar
    JohnFebruary 3, 2015

    I have several loans going at the moment but and finding it very hard to manage how can I put them all into one loan

    • Staff
      MarcFebruary 4, 2015Staff

      Hi John,
      thanks for the question.

      A debt consolidation loan simply rolls these into one loan, which may be secured to your home or not. I would recommend contacting a mortgage broker or a lender which you’re interested in to find out what the process would be for your situation, and how much you could stand to save using one.

      Cheers,
      Marc.

  10. Default Gravatar
    lynnDecember 27, 2014

    I transferred my home loan to a investment property to reduce my assets to try to get a pension will the tax department allow the transfer to reduce my assets if I did not use the loan on the investment .regards lynn

    • Staff
      ShirleyDecember 29, 2014Staff

      Hi Lynn,

      Thanks for your question.

      Please note that your main residence is generally exempt from the assets test for the age pension – your investment property will also be considered as an asset.

      It’s advisable that you speak to Centrelink directly or the ATO regarding the transfer of your property.

      Cheers,
      Shirley

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