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Debt consolidation loans

Reduce your interest rate, fees and monthly repayments with a debt consolidation loan.

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A debt consolidation loan is a new personal loan you get to combine your existing debts into one. This means you won't have to juggle multiple bills, manage different repayment terms or pay multiple interest rates or fees.
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Name Product Mobile details underline Interest Rate (p.a.) Comp. Rate (p.a.) Rate Type Application Fee Monthly Fee Monthly Repayment
OurMoneyMarket Personal Loan
Exclusive

Fixed, 1 - 7 Years, $2,001 - $75,000
Exclusive
OurMoneyMarket Personal Loan
1 - 7 Years, $2,001 - $75,000
6.05%
to 20.99%
6.68%
to 23.84%
Fixed
1.50% - 6%
min. $250
$0
You'll receive a fixed rate from 6.05% 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.
Finder Exclusive: Apply before 31st of August 2022 to secure a 0.20% p.a. discount for the full term of your loan.
Wisr Personal Loan Fixed, 3 - 7 Years, $5,000 - $64,000
Wisr Personal Loan
3 - 7 Years, $5,000 - $64,000
8.20%
to 18.45%
9.04%
to 18.87%
Fixed
$595
$0
You'll receive a fixed rate between 8.20% p.a. and 18.45% 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.
Harmoney Unsecured Personal Loan Fixed, 3 - 7 Years, $2,000 - $70,000
Harmoney Unsecured Personal Loan
3 - 7 Years, $2,000 - $70,000
5.35%
to 19.09%
6.14%
to 19.99%
Fixed
$275 - $575
$0
You'll receive a fixed rate between 5.35% p.a. and 19.09% p.a. based on your risk profile.
Apply for a loan up to $70,000 and repay your loan over 3, 5 or 7 years terms.
Latitude Variable Rate Personal Loan Variable, 2 - 7 Years, $5,000 - $70,000
Latitude Variable Rate Personal Loan
2 - 7 Years, $5,000 - $70,000
5.75%
to 25.99%
6.68%
to 29.20%
Variable
0% - 5%
$13
You'll receive a variable rate between 5.75% p.a. and 25.99% p.a. based on your risk profile
Apply for what you need from $5,000 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.
NOW Finance No Fee Unsecured Personal Loan Fixed, 18 Months - 7 Years, $5,000 - $50,000
NOW Finance No Fee Unsecured Personal Loan
18 Months - 7 Years, $5,000 - $50,000
6.75%
to 19.95%
6.75%
to 19.95%
Fixed
$0
$0
You'll receive a fixed rate between 6.75% p.a. and 19.95% p.a. based on your risk profile
Borrow from $5,000 to $7,999 with loan terms between 18 months and 3 years or borrow $8,000 to $50,000 with loan terms between 18 months and 7 years.

NAB Personal Loan Unsecured Fixed Fixed, 1 - 7 Years, $5,000 - $55,000
NAB Personal Loan Unsecured Fixed
1 - 7 Years, $5,000 - $55,000
6.99%
to 18.99%
7.91%
to 19.83%
Fixed
$150
$10
You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. (7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
NAB Personal Loan Unsecured Variable Rate Variable, 1 - 7 Years, $5,000 - $55,000
NAB Personal Loan Unsecured Variable Rate
1 - 7 Years, $5,000 - $55,000
6.99%
to 18.99%
7.91%
to 19.83%
Variable
$150
$10
You'll receive a variable rate between 6.99% p.a. and 18.99% p.a. (7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
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Compare up to 4 providers

How does a debt consolidation loan work?

A debt consolidation loan is a personal loan taken out with the purpose of using the money to pay off your other debts. You can do this to save money as, depending on your other debts, the interest rate of your new loan may be less than what you are currently being charged. This can be particularly true if you are paying fees for your other debts.

With just one debt payment to make, it will be easier for you to manage, track and make your repayments. It can give you greater control over your finances and a clearer timeline of when you will be debt-free.

While a debt consolidation loan may sound like a perfect solution, it can only help you if it costs less than all your other loans combined. Before taking one out, make sure to calculate if you will be paying less than you currently are.

In your calculations, you should factor in not only the overall cost of the loan but also the cost associated with exiting other loan contracts.

When to consider a personal loan for debt consolidation

Multiple fees

You have multiple debts with different fees

Money struggle

You're struggling to make repayments for the different debts you owe

Cheaper

You're looking for a cheaper way to pay off your debts

Confusing

You're confused or overwhelmed by your debt

How do I know if a debt consolidation loan is right for me?

  1. Work out how much you need to borrow to cover your debts.
  2. Research and compare personal loan products to find one that meets your needs. Personal loans are usually suited for debt amounts from $8,000 up to $50,000.
  3. Compare your total debt with the debt you'll be incurring with the new personal loan. Does it cost more to take out a new personal loan? If yes, do not proceed with taking out the loan. Talk to a financial adviser instead to work out strategies on how to manage your existing debt.
  4. If it's cheaper for you to take out a new personal loan and consolidate your debt, then you can apply for the personal loan. Make sure you check the eligibility criteria to see if you meet them.
  5. Use the funds to pay off your other debts, along with any fees or charges.
  6. Continue to make repayments on your personal loan until it has been repaid. There are other methods you can use to consolidate debt. This can include using a credit card. You can read our comprehensive guide to debt consolidation here.

You may not need a debt consolidation loan

Speak to your current lenders before taking out more debt. You may be able to negotiate cheaper rates or temporarily pause your payments.

Alternatives to personal loans for debt consolidation

Debt consolidation loans are not the only type of credit if you're struggling with debt. Based on your needs and the type of debt you have, you could also look into the following options. However, you should carefully consider the consequences of any of these options.

  • Balance transfer credit cards. If you have credit card debt across multiple accounts, you could consolidate it into a single card with a balance transfer. You will pay 0% interest for a specific period. Some card providers offer up to 24 months interest-free. However, if you fail to pay your debt during the interest-free period, you may end up paying higher interest after this period. Certain credit card providers also let you balance transfer personal loan debt to a credit card. You will need good credit to be approved for this. Keep in mind that every credit enquiry recorded on your credit file will affect your score.
  • Part 9 Debt Agreements. If you're having trouble paying your debt, you could enter into a debt agreement with a third-party organisation and your creditors. The agreement essentially freezes the interest you're paying and gives you a certain repayment period to pay back what you owe. Some creditors agree to accept less than the full balance for repaying your debt. However, this method shouldn't be entered into lightly. It is considered a form of bankruptcy and has long-term repercussions. It will be listed on your credit report for 5 years and can result in you having difficulty accessing credit in the future.
  • Credit counselling. You can enlist the services of a reputable credit counselling organisation to formulate a Debt Management Plan (DMP). Once you enrol in a DMP, the creditors will often reduce your interest rates. Afterwards, you will need to make 1 monthly payment to the counselling organisation. This organisation will handle the repayment to your creditors. This is an option if you can repay your debt within 5 years, but it isn't a decision that should be taken lightly. This should only be entered into if you're having difficulty repaying your debts on your own. There are also fees to consider, and depending on the solution offered, your credit score could take a hit.

Can I get a debt consolidation loan with bad credit?

There are a few ways you can consolidate your debt if you have bad credit:

  • Apply for an unsecured personal loan with a specialist lender. Some lenders offer large, unsecured personal loans for people with bad credit. Interest rates are higher than with standard personal loans, but you may still be able to reduce what you're currently paying.
  • Consider a Part 9 Debt Agreement. A debt agreement is a form of bankruptcy. It is an option for people with large debts they are unable to repay. The financier will negotiate with lenders on your behalf, and your debts won't accrue more interest. However, this agreement will be listed on your credit file for 5 years from the date you enter into it, which can have long-term consequences for your credit score.

Frequently asked questions about debt consolidation loans

More guides on Finder

  • Salt and Lime Debt Consolidation Loan

    Looking to consolidate your debt? Salt and Lime offers fee-free loans, same-day funding, and the ability to earn discounts on your interest over the life of the loan. Apply today.

  • Insolvency vs bankruptcy

    Want to understand the differences between personal insolvency and bankruptcy, and what both of these terms mean for your financial future? Find out here.

  • What are the consequences of bankruptcy?

    This guide will take you through the consequences of bankruptcy so you can decide if it's the right option for you.

  • Debt negotiation

    What is debt negotiation and how can it help you? Find out here.

  • What you’re doing wrong that keeps you in debt

    It doesn't matter how long you've been in debt or how much debt you have, there are strategies you can use to free yourself from any kind of debt trap. Use our guide to see how you can set yourself on the road to regaining financial control, and getting out of debt once and for all.

    Personal Loan Offers

    Important Information*
    Logo for Citi Personal Loan Plus
    Citi Personal Loan Plus

    You'll receive a variable rate of 8.9% p.a. with a comparison rate of 9.18% p.a. if you're approved.
    A credit limit up to $75,000 that you can continue to draw down over terms up to 5 years.

    Logo for OurMoneyMarket Personal Loan
    OurMoneyMarket Personal Loan

    You'll receive a fixed rate from 6.05% 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.

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

    You'll receive a guaranteed rate of 6.49% p.a. with a comparison rate of 7.41% p.a. if you're approved.
    Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.

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

    You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
    Borrow from $5,000 to $55,000, with 1 years to 7 years loan terms available. This loan comes with no fees for extra repayments and no early exit fees.

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    47 Responses

    1. Default Gravatar
      AllenFebruary 28, 2019

      I have loans that are overdue and outstanding balances to pay. I have the capacity to repay a loan up to $60,000. Where can I find a lender that will consolidate debts that are already overdue and next to being referred to CRAA?

      • Avatarfinder Customer Care
        JeniMarch 2, 2019Staff

        Hi Allen,

        Thank you for getting in touch with Finder.

        You may refer to the table above with a list of debt consolidation loans. Banks/lenders also check your capability to repay the loan so it would be helpful for you to contact your chosen bank/lender directly regarding your loan needs.

        You may also refer to our guide on bad credit debt consolidation.

        I hope this helps.

        Thank you and have a wonderful day!

        Cheers,
        Jeni

    2. Default Gravatar
      NicoleSeptember 7, 2018

      I have been approved for a consolidation loan but the interest is 18% over 5yrs. Short term it will be great to have 1 repayment but over the 5yrs the amount owing is crazy. Can I shop around for a better interest rate? Will it effect me in any way ie.credit checking?

      • Avatarfinder Customer Care
        JohnSeptember 7, 2018Staff

        Hi Nicole,

        Thank you for leaving a question.

        Yes, this is definitely an options available for you. You may still shop around for better deals but please note that each time you apply hits your credit score since an inquiry is being made. It is best to make sure that you want the deal before you apply for it. This ensures that you make as less inquiries on your credit score as possible. Hope this helps!

        Cheers,
        Reggie

    3. Default Gravatar
      NicoleSeptember 7, 2018

      I’ve been offered a debt consolidation loan but the interest is 17%. Do I have to keep applying to find a lender with lower rate? If I do start shopping for a better offer will it effect me in any way ie.credit checking?

      • Avatarfinder Customer Care
        JohnSeptember 7, 2018Staff

        Hi Nicole,

        Thank you for leaving a question.

        You do not need to keep on applying for a better deal but instead you may ask around on what other lenders could offer. The only time your credit score is when you are already applying for the loan. Speak with lender representatives and see what they could offer, if you do find a better deal then ask what the requirements are and see if you qualify before you apply for the loan. Hope this helps!

        Cheers,
        Reggie

    4. Default Gravatar
      JODIEApril 19, 2018

      I have $30,000 to consolidate. Looking for a way to consolidate with a fixed interest rate between 9% – 12%

      • Default Gravatar
        NikkiApril 19, 2018

        Hi Jodie,

        Thanks for your message and for visiting Finder.

        The NOW Finance unsecured personal loan and the NAB unsecured loan has a fixed interest rate from 9-12%

        Alternatively, The information above shows you multiple providers for debt consolidation. Please use our comparison table to help narrow down your options. Simply, enter the amount to be consolidated and sort the table based on interest rate p.a. to show you the providers within a 9%-12% fixed interest rate.

        Once you have chosen a particular lender, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with your loan application or get in touch with their representatives for further assistance. Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

        Hope this helps! Feel free to message us anytime should you have further questions.

        Cheers,
        Nikki

    5. Default Gravatar
      LouiseJanuary 24, 2018

      I need to consolidate some loans and credit cards to the value of $97,000 – my bank only offers up to $50,000 – what do you suggest?

      • Avatarfinder Customer Care
        JonathanFebruary 21, 2018Staff

        Hi Louise,

        If your bank only offers up to $50,000 it could be better to consider applying for a new balance transfer offer with a higher credit limit or a personal loan for debt consolidation.

        You may open the links above to compare your options. These pages have a comparison table you can use to see which provider suits you. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

        Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

        Thanks,

        Jonathan

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