Skip to main content

Debt Consolidation

Are you struggling to pay off a range of debts?

Debt Consolidation

Debt consolidation can be a great option for simplifying your finances, reducing your monthly payments, and getting back on your feet if you are struggling to pay off debts with different repayment dates and interest rates.

How does Debt Consolidation work?

To consolidate debt means to roll all your debts into one single debt amount. So instead of paying multiple amounts with varying interest rates on different dates each month, you’ll pay a single amount, once a month, with a single interest rate.

You can consolidate a range of different types of debts from credit card debts to other repayments and loans such as furniture or equipment payments, ATO debts, home loans and more.

Does a Debt Consolidation Loan Make Sense for Me?

If you are considering converting your debt into one payment, you should not take it lightly since it is a big financial decision. You should assess your current financial situation and determine which options would be most beneficial for you.

Our debt consultants can assist you by providing free assessments of your financial situation, developing budgets, and identifying the right debt solution for you. They have an in-depth knowledge of the law, as well as the debt processes and options available.

How does debt consolidation benefit you?

If done correctly, debt consolidation will result in significant benefits:

Simplify your finances

One loan to one creditor

Lower monthly repayments

Lower interest rates

Best Consolidation Loans?

This means you have just one debt to pay, at a fixed interest rate, with a single payment term for a consolidation loan. It is a single loan that combines all of your debts into one. It can, for example, be easier and simpler to manage your debt repayments by consolidating multiple credit cards with other loans and repayments.

The benefits of the right debt consolidation loan are:

  • Loan repayments at an affordable rate

  • Interest rates could be lowered

  • Loan terms with fixed payments

There are two types of debt consolidation loans:

  • Secured debt consolidation loans are when you secure the loan with an asset, such as your house or car.
  • Unsecured debt consolidation loans require no assets as security for defaulting on the loan. They are therefore harder to apply for.

Debt Consolidation: What does it involve?

Taking out debt consolidation, also known as combining your debts, allows you to pay off multiple loans into a single one. Your individual debts will be paid off, and you will only have one loan to repay. Your new monthly repayments should be lower and your interest rate should be lower if done properly.

To get started, make a list of each debt, along with the payment term, repayment rate and interest rates. Then you need to calculate the total value of the debts you’d like to consolidate. To make sure you get a better interest rate than you are paying, calculate the average interest rate of all your debts (add up the interest rates and then divide them by the number of debts to get an average). By comparing loan terms, you can find the one that offers the best terms for your situation. You may be looking for the lowest interest rate, or you may need a longer repayment term in order to make payments more affordable.