Start with the real situation
Gather the current debts, repayments and goals before deciding whether consolidation may suit you.
Personal finance · Debt consolidation Australia
Debt consolidation loans in Australia, matched to your situation.
Combine eligible debts into one repayment - where it actually makes sense. loan-o compares what you owe now against the proposed loan, including repayments, fees, term and total cost, before you decide whether to proceed.
✓ Australian finance broker
✓ No credit check to enquire
✓ No obligation to proceed
Quick answer: what does debt consolidation do?
It replaces two or more eligible existing debts with one new loan. Whether that improves your position depends on the new repayment, fees, loan term and total amount repayable.
A clearer way to look at consolidation
See the situation, compare the numbers and understand the next step.
Compare more than one repayment figure
Look at fees, loan term and total cost - not just the headline monthly repayment.
Get straight answers from a Brisbane-based broker
loan-o combines local understanding with a practical explanation of what may be worth exploring.
Practical guidance before you apply.One new repayment is only useful if the overall structure works.
One repayment, where suitableExplore whether eligible debts can be combined.
The full cost consideredRate, fees, term and total amount repayable.
Lender options explainedUnderstand what may be available before deciding.
What it means
What is a debt consolidation loan?
Debt consolidation means using one new loan to repay two or more eligible existing debts. Instead of several separate accounts, you are left with the new loan and its agreed repayment schedule.
- Credit card balances
- Personal loans
- Some vehicle or personal finance
- Store finance and eligible buy now, pay later balances
- Some small amount or payday loans
Answer first
Debt consolidation can simplify how debt is managed. It does not automatically make debt cheaper.
The useful comparison is between what you are paying now and the full cost of the proposed new loan. Not every debt can or should be consolidated.
Ask a finance specialist about your debts →What may be included
Debts that may be considered for consolidation.
Depending on your circumstances, eligible debts may be combined into one structured repayment. Approval, rates and available options vary by lender.
Credit cards
Credit card debt
Eligible balances may sometimes be consolidated into a structured personal loan. Compare the new rate, fees, term and what happens to old card facilities after settlement.
Personal loans
Personal loans
More than one eligible personal loan may sometimes be combined. The proposed structure should be compared with the repayments and costs you already have.
Small amount lending
Payday and small loans
Options may be more limited where there are recent enquiries, repayment problems or hardship. Another loan is not automatically the right answer.
Other debts
Other eligible personal debts
Depending on the lender, some other consumer debts may be considered. Eligibility depends on the debt type, payout requirements and your overall financial position.
Every situation is different. We review your existing debts, repayments and lender requirements before discussing the options that may suit your circumstances.
The important part
One repayment is simpler. It is not automatically cheaper.
A smaller monthly repayment can look attractive. But extending debt over a longer term may reduce the regular repayment while increasing the total interest paid.
Establishment fees, payout costs and other charges can also change the result. That is why loan-o compares the proposed structure with what you already owe rather than judging it on the new repayment alone.
01
What are you paying now?
NowExisting balances, repayments and relevant loan costs establish the starting point.
02
What will the new loan cost?
NewConsider the proposed rate, comparison rate where applicable, fees and repayment.
03
How long will you be paying it?
TermA lower repayment achieved by substantially extending the loan deserves a closer look.
04
What does it cost to close the old debts?
PayoutPayout amounts, early termination costs or other charges may apply.
05
Does the overall structure make sense?
FitThe goal is not simply to move debt. The new structure needs to be practical for your circumstances.
See the structure
Compare the whole picture, not just one monthly number.
A useful debt consolidation comparison starts with existing debts, then tests the proposed loan against repayments, term, fees and total cost.
This illustrative layout is deliberately not a promise of savings. Your actual position depends on lender pricing, loan term, payout amounts and eligibility.
Learn what a comparison rate tells you →Before and proposed structure
What actually changes?
Compare before deciding
Current debts
RepaymentsSeveral
Due datesDifferent
Interest ratesDifferent
Loan termsDifferent
Proposed consolidation
RepaymentOne regular repayment
Loan termOne new term
PricingNew rate + fees
DecisionCompare total cost
The question that matters
Does the overall structure improve your position?
Debt consolidation calculator
See your existing debts as one repayment.
Already know what you owe? Add your current balances and repayments to loan-o’s debt consolidation calculator, then adjust the indicative rate and term to explore how a consolidated repayment could compare.
Try the debt consolidation calculatorIndicative only. Calculator results are not a quote or offer of finance and do not include every fee, charge or payout cost.
Example input
Existing accounts3 accounts
Current repayments$1,150 / mo
What to compareRepayment + term + fees + total cost.
Broker value
What we check before discussing a debt consolidation loan.
Before a lender application is considered, loan-o can work through the numbers and circumstances that change whether a new structure actually makes sense.
The answer is sometimes to consolidate. Sometimes it is to consolidate only particular debts. And sometimes another loan is not the appropriate next step.
Existing balancesEstablishes how much actually needs to be refinanced.
Current repaymentsShows what you are already committed to.
Existing rates and costsCreates a meaningful point of comparison.
Payout figuresThe account balance may not equal the final payout amount.
New loan fees and termCan materially change repayment and total cost.
Income and expensesHelps determine whether repayments appear affordable.
Credit history and enquiriesMay affect lender options and pricing.
Lender criteriaA good structure still needs to fit an appropriate lender.
What happens after you enquire?
You will know what happens before anything is submitted.
The first step is understanding your situation. A lender application only comes later, if there is an option worth considering and you choose to proceed.
01 / REVIEW
We review what you have told us
We look at the debts, repayments and goal you have shared.
02 / TALK
We understand the situation
We clarify income, expenses, commitments and anything that affects suitability.
03 / EXPLAIN
We explain what may be worth exploring
Where there appears to be a sensible option, we explain the structure, costs and lender requirements.
04 / DECIDE
You decide whether to proceed
Nothing is submitted simply because you enquired. You choose whether to move forward.
An enquiry does not commit you to taking out a loan. Learn about loan-o’s credit assistance process →
Credit history
Debt consolidation with bad credit.
A less-than-perfect credit history does not tell the whole story, but it can affect the lenders, rates and structures that may be available.
loan-o does not promise “easy approval”, “instant approval” or “guaranteed debt consolidation”. We first try to understand what happened, what you owe now and whether there appears to be a sensible lending option worth exploring.
Talk through your situationMay matterMissed or late repayments and defaults.
May matterMultiple recent credit enquiries or high existing commitments.
May matterRecent payday lending or debts already in arrears.
May matterEmployment, income stability and current account conduct.
Personal loan consolidation
Can a personal loan be used for debt consolidation?
Yes, a personal loan may be used to consolidate eligible debts where the lender permits the purpose and the loan is suitable for the borrower.
Unsecured
Unsecured consolidation
An unsecured personal loan does not generally require an asset as security. Lender criteria and pricing may differ because the lender does not hold an asset as security.
Secured
Secured consolidation
Some structures may use an acceptable asset as security. That can change pricing and options, but it also changes the borrower’s risk if repayments are not maintained.
Have equity in your home? See how consolidating through a mortgage refinance works →
Australian finance broker
Straight answers from a Brisbane-based Australian finance broker.
loan-o is based in Brisbane and helps Australian borrowers understand whether consolidating personal debts may make sense before a lender application is made.
Meet the people behind loan-o →
The loan-o approach
Understand the borrower first. Match the lender second.
No guaranteed approvals. No promise that the cheapest-looking repayment is automatically the best outcome. Just a proper look at the structure, the numbers and suitable lender options.
Finance broker in Brisbane →Sometimes another loan is not what you need.
National Debt HelplineIf you are struggling to meet essential living expenses, unable to maintain existing repayments or experiencing serious financial hardship, new credit may not improve the situation. It may be more appropriate to speak with your existing lenders about hardship assistance or obtain free help from a financial counsellor.
Frequently asked questions
Debt consolidation questions, answered clearly.
Short answers to the questions Australian borrowers often ask before considering debt consolidation.
A debt consolidation loan is a new loan used to repay multiple eligible existing debts. Those debts are then replaced by the new loan and its repayment schedule.
A personal loan may sometimes be used to repay eligible existing debts. Whether that is appropriate depends on the debts, your financial circumstances, lender criteria and whether the proposed structure improves the overall position.
Credit card balances can sometimes be included in a debt consolidation loan. Compare the new rate, fees, repayment term and total cost rather than assuming consolidation will automatically save money.
Some lenders may consider consolidating payday or small amount loans, but options can be more limited. Repayment history, income, expenses, credit profile and the circumstances behind the existing loans may all be relevant.
Possibly, but lender options and pricing may be different. A broker can review the circumstances and available options before deciding whether submitting an application is worthwhile. There is no guaranteed approval.
There is no single debt consolidation interest rate. Pricing can depend on the lender, amount, term, whether the loan is secured or unsecured, and the borrower’s overall credit and financial profile.
Not necessarily. The rate should be considered alongside the comparison rate where applicable, fees, loan term, repayments, total amount repayable, security and repayment flexibility.
Extending the loan term can reduce the regular repayment in some circumstances, but it may also increase the amount of interest paid over the life of the loan.
No. loan-o is a finance broker, not a lender. We help borrowers understand and compare suitable lender options and guide the application process where proceeding appears appropriate.
Start with the situation, not the application
Not sure whether consolidation is actually better?
Tell us what you owe and what you would like to change. We will help you understand what may be worth exploring before you decide whether to apply.
Check your consolidation optionsTry the debt consolidation calculator1300 156 266No obligation. loan-o is a finance broker, not a lender.