Debt Consolidation Loan Solutions

Debt Consolidation Resources

Debt Consolidation HomeFinance Home

Debt Consolidation Calculators

Personal Loan Calculator Home Loan Refinance Calculator

Related Articles

Effective Personal Loans for Debt Consolidation Mastering Debt: Strategies to Regain Financial Control Achieve Peace: Balance Debt and Savings Wisely Boost Your Australian Credit Score Quickly

Chatbot

Q&A with
Paige Estritori

Hi! How can I help?

Send

People also ask:

More Finance Options

Bike LoansBoat LoansBusiness LoansCar LoansCaravan LoansCredit CardsDebt ConsolidationFinanceHome LoansJetski LoansMortgage ReductionPersonal LoansShort Term CashTruck Loans

How does debt consolidation work?

Compare costs, not just monthly repayments

Start by listing each debt's outstanding balance, interest rate, fees and repayment amount. Compare the total remaining cost of your existing debts with the total repayments and fees for a consolidation loan, including any costs to close the old loans.

A lower monthly repayment may result from a longer loan term rather than a lower overall cost. Check the interest rate, establishment and ongoing fees, early repayment conditions and how long it will take to repay the debt.

Understand the risks of refinancing debt

Debt consolidation loans may be secured or unsecured. Securing previously unsecured debts against your home or another asset puts that asset at risk if repayments are not met. Consolidating short-term debts into a mortgage can also increase the interest paid if those debts are repaid over a much longer period.

Bad credit can limit borrowing options and may mean higher costs. Before taking on new debt, consider whether the repayments fit your budget after essential living expenses. Reusing credit cards or other credit facilities after consolidation can leave you with both the new loan and fresh debts.

Consider alternatives if repayments are difficult

If you are struggling with outstanding bills or overdue car, mortgage or other loan repayments, contact your creditors to discuss financial hardship options. A financial counsellor can help you understand your budget, debts and available options without taking out another loan. If repossession or legal action is threatened, seek financial counselling or legal assistance promptly.

Share this product:

Please note that some of our calculators may use assumptions that are not necessarily applicable to your current specific circumstances and we therefore cannot always guarantee their accuracy.

We recommend that you seek professional financial advice from a licensed professional before proceeding with a loan.

Loan Repayment and Finance Modeling Calculators