Two ways to consolidate
1. A consolidation loan
You take out one new loan to pay off several existing debts. If the new rate is lower and you close the old accounts, you can save on interest and have just one repayment. This depends on your credit history and your ability to repay the new loan.
2. A negotiated arrangement
If borrowing more is not right for you, we can negotiate with your existing creditors instead, asking for interest freezes or reduced repayments, and bring everything together into one payment through a debt management plan.
Is consolidation right for you?
| Consolidation may suit you if | Be careful if |
|---|---|
| You can get a lower rate than you pay now | The new loan has a longer term, so you pay more interest overall |
| You will close the old cards once they are paid | You might run the cards back up again |
| Your repayments are affordable | You would need to secure the loan against your home or car |
Avoid too many applications
Every credit application can be recorded as an enquiry on your file. Several applications in a short time can make lenders more cautious. We look at your situation first so you only apply where it makes sense. Read more in our guide to credit enquiries.
How our fees work
Before we charge for any service, we give you a written Credit Quote that sets out exactly what we will do and what it costs. You decide whether to go ahead. Nothing is charged for the first conversation, and we never guarantee a particular outcome, because the result always depends on the facts on your file and the response of your creditors.
Free options are always available
You can contact your lender directly, ask for a free copy of your credit report, lodge a free complaint with Australian Financial Complaints Authority (AFCA), or speak with a free, independent financial counsellor through the National Debt Helpline (1800 007 007). We are happy to tell you if a free option suits your situation better than a paid service.