Debt consolidation personal loans

According to credit reporting agency Veda, 600,000 Australians are at-risk for credit default. This may be due to juggling many credit products at once, and struggling to get ahead of it all. It happens to all of us; our finances get more complicated when we take out credit cards, store credit, or personal loans to cover unexpected expenses. 

If you have multiple debts on the go at once, it can be difficult and costly to manage them all individually. Taking out a personal loan is a great way to consolidate your debts, with affordable rates and flexible repayment options helping simplify the process of paying them off.

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site-logos Harmoney Unsecured Personal Loan
  Advertised
rate from
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rate from
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Repayments
 
site-logos 5.35%
fixed
6.14% 
fixed
$570.96
over 60 months
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Borrow up to $50,000 with personalised rates and repay over 3 or 5 years loan terms.

site-logos OurMoneyMarket Unsecured Personal Loan
  Advertised
rate from
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rate from
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Repayments
 
site-logos 5.45%
fixed up to 20.99% p.a.
6.04% 
fixed up to 23.83% p.a. based on $30,000 over 5 years
$572.34
over 60 months
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Apply for an unsecured personal loan up to $75,000 and receive a special rate of 5.45% p.a. for first 12 months for loan amounts over $35,000.

site-logos Symple Loans Personal Loan
  Advertised
rate from
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rate from
Monthly
Repayments
 
site-logos 5.75%
variable
6.47% 
fixed
$576.50
over 60 months
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Earn up to 50,000 Qantas Points with a more rewarding personal loan from Symple

site-logos Now Finance No Fee Unsecured Personal Loan
  Advertised
rate from
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rate from
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site-logos 5.95%
fixed up to 17.95% p.a.
5.95% 
fixed up to 17.95% p.a. based on $30,000 over 5 years
$579.29
over 60 months
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Borrow up to $50,000 with no fees, now and forever. Minimum requirement to earn $22,100 p.a. and have good to excellent credit.

site-logos SocietyOne Unsecured Personal Loan
  Advertised
rate from
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rate from
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Repayments
 
site-logos 5.95%
fixed up to 19.99% p.a.
5.95% 
fixed up to 20.93% p.a. based on $30,000 over 5 years
$579.29
over 60 months
Go to site
More details

Borrow up to $50,000 with rates between 5.95% p.a. and 14.99% p.a. based on your credit rating.

Harmoney customers applying for loans of this amount and length can receive an interest rate between 5.35% p.a. and 19.09% p.a. (6.14% p.a. and 19.99% p.a. comparison rates). Loan terms are offered for lengths of three or five years. A $30,000 personal loan repaid monthly over five years at the minimum 6.14% p.a. comparison rate will cost an estimated $34,916.34, inclusive of all interest and most fees, with monthly repayments of $581.94.

Symple customers applying for loans of this amount and length can receive an interest rate between 5.75% p.a. and 25.99% p.a. (6.47% p.a. and 29.20% p.a. comparison rates). Loan terms are offered for lengths of one to seven years. A $30,000 personal loan repaid monthly over five years at the minimum 6.47% p.a. comparison rate will cost an estimated $35,193.78, inclusive of all interest and most fees, with monthly repayments of $586.56.

SocietyOne customers applying for loans of this amount and length can receive an interest rate between 5.95% p.a. and 19.99% p.a. (5.95% p.a. and 21.70% p.a. comparison rates). Loan terms are offered for lengths of two, three or five years. A $30,000 personal loan repaid monthly over five years at the minimum 5.95% p.a. comparison rate will cost an estimated $34,757.21, inclusive of all interest and most fees, with monthly repayments of $579.29.

Now Finance customers applying for loans of this amount and length can receive an interest rate between 5.95% p.a. and 17.95% p.a. (5.95% p.a. and 17.95% p.a. comparison rates). Loan terms are offered for lengths of 18 months to seven years. A $30,000 personal loan repaid monthly over five years at the minimum 5.95% p.a. comparison rate will cost an estimated $34,757.21, inclusive of all interest, with monthly repayments of $579.29.

OurMoneyMarket customers applying for loans of this amount and length can receive an interest rate between 5.45% p.a. and 20.99% p.a. (6.04% p.a. and 23.83% p.a. comparison rates). Loan terms are offered for lengths of one to seven years. A $30,000 personal loan repaid monthly over five years at the minimum 6.04% p.a. comparison rate will cost an estimated $34,855.67, inclusive of all interest and most fees, with monthly repayments of $580.93.

The features and benefits of debt consolidation loans

Borrow up to $50,000

You can cover 100% of your outstanding debts up to $50,000 with a debt consolidation personal loan, with amounts starting at just $2,000.

1-7 years loan term

Our lenders afford you the flexibility to repay your loan at your pace, with terms available from one to seven years to shape the size of your repayments.

All debts accepted

Whether you have an existing personal or car loan on the go or outstanding credit card debts accruing interest, you can use your personal loan to cover them.

Affordable interest rates

Bringing all of your debt under one rate, particularly high-interest ones like credit cards, could help you save thousands of dollars overall.

Fixed repayments

Because your interest and fees are fixed, your repayments will remain the same across your loan term to allow for more accurate budgeting.

Freedom to repay early

You can compare lenders who offer no fees associated with making additional repayments or paying your loan off early and save on interest and fees.

Instant outcome and rapid money transfer

An instant response will be sent as quickly as 60 seconds after your initial application, while you can have the money in your account inside 24 hours.

Select your repayment schedule

In addition to choosing your term, you can opt for either weekly, fortnightly or monthly loan repayments to suit your financial needs.

Why choose Savvy for your debt consolidation loan?

How to apply for a debt consolidation loan

How can I save with a debt consolidation loan?

When you have multiple debts, each lender will charge you their own set of fees. You’ll also be subject to different interest rates, with some higher than others.

However, when you consolidate your debts, you only have one repayment to make each month. Additionally, as you’re not paying fees to multiple lenders, more of your money goes to paying down the loan. In addition to making it easier to track your progress, this can actually save you money in the long run.

To help explain this, here’s a worked example of a common debt consolidation scenario.

Debt Amount Owing Comparison Rate Monthly Repayments Term Total Cost
Personal Loan
$7,500
9.41%
$238.15
3 years
$8,573.40
Car Loan
$25,000
9.39%
$512.79
5 years
$30,767.58
Credit Card 1
$5,000
20.74%
$128*
24 years*
$14,479
Credit Card 2
$7,500
13.99%
$152*
26 years*
$16,846

TOTAL

$45,000

$1,030.94

$70,665.98

*Credit card calculations are based on minimum monthly repayments, which decrease over time. Other associated credit card costs are not included in this calculation.

To compare with the above table, you can see how consolidating these debts into one personal loan can help you save a considerable amount of money.

Debt Amount Owing Comparison Rate Monthly Repayments Term Total Cost

Consolidated Loan

$45,000

9.41%

$931.94

5 years

$55,916.64

Frequently asked questions about debt consolidation

Do I need security for a debt consolidation loan?

No – these loans are unsecured, meaning you won’t be required to use an asset as collateral for the loan. This grants you more freedom to use the loan for a wider variety of purposes as well as ensure that, if you become unable to repay your loan for whatever reason, there won’t be any chance of you losing a valuable asset.

Can I use a debt consolidation loan to pay for other things?

Yes – your personal loan doesn’t just have to be used towards consolidating debts. You can ask for funds beyond your debt total for any number of purposes, such as for home improvements, purchasing a vehicle or simply for a quick getaway.

Are balance transfers a better option than personal loans for debt consolidation?

Probably not – balance transfers are made by moving the amount owed from one credit card to another. The advantage of doing this is that, if you’re able to repay your owed funds within their low or no interest period, you can save a substantial amount.

However, like any credit card, interest rates after this point are much higher than the standard personal loan, meaning any amount not paid within that period will accrue significant interest. If your debts are more substantial, a loan is likely to offer you a cheaper, more manageable option.

Are debt consolidation loans available to borrowers with bad credit?

Yes – we’re partnered with flexible lenders who can work with borrowers who have average to poor credit scores. Interest rates will be higher for these loans, as borrowers are deemed a greater risk compared to those with good credit ratings, and you generally won’t be able to borrow much more than $10,000. However, they’re likely to still cost less than letting each of your debts run its course.

If I have defaults on my file, can I access a personal loan?

Yes – although some lenders will require a clean record when it comes to defaults and bankruptcies, this isn’t the case with all of them. You can find a lender to suit your financial situation with Savvy today.

Am I able to consolidate debts between myself and my partner?

Yes – if you and your partner both have outstanding debts that you’d like to consolidate, you can do so on the same loan. Making a joint application with your partner is a great way to maximise your chances of approval and increase your overall borrowing power.