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Debt consolidation

Debt consolidation: one repayment instead of several.

A debt consolidation loan pays out several debts, so there’s one repayment to keep track of. It isn’t right for everyone, so we check whether it would actually leave you better off before anything is applied for.
Answer 9 quick questionsCall 1300 351 008
Fee-based service. Fees, and any commission we receive from a lender, are explained before you decide.
Good to know before you apply
Lending criteria apply, and some applications are declined
A longer loan term can mean paying more interest overall
Applying adds a credit enquiry to your credit file
A loan secured against your home puts it at risk if repayments are missed

Is it right for me? →

LicensedAustralian Credit Licence 390820
Registered with AFSADebt agreement administrator 1403
Since 2009Bankstown-based team
Real reviewsOn ProductReview.com.au
The basics

What is debt consolidation?

To consolidate debt means rolling several debts into one. Instead of paying different amounts, at different interest rates, on different dates, you make one repayment on one loan with one interest rate and a fixed term.

The new loan pays out the old debts. It doesn’t reduce what you owe: the balance moves to the new lender. Whether you come out ahead depends on the rate, the fees and the length of the new loan compared with what you’re paying now. Our full guide to how debt consolidation works goes through it step by step.

Debts that can usually be consolidated
Buy now pay later and store finance
Car and equipment loans
Some tax debts
Whether a particular debt can be included depends on the lender.
Honest answer

Is debt consolidation right for me?

It’s a big decision. These are the situations where it tends to help, and where it usually doesn’t.
It can make sense when
You’re paying high interest on several debts, such as credit cards
The new loan’s total cost is lower than what you’re paying now
Your income is steady enough to keep up one regular repayment
You’ve worked out a budget and know what you can afford each month
You’re ready to close or stop using the cards once they’re paid out
It’s usually not the answer when
The repayments still wouldn’t fit your budget
The only loan available costs more overall than your current debts
You’d need to secure it against your home and couldn’t risk missing repayments
Several recent applications have already been declined
The cards would likely be used again after they’re paid out

See the alternatives →

Loan types

Secured or unsecured?

There are two main types of consolidation loan, and the trade-offs are different.
Unsecured consolidation loan
No asset is put up as security.
Good to know: rates are usually higher and approval is harder, especially with missed payments on your credit file.
Secured loan or home loan refinance
The loan is secured against an asset such as your car or home. More on refinancing your home loan.
Good to know: the rate may be lower, but the asset is at risk if you can’t keep up, and spreading short-term debt over a long home loan can cost more in total.
How we help

How it works with Debt Negotiators

1

Answer 9 quick questions
About a minute. Roughly what you owe, who to, and what comes in each week. Start here.
2

We look at the whole picture
Your debts, income, budget and credit file, so we can tell you honestly whether a consolidation loan looks realistic before anything is applied for.
3

You hear your options, then decide
If a loan makes sense, we approach lenders on our panel. If it doesn’t, we’ll say so and explain the other options.
Does it affect my credit file?

Applying for a loan records a credit enquiry, and the new loan appears on your credit file as a credit account with its repayment history.

Keeping up repayments on the new loan can help your credit history over time. Several declined applications in a short time can make the next one harder, which is why we check first. Our debt consolidation calculator gives a rough idea of repayments.

What it costs: Debt Negotiators is a fee-based service. Fees are explained before you decide, and the first conversation costs nothing. If you take out a loan we arrange, we may receive a commission from the lender. We’ll tell you about it before you decide. The rates are in our Credit Guide.

If a loan isn’t right

Alternatives to debt consolidation

If a consolidation loan isn’t realistic or wouldn’t leave you better off, these are the other options we work through.

Informal arrangements
New repayment terms negotiated with each creditor, based on what you can realistically pay.
Good to know: creditors don’t have to agree, and it may show on your credit report.

Learn more →

Debt agreements (Part IX)
A formal, binding agreement with your creditors to repay an affordable amount over time.
Good to know: it’s a formal insolvency option with income, debt and asset limits, and it’s listed on your credit report and the National Personal Insolvency Index.

Learn more →

Personal insolvency agreements
A formal agreement for higher debts or incomes, administered by a registered trustee.
Good to know: it’s listed on the National Personal Insolvency Index permanently.

Learn more →

Home loan refinancing
Rolling unsecured debts into your home loan, where lending criteria allow.
Good to know: your home is security for the debt, and a longer term can cost more overall.

Learn more →

Credit file corrections
If something on your credit file looks wrong, we review it and ask for a correction where there are grounds to.
Good to know: correct listings can’t be removed.

Learn more →

Bankruptcy information
We explain how bankruptcy works and how it compares with the other options.
Good to know: it has serious, long-lasting consequences and is usually a last resort.

Learn more →

Debt consolidation questions

Does debt consolidation hurt your credit score?

Applying records a credit enquiry, and the new loan is listed on your credit file. If you keep up the repayments, it can help your credit history over time. Several declined applications in a short time can make it harder to get approved, so it’s worth checking whether a loan looks realistic before you apply.

Can I get a debt consolidation loan with bad credit?

Sometimes. Lenders look at your income, expenses and credit history, and some applications are declined. We’ll tell you honestly whether a consolidation loan looks realistic before anything is applied for. More on bad credit and consolidation.

What debts can be consolidated?

Usually credit cards, personal loans, buy now pay later and store finance, car and equipment loans, and some tax debts. Whether a particular debt can be included depends on the lender.

Will a consolidation loan lower my repayments?

It depends on the rate, fees and term of the new loan. A longer term can make each repayment smaller but cost more in total, so we compare the full cost of the new loan with what you’re paying now.

How much does a consolidation loan cost?

The interest rate and fees depend on the lender, the loan amount and your credit history. Our debt consolidation calculator gives a rough idea of repayments. Debt Negotiators is a fee-based service, and our fees are explained before you decide.

What if a consolidation loan isn't right for me?

We’ll say so, and go through the alternatives: informal arrangements with your creditors, a debt agreement, a personal insolvency agreement or refinancing, each with its downsides.

How do I choose a debt consolidation company?

Check that the business holds an Australian Credit Licence, read independent reviews, and make sure you understand the fees and the full cost of any loan before you sign. Be wary of anyone who asks you to sign documents without reading them, or who says they can help no matter what. Debt Negotiators holds Australian Credit Licence 390820.

See whether consolidation fits

Answer 9 quick questions, then we call to go through consolidation and the alternatives.
Answer 9 quick questionsCall 1300 351 008
Debt Negotiators is a fee-based service. The information on this page is general and doesn’t take your circumstances into account. Outcomes depend on your situation, and no outcome is guaranteed. Formal options such as debt agreements and personal insolvency agreements can affect your credit report and your ability to get credit. ACL 390820 · AFSA RDAA 1403.
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Talk to us about your options. Debt Negotiators is a fee-based service, and fees are explained before you decide.
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