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Credit card debt

Credit card debt consolidation: several cards, one repayment.

Consolidating credit cards means one loan pays out the card balances, so there’s one repayment, one rate and a set end date. Whether it helps depends on the full cost of the new loan, so we check that with you 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
Paid-out cards keep their limits unless they’re closed

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

How credit card consolidation works

Credit cards often carry higher interest than other kinds of borrowing, and paying only the minimum can take a long time to clear a balance. With several cards, there are several rates, due dates and minimums to keep track of.

A consolidation loan pays out the cards. You then repay the loan over a fixed term, often with a fixed repayment. It doesn’t change what you owe: the balance moves to the new lender. You come out ahead only if the rate, fees and term add up to less than you’d pay by staying on the cards.

Other debts, such as personal loans, buy now pay later and store finance, can often be included too. Our guide to debt consolidation covers the wider picture.

What we compare before you apply
The new loan’s interest rate against your card rates
Establishment and ongoing fees
The total repaid over the full term, not just each repayment
Any security the lender asks for
What happens to the cards once they’re paid out
Our debt consolidation calculator gives a rough idea of repayments.
Honest answer

Is consolidating my credit cards right for me?

These are the situations where it tends to help, and where it usually doesn’t.
It can make sense when
You have balances on several cards at high interest
The loan’s total cost is lower than staying on the cards
Your income is steady enough for one regular repayment
You’re ready to close the cards, or stop using them, once they’re paid out
It’s usually not the answer when
The repayment still wouldn’t fit your budget
The only loan available costs more overall
Several recent applications have already been declined
The cards would likely be used again, leaving the loan and new card debt

See the alternatives →

After the cards are paid out

Your cards and your credit file

What happens to the cards

Once the cards are paid out, they keep their limits unless they’re closed. If they’re used again, you end up repaying the loan and new card balances at the same time. Some lenders make closing the cards a condition of the loan. We go through this with you before you decide.

What shows on your credit file

Applying for the loan records a credit enquiry, and the new loan appears on your credit file with its repayment history. Keeping up repayments can help your history over time. Several declined applications in a short time can make the next one harder, which is why we check first. More on consolidation with bad credit.

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

Other ways we can help with credit card debt

If a consolidation loan isn’t realistic or wouldn’t leave you better off, these are the other options we work through with you. See all debt solutions for the full list.

Informal arrangements
We negotiate new repayment terms with each card provider, based on what you can realistically pay.
Good to know: creditors don’t have to agree, interest may keep running, 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. We’re an AFSA-registered administrator.
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 →

Credit file corrections
If a card default or late payment 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 →

Credit card debt questions

Can I consolidate credit card debt into one loan?

Often, yes. A consolidation loan can pay out several card balances, leaving one repayment. Lending criteria apply and some applications are declined, so we check whether a loan looks realistic before anything is applied for.

Will consolidating my credit cards save me money?

Only if the new loan’s rate, fees and term add up to less than you’d pay on the cards. A longer term can make each repayment smaller but cost more in total. We compare the full cost with you.

Is a balance transfer the same as consolidation?

It’s a similar idea: a new card takes over the balances of your old ones. Promotional rates usually end after a set period, and any balance left then attracts a higher rate. A consolidation loan has a fixed term instead.

Do I have to close my credit cards?

Some lenders require it as a condition of the loan. Even when they don’t, closing the cards means you won’t end up repaying the loan and new card balances at the same time.

Does consolidating credit cards hurt my credit score?

Applying records a credit enquiry, and the new loan appears on your credit file. Keeping up repayments can help your history over time. Several declined applications in a short time can make it harder to get credit.

What if a loan isn’t right for me?

We’ll say so, and go through the alternatives, such as an informal arrangement with your card providers or a debt agreement, each with its downsides.

See whether consolidating your cards 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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