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site-logos Symple Loans Personal Loan
rate from
site-logos 5.75%
over 60 months
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Earn up to 50,000 Qantas Points with a more rewarding personal loan from Symple

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

*WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 5 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Savvy provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation or seeking independent advice. While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Savvy.

Simplify and streamline your debt payments

Struggling to manage multiple debts? A Debt Consolidation loan could simplify your finances and help you pay them off sooner.

Consolidating debts reduces interest

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. These may be short-term solutions, but will cost us more in the long run. Taking out a debt consolidation loan “rolls over” all your smaller debts into one loan product. This means reducing your overall interest burden and means you get out of debt quicker. It can also help you.

We shop your loan around to over 25 of Australia’s leading lenders and banks to ensure you get a fair deal.

Get on top of debt

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.

Savvy understands your situation. That’s why your personal consultant will give you an honest assessment of your financial situation and tell you if a debt consolidation is right for you, accurately assessing your potential to reduce your interest rate payments and move forward with less debt and eventually, a cleaner credit history.

More on debt consolidation loans

Why would I consolidate my debts?

Put simply, a single loan is much easier to manage than multiple debts.

When you have multiple debts, you usually have to account for different repayment amounts and timings. This can make it difficult to plan your finances and increases the likelihood of a payment default. And, if you get behind on your payments, it can be very difficult to catch up.

Also, chances are that at least one of the debts will have a high interest rate. If you’re only making the minimum repayments on this debt, it will take a long time to clear. In the interim, you’ll be incurring a lot of extra interest and additional administration fees.

Being able to roll all your debts into one loan significantly simplifies your finances. It means you will only have one payment to budget for each month and one institution to deal with. This can take a lot of stress out of the situation and help you clear your debts quicker.

A debt consolidation loan could also save you money. As interest rates are usually lower than for other credit types, the total cost of the loan should be less. You can also choose your payment term and may be able to arrange a lower monthly repayment amount.

Would a debt consolidation loan work for me?

Everyone’s situation is unique and not all financial products are suitable for everyone. As such, it’s important to carefully consider your own circumstances and what will work best for you.

That being said, if you are currently repaying multiple debts, a debt consolidation loan could be a good option. It can make your repayments much easier to manage and save you a lot of stress. You may also be able to save on interest and arrange a more workable repayment amount.

To work out whether a debt consolidation loan might be right for you, ask yourself the following questions:

  • Are you struggling to afford all your repayments? While individual repayments may be serviceable, multiple payments can add up quickly. However, consolidating your debts may allow you to arrange a more manageable monthly repayment scheme.
  • Do you have to prioritise your debt repayments? If you are able to make additional repayments, it can be hard to choose which debt to clear first. However, consolidating your debts simplifies this and means you only have a single debt to repay.
  • Are you worried about meeting all your loan repayment obligations? Juggling multiple debts can be time consuming and stressful. However, consolidating your debts rolls them all into one, making them much easier to manage.
  • Do some of your debts have high interest rates? The higher the interest rate, the more you pay over the life of the debt. However, a debt consolidation loan will usually have a lower interest rate and could reduce the debt’s total cost.
  • Do you feel like you’re not making any inroads into your debt repayments? When you have multiple debts, it can be hard to see the progress you’re making toward clearing them. However, a debt consolidation loan has a set term, and you will know how much you have left to pay.


If you said yes to one or more of these questions, consolidating your debts could be a good option.

What can I use a debt consolidation loan for?

As with any loan, when you apply for a debt consolidation loan, it will be recorded on your credit file. This will cause your credit score to dip slightly – at least in the short-term.

However, if you make your repayments in full and on time, the overall impact should be positive. Your credit report will show this good financial behaviour and your score will improve. Consolidating your debts will also help clear your oldest debts, which will also help lift your credit rating.

Also, if you are considering consolidating your debts, it’s likely your credit rating is already at risk. As such, the short-term impact of a credit application may be worth avoiding the long-term impact of a missed payment.

How can a debt consolidation loan help improve your financial health?

When you have multiple debts, each lender will charge you their own set of fees. You will also be subject to different interest rates and some will be higher than others. This can make it hard to chip away at your debt – and even harder to get back on track if you fall behind.

However, when you consolidate your debts, you have one repayment to make each month. And, as you are not paying fees to multiple lenders, more of your money goes to repaying 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.

Repayments with multiple debts

Debt Amount Owing Comparison Rate Monthly Repayments Term Total Cost
Personal Loan
3 years
Car Loan
5 years
Credit Card 1
24 years*
Credit Card 2
26 years*





Please note: Credit Card calculations are based on making the minimum repayment each month, which would decrease over time. They also assume no further debts incurred on the card during the payment period.

Repayments for a consolidated debt

Debt Amount Owing Comparison Rate Monthly Repayments Term Total Cost
Consolidated Loan
5 years

As this example shows, consolidating four debts into a single loan can save you a substantial amount in interest. It can also reduce your monthly repayments, making them easier to manage.

How Savvy can help you with your debt consolidation

Experts in helping people with debt consolidation

Debt Consolidation v Balance Transfer

Can’t decide whether to consolidate your debt or transfer your balance? Here we explore the good and bad points of each approach.

Pros and cons of debt consolidation


Most providers will consider applicants with lower credit scores

Set monthly repayment amount (depending on type of consolidation loan)

Lower interest rate than many other credit types

Can positively impact your credit rating in the long-term


Can negatively impact your credit rating in the short-term

Potential fee for repaying debt early

Converting unsecured debts to a secured debt could put your assets at risk

Pros and cons of balance transfer


Often interest free for an initial period (e.g. 3 months)

Flexible repayments above minimum amount

No fee for repaying debt early


Can negatively impact your credit rating in the short-term

Higher interest rate if debt not settled during interest free period

Many lenders will charge a debt transfer fee of 1 – 3% of the balance

Most lenders only allow the transfer of one credit card balance, up to a set amount

Can continue to add to the debt during repayment period

Applying for a debt consolidation loan

The application process for a debt consolidation loan is a little different to other personal loans. Here’s what you will need to do.

Common questions about debt consolidation answered

Still not sure if a debt consolidation loan would work for you? Check out these frequently asked questions.

How is a debt consolidation loan different to a personal loan?

A debt consolidation loan is actually a personal loan that can only be used for a specific purpose. As such, it’s possible to get many of the same options and features as you can with other personal loans.

Is debt consolidation the best option for me?

No two financial situations are the same, and we encourage you to get an accurate assessment before making a decision. However, if your repayments across many different credit products such as personal loans, credit cards, charge cards, or store credit cards are attracting more interest than you can keep up with, a debt consolidation loan may reduce this interest rate to a more manageable figure.

Are debt consolidation loans and debt agreements the same thing?

No. A debt agreement is a legal arrangement between you and an existing creditor where you agree an alternative payment plan. It does not settle any outstanding amount or reduce the number of debts you have.

What is the difference between a debt consolidation loan and a personal loan?

In practice, very little: one can use a personal loan for debt consolidation exclusively. However, lenders may consider more factors when approving a loan for debt consolidation instead of spending it on non-tangible purchases, such as a holiday.

What is a comparison rate?

A comparison rate is a single figure expressing most fees and charges associated with a loan as well as the interest rate. Use our personal loans repayments calculator to determine repayment with a comparison rate.

How much can I borrow?

As with other personal loans, your borrowing power is determined by a number of factors (your income, credit history, etc.). However, consolidating your debts will be more a matter of need than want. The amount you will be loaned will depend on the amount of debt you’re consolidating.

Generally speaking, debt consolidation loans usually begin at about $4,000. For amounts less than that, it may be worth speaking directly to your creditor(s) about alternative payment arrangements.

Can I make extra repayments on a debt consolidation loan?

Yes. Many lenders allow you to make additional payments and settle your loan early. However, some will charge a fee for this so, if this is an option you want, choose your lender carefully.

Do I have to apply after I’ve made an enquiry?

No. There’s no obligation to apply. You may contact us for advice.

Do I need a security, e.g. a car or home, to apply?

No. However, you can put up a security if you wish to access lower interest rates. This carries significant risks in case of default, however. Ask your consultant for more information.

Can I get a consolidation loan with options such as extra repayments?

Yes. Your consultant can help you find a loan with no-fee extra repayments, redraw facilities, and more.

I am on Centrelink benefits. Can I apply?

Yes – many of our lenders classify Centrelink payments as a supporting income if you are employed. These lenders will honour requests for genuine debt consolidation.

Your helpful guides to debt consolidation personal loans

More informative guides about debt consolidation loans

Consolidation loans and personal loans

Debt consolidation loans are not a distinct product in the market – they are simply unsecured personal loans marketed to combining outstanding debts from various sources such as loans or credit cards and allowing you to manage the debt in one single product. You must use the loaned money to pay off the individual accounts and close them (saving you more money in annual fees, etc.) A debt consolidation loan can help you gain traction on your finances and improve your credit history in the process. 

Is a consolidation loan right for me?

Though you may have heard of debt consolidation loans, you must look at your finances at a whole to find out if it is a good idea. If you are running behind in your debt repayments, you may be able to come to an arrangement with your creditors in order to give you more time or flexibility. You have to figure out if the fees and charges – especially early exit fees – are worth your while. You can talk to one of our consultants to figure out these figures for you, and expect honest advice in return. Remember to be upfront with us – we’re here to help!

Debt consolidation over balance transfer

When credit card providers offer balance transfers, often for zero interest over a certain period, it does look like a good buy, if you have a high-interest card with a big balance. However, if you’re not careful, it can leave you worse off. Most cards will only allow you to transfer one balance over, and cap the transfer at a proportion of your credit limit. So if you have three or four debts, it only solves one of your problems. Plus, you’re likely to pay a balance transfer fee of around 1-3%. A consolidation loan avoids all that as it combines many debts together, wiping them out, and letting you get on to pay back what’s owed over time for a lower overall interest rate.

Securities and consolidation loans

In some cases, personal loans such as debt consolidation loans can be tied to a security, or in other words, a high-value asset such as a car or a home. This can increase chances of approval and lower your offered interest rate. This seems good on paper, but exposes you to risks. If you default on your loan, your lender has the right to repossess the collateral to make up for lost payments. A secured loan could save you money, if you have a stable enough financial situation to fulfil the terms of your loan. If you are unsure, talk to a financial professional or consultant at Savvy, with no-obligation.