What is a debt consolidation personal loan?

If you’re paying off multiple credit cards, car loans, personal loans, or a combination of these, chances are you’re paying more in fees and interest than you need to. This is where debt consolidation using a personal loan can be handy. By rolling all your existing expenses into one loan, you can simplify your financial situation and potentially reduce how much you’ll pay in account keeping fees and interest costs.

Why use a personal loan for debt consolidation? 

Using a personal loan to consolidate debts can be a good strategy for borrowers who feel their financial situation is getting out of hand. With the right debt consolidation personal loan, it’s possible to pay less interest and fees on your debt, relieving some of your financial pressure.

Debt consolidation can help you to better manage your debts and avoid defaulting on a repayment. With just the one repayment to think about, calculating your incoming and outgoing expenses should be much simpler.

Using a personal loan for debt consolidation could also let you take advantage of features that your current loans may not offer, such as making unlimited extra repayments or a redraw facility. Changing your repayment frequency by switching to weekly or fortnightly repayments from monthly repayments can help you reduce the amount you pay in interest costs on your loan as interest is usually charged daily. So paying more frequently can help you reduce those charges.

Compare popular personal loans

Sort By
Product
Advertised Rate
Comparison Rate*
Company
Monthly repayment
Loan term
Total repayments
Real Time Rating™
Go to site

5.60%

Variable

5.70%

Family First Credit Union

$907

36 months

0 year to 10 years

4.41

/ 5
More details

6.99%

Fixed up to 25.69%

7.79%

Harmoney

$926

36 months

3 years

3.87

/ 5
Go to site
More details

11.99%

Variable

12.61%

Heritage Bank

$996

36 months

1 year to 5 years

3.16

/ 5
Go to site
More details

12.45%

Fixed

13.32%

ANZ

$1003

36 months

1 year to 7 years

2.95

/ 5
Go to site
More details

12.69%

Variable

13.56%

NAB

$1006

36 months

1 year to 7 years

3.07

/ 5
Go to site
More details

15.99%

Variable

16.84%

ANZ

$1055

36 months

1 year to 7 years

2.61

/ 5
Go to site
More details

4.45%

Variable

4.65%

Endeavour Mutual Bank

$892

36 months

0 year to 7 years

4.71

/ 5
More details

4.61%

Variable

5.96%

Coastline Credit Union

$894

36 months

1 year to 7 years

4.65

/ 5
More details

4.61%

Variable

11.42%

Coastline Credit Union

$894

36 months

1 year to 7 years

4.65

/ 5
More details

4.64%

Variable

4.91%

Community First Credit Union

$894

36 months

0 year to 10 years

4.50

/ 5
More details

4.95%

Fixed

4.95%

Hume Bank

$898

36 months

1 year to 5 years

4.68

/ 5
More details

5.31%

Variable

5.59%

Bank of us

$903

36 months

0.5 year to 10 years

4.41

/ 5
More details

5.60%

Variable up to 5.74%

5.60%

Family First Credit Union

$907

36 months

0 year to 10 years

4.41

/ 5
More details

5.04%

Variable

5.64%

Summerland Credit Union

$900

36 months

0 year to 7 years

4.40

/ 5
More details

4.85%

Fixed up to 11.9%

5.71%

Australian Military Bank

$897

36 months

1 year to 5 years

4.52

/ 5
More details

4.85%

Variable up to 11.9%

5.71%

Australian Military Bank

$897

36 months

1 year to 7 years

4.54

/ 5
More details

5.59%

Fixed

5.86%

Credit Union SA

$907

36 months

1 year to 7 years

4.43

/ 5
More details

5.25%

Variable

5.64%

Illawarra Credit Union

$902

36 months

1 year to 5 years

4.32

/ 5
More details

5.79%

Variable

5.92%

Police Bank

$910

36 months

1 year to 7 years

4.39

/ 5
More details

5.79%

Variable

5.92%

Bank of Heritage Isle

$910

36 months

1 year to 7 years

4.33

/ 5
More details

5.79%

Variable

5.92%

Police Bank

$910

36 months

1 year to 7 years

4.39

/ 5
More details

5.89%

Variable

6.10%

Horizon Bank

$911

36 months

0 year to 10 years

4.46

/ 5
More details

5.95%

Fixed

6.16%

Hume Bank

$912

36 months

1 year to 5 years

4.36

/ 5
More details

5.99%

Variable

7.71%

Horizon Bank

$913

36 months

0 year to 10 years

4.39

/ 5
More details

6.44%

Variable

6.68%

First Option Bank Ltd

$919

36 months

1 year to 7 years

4.21

/ 5
More details

6.09%

Variable

6.69%

Summerland Credit Union

$914

36 months

0 year to 7 years

4.22

/ 5
More details

6.70%

Fixed

6.70%

AWA Alliance Bank

$922

36 months

1 year to 7 years

4.12

/ 5
More details

6.45%

Fixed

6.80%

IMB Bank

$919

36 months

1 year to 5 years

4.10

/ 5
More details

6.49%

Fixed

6.88%

Beyond Bank Australia

$919

36 months

0 year to 7 years

4.16

/ 5
More details

6.49%

Fixed

6.88%

Greater Bank

$919

36 months

1 year to 7 years

4.23

/ 5
More details

6.95%

Fixed up to 17.95%

8.57%

Pepper

$926

36 months

1 year to 7 years

3.63

/ 5
More details

5.99%

Variable

6.20%

G&C Mutual Bank

$913

36 months

0 year to 7 years

4.37

/ 5
More details

6.69%

Fixed

7.04%

Newcastle Permanent

$922

36 months

1 year to 7 years

4.10

/ 5
More details

6.49%

Fixed

7.19%

RACV

$919

36 months

1 year to 5 years

4.01

/ 5
More details

6.61%

Variable

7.31%

Bank of Queensland

$921

36 months

0 year to 10 years

3.92

/ 5
More details

7.05%

Fixed up to 7.99%

7.40%

OurMoneyMarket

$927

36 months

1 year to 7 years

3.95

/ 5
More details

6.90%

Fixed

7.50%

SERVICE ONE Alliance Bank

$925

36 months

0 year to 7 years

4.02

/ 5
More details

7.49%

Fixed

7.49%

Beyond Bank Australia

$933

36 months

0 year to 7 years

4.02

/ 5
More details

7.25%

Fixed

8.59%

Bank First

$930

36 months

1 year to 5 years

4.06

/ 5