No-one wants to start the new year with a Christmas debt hangover. You may have resolved to get your debt under control, and debt consolidation could be a smart way to achieve this.


Debt consolidation involves taking out a new personal loan to pay off your existing debts. You can combine multiple debts such as credit cards, store cards, car loans, student loans and any other personal loans into one debt. This can help you by:

  • Simplifying your financial situation into one loan, which makes it easier to manage your repayments.
  • Providing you with access to more favourable repayment terms, such as a lower interest rate.
  • Easing your cash flow by reducing your monthly repayments or fees payable.


How do I consolidate my debts?

According to Moneysmart, the first step towards getting your debt under control is determining exactly how much you owe. List all your debts, making sure that you record the amount of each debt and its minimum monthly repayment. Ensure that you include all your debts, such as credit cards, store cards, loans, unpaid bills, fines, and any other money you owe. Add up the total amount you owe but try not to feel discouraged. Remember that you are taking the first steps towards reducing this amount and taking charge of your financial situation.

Compare your income against your expenses to work out how much you can afford to direct towards reducing your debt. Use our Budget Planner to help you with this calculation. You should be able to identify some spending cuts, such as cancelling subscriptions that you no longer need or cutting out unnecessary impulse purchases. It is very important to take stock and to prevent your current level of debt escalating further.

We're ready to help you with a personal loan. You can consolidate credit card or store card debt, car loans, other personal loans, and any other debt. Unlike most personal loans, the rate on our award-winning Fair Rate Personal Loan is guided by your credit worthiness – so you may even be rewarded with a better rate based on your borrowing history.

Our team will help manage the debt consolidation process, so you can focus on your loan repayments – just one payment at a time.


Next steps