Savings .com.au
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NO ONGOING FEES
  • Australian residents and citizens only
  • Personal Loans from $5,000 to $25,000, with loan terms ranging from 24 - 48 months
  • Terms, Conditions and Lending Criteria apply
NO ONGOING FEES

Personal Loan

  • Australian residents and citizens only
  • Personal Loans from $5,000 to $25,000, with loan terms ranging from 24 - 48 months
  • Terms, Conditions and Lending Criteria apply
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Personal Loan

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    Fair Rate Personal Loan Opal

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      Consolidator

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        Low Rate Personal Loan (Average Credit)

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          Unsecured Personal Loan - Average

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            Medium Loan

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              Smart Loan

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                Secured Medium Loan

                  Important Information and Comparison Rate Warning

                  All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

                  The comparison rates in this table are based on a loan of $30,000 and a term of 5 years unless indicated otherwise. The comparison rates are for unsecured personal loans only for the relevant amounts and terms. The comparison rates for car loans and secured personal loans are for secured loans unless indicated otherwise. WARNING: 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. Comparison rates are not calculated for revolving credit products.

                  Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for the term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. Rates correct as of December 11, 2023. View disclaimer.

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                  Different debts flying in from all directions can be overwhelming. It’s easy to lose track of what payments you need to make, and even easier to start them, which makes things much worse. People in this position often turn to debt consolidation loans as a way to manage their repayments, removing the complications that come from having several different creditors.

                  What is a debt consolidation loan?

                  A debt consolidation loan is a a loan that allows you to combine all of your different debts (credit card debts, car loan, personal loans etc.) into one loan, so you only have one monthly repayment. To do this, you take out a new personal loan and use these funds to pay off all your existing debts. You then just pay off this new personal loan.

                  Doing this can make it easier to manage your debts, but it can also backfire if you end up stretching them out over a longer loan term. In this case, you could end up paying more in interest than you would without the debt consolidation.

                  Advantages of consolidating your debt through a personal loan

                  • Consolidating all your debt into a single loan makes managing your debt easier because you only have one monthly repayment to worry about.
                  • Personal loans can have lower interest rates than other common sources of debt, such as credit cards. If you consolidate your debts into a personal loan with a lower interest rate, your debts may become less expensive.

                  • Rolling all your debt into one loan means you could have fewer account keeping fees to worry about.
                  • Some providers offer bad credit debt consolidation loans, which are designed to allow people with low credit scores struggling with their debts to consolidate them.

                  Disadvantages of consolidating your debt through a personal loan

                  • If you fail to make the repayments on time, you could end up increasing the amount of debt you owe through late payment fees and incurring further interest.
                  • You may need to pay break costs for exiting any existing loans.
                  • You could be stretching smaller debts over a longer term, resulting in higher interest costs overall.

                  Do’s and don’ts of debt consolidation loans

                  • DO shop around and compare debt consolidation loans to find one with a competitive interest rate and terms and conditions that will work for you. Don’t forget to look at the comparison rate when comparing loans, as this is often a better reflection of the cost of the loan because it takes fees into account.
                  • DO look for a debt consolidation loan with flexible features, such as the ability to make extra repayments without being financially penalised, and flexible repayment frequency.
                  • DO remember to factor in all the costs before consolidating your debt into a single loan. There are establishment fees, early repayment fees, loan application fees, potential break costs for existing loans, and other fees. You may even find that it’s not financially prudent to consolidate your debt because doing so could end up costing you more than if you continue paying your current loans.
                  • DO set up automatic payments so that you never forget your monthly or fortnightly repayment. You can easily set up automatic transfers through your online banking app to your lender. You can time your automatic payments to coincide with payday, that way your debt gets paid off in the background and you don’t even have to think about it.
                  • DON’T roll your debts into your mortgage (at least, think VERY carefully before you do this). Mortgage repayments have very long loan terms (25-30 years) and stretching out your short term debts into such a long loan term could see you paying thousands more in interest and fees.
                  • DON’T switch to a longer loan term without considering the financial implications. While this can make your monthly repayments smaller, you could end up paying much more in interest and fees over the life of the loan than you would have if you’d just paid off the debt within the original time frame.
                  • DON’T take out more debt. If you’ve already got credit card debt or personal loan debt, don’t apply for more credit cards or payday loans to get you through. Going into even more debt to repay your existing debt can present itself as a ‘stop gap solution' but doing so can trap you in a debt spiral. If you are really struggling to get on top of your debts, there are other options which we’ll cover later.

                  Other ways to consolidate your debt

                  Besides consolidating your debt through a personal loan, there are two other common methods of debt consolidation:

                  Credit card balance transfer

                  If you have credit card debt across several cards, you can combine the debts onto a single card using a balance transfer.

                  Under this method, your credit card debts will be moved onto one card with a lower interest rate, or even a 0% interest rate. This period normally lasts between three and 26 months. If you don’t pay off your debts in this time though, any debt that hasn’t been paid off is charged at a revert rate, which tends to be far higher than most credit card interest rates.

                  An ASIC review found that 30% of balance transfer users end up increasing their debts by at least 10%. If you are considering a balance transfer, you should try to ensure you will be able to pay off the entire debt within this honeymoon period.

                  Consolidating debt into your home loan

                  Another popular method of debt consolidation is rolling all your debts into your mortgage. Many homeowners refinance their home loans into a bigger loan or apply to increase their existing loan, then use this to consolidate their debts. In the same way as a normal debt consolidation loan, you merge all of your debt obligations into extra payments on your home loan.

                  The main advantage of this strategy is that home loans tend to have far lower interest rates than personal loans and credit cards. The disadvantage is that home loans also have far longer terms, typically between 20 and 30 years. Stretching out short term credit card and personal loan debts into such a long loan term means you may end up paying thousands more in interest and fees over the life of the loan.

                  If neither of these methods appeal to you and you would rather tackle your debt without consolidating it, there are some other debt reduction strategies such as the ‘snowball strategy’ or the 'avalanche strategy'.

                  Savings.com.au’s two cents

                  Debt consolidation loans can make managing your debts much simpler, as there’s only one loan repayment to worry about, instead of juggling multiple loan repayments across different debts. If your debt consolidated loan has lower interest rates than the loans you have consolidated, you can also save money on interest. However, as with any loan, you should work out your payments over the full loan term before making a decision, as you may end up paying more interest over a longer loan term.

                  If you can’t see a debt consolidation loan, or any of the other options discussed above working, don’t be afraid to reach out to your current lender and ask them what financial hardship options they offer. DO NOT take out any more debt to try and manage your current debt. Payday loans and credit cards can seem like a ‘stop gap solution’ but taking out even more debt to manage your current debt will only lead you into a debt spiral - it’s a recipe for disaster.

                  Once you have worked your way out of debt, it’s extremely important to sit down and analyse what led you into that debt in the first place so you don’t fall into the same situation again. Create a budget and consider cutting up your credit cards so that you’re not tempted to pay for future expenses using your card. If you’re the type of person who has trouble controlling their impulse spending, cutting up your cards is probably a good idea.

                  Frequently Asked Questions

                  If you have a bad credit history, you may find it more difficult to get approval from a lender for a debt consolidation loan. However, there are some lenders out there who may approve debt consolidation loans for people with bad credit. However, you may have to pay a higher interest rate than borrowers with good credit scores, which could actually end up being more expensive.

                  If you’re really struggling to make your debt repayments, there are plenty of resources available to help you out:

                  Your credit provider

                  Ask your lender what financial hardship options they have, such as a payment plan or the option to change the condition of your repayments to make them easier for you to keep up with. Lenders have hardship departments to help you manage your loan repayments so don’t be afraid to reach out.

                  National Debt Helpline

                  The National Debt Helpline is a not-for-profit service that offers free financial counselling to help you get back on track if you’re deep in debt. The financial counsellors can help you by assessing your financial situation, give advice on how to deal with your lender, and can help you work out a realistic payment plan for your debts. You can reach out to the National Debt Helpline on on 1800 007 007 or online on weekdays from 9:30am to 4:30pm.

                  Lifeline

                  Being in financial difficulty can also have an impact on your mental health. If you’re really struggling and need someone to talk to, you can reach out to Lifeline on 13 11 14 over the phone or online at any time of the day or night.

                  p>As with any other type of loan, a debt consolidation loan should only negatively impact your credit score if you fail to make the repayments on time. If you’re on time with repayments, a debt consolidation loan shouldn’t have a negative impact on your credit.

                  When you apply for a debt consolidation loan, it will appear on your credit report as a hard inquiry. Too many hard inquiries (too many applications for loans) will negatively impact your credit report which is why it’s important not to apply for too many loans at once.

                  Generally speaking though, demonstrating that you can consistently meet loan repayments over a period of time can help establish a positive repayment history which can actually help your credit score. This is because many banks in Australia are now required to use comprehensive credit reporting (CCR) which gives lenders a more complete picture of a borrower’s abilities by noting their good behaviours (such as making regular debt repayments) on their credit report.