Australian Debt Consolidation Calculator

Last updated: May 2026. Reflects current Australian metrics.

Stop paying 20% interest on credit cards. See exactly how much your monthly repayments will drop by rolling multiple debts into a single, lower-rate consolidation loan.

1. Your Current Debts

Credit Card 1
$
Personal Loan / Store Card
$
Car Loan / Other
$

2. New Consolidation Loan

%

New Monthly Repayment

One simple payment for all debts

$0
Current Monthly Outgoings $0
Monthly Cash Flow Saved $0

Extra money in your pocket each month.

Total Cost Comparison

Total Debt Consolidated $0
Lifetime Interest SAVED $0

How Debt Consolidation Works in Australia

Debt consolidation is the process of taking out one large, low-interest personal loan to completely pay off several smaller, high-interest debts (like credit cards, store cards, and car loans). By doing this, you combine multiple confusing repayments into one single, manageable monthly payment.

The Credit Card Trap

Australian credit cards routinely charge interest rates of 19.99% to 22.99% p.a. If you are only paying the minimum monthly repayment on a large credit card balance, you will be trapped in debt for decades. Most of your minimum payment is entirely eaten up by interest charges, barely touching the principal amount.

The Consolidation Advantage

Because personal loans offer much lower interest rates (often between 8% and 13% depending on your credit score), consolidating immediately stops the rapid bleeding of interest. Furthermore, personal loans have a fixed end date (e.g., 5 years). This forces you to pay down the principal steadily, guaranteeing that you will be completely debt-free at the end of the term.

The Warning: Don't Stretch the Term Too Far

A trap many Australians fall into is consolidating short-term debt over a very long period (like 7 years). While stretching the term drastically lowers your monthly repayment, it keeps you in debt longer. If the term is too long, you might actually end up paying more total interest over the 7 years than if you had aggressively paid off the credit cards in 2 years. Our calculator checks this for you.

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Read about personal loan consumer protections at ASIC MoneySmart.

10 Frequently Asked Questions

1. What is debt consolidation?
Debt consolidation involves taking out one new personal loan to pay off multiple existing debts, ideally at a lower overall interest rate.
2. Secured vs Unsecured personal loans?
Secured loans require an asset (like a car) as collateral and have lower rates. Unsecured loans do not require collateral but cost more.
3. Does applying affect my credit score?
Yes, submitting an application leaves a "hard inquiry" on your credit file, which can temporarily lower your score.
4. Can I pay off my personal loan early?
Variable rate personal loans usually allow unlimited extra repayments. Fixed rate loans may charge break fees.
5. What is a good credit score in Australia?
According to Equifax, a score between 622-725 is Good, 726-832 is Very Good, and 833-1200 is Excellent.
6. What are establishment fees?
An upfront fee charged by the lender to process and set up the loan. It is usually added to the loan amount.
7. How does the comparison rate help?
It merges the interest rate and fees into a single figure, making it easier to compare the true cost of different loans.
8. What is the maximum I can borrow?
Most Australian unsecured personal loans max out between $50,000 and $75,000, depending on your income.
9. Can a personal loan be used for anything?
Mostly yes (weddings, holidays, medical), but lenders generally restrict using personal loans for business purposes.
10. What happens if I miss a payment?
You will incur late fees and it will be recorded on your Comprehensive Credit Reporting (CCR) file.