Consolidation Loans

Money in your bank account and ready to use in 60 seconds once approved*

  • Rates from 7.59% (comparison rate 12.24% p.a.)
  • Any credit score
  • 100% Online Application

Creditworld is a credit broker and not a lender. Australian Credit Licence Number 397589.

Easy 100% Online Debt Consolidation Loans for up to $25,000

At Creditworld, we specialise in matching you with the type of loan that best suits your situation. While debt consolidation loans are not for everyone, they can be a great fit for the right borrower, offering a simplified repayment schedule, lower repayments and lower interest costs as well.

Speedy online applications

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Quick outcomes

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Instant cash

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  • $6,000
  • $25,000
  • 0yr
  • 1yr
  • 2yr
  • 3yr
  • 4yr

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Monthly repayments


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Representative interest rate


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Please note:

The interest rate shown might differ to what you are offered, as that will depend on the amount and term along with your personal circumstance and credit rating.

What you’ll get with a Creditworld Personal Loan

  • Easy to apply online – no messy paperwork
  • Borrow from $2,000 – $25,000
  • Panel of lenders to get you approved
  • Cash in as little as 24 hours

“I was really struggling with a large personal debt and a maxed out high interest credit card. Feeling good about my repayments and love the fact that I have only one loan to pay off.”


Brisbane, QLD

“I was really struggling with a large personal debt and a maxed out high interest credit card. Feeling good about my repayments and love the fact that I have only one loan to pay off.”


Brisbane, QLD

What are you planning on using your loan for?

Buying a car

Spread the cost for your car purchase, new or old.

Car Loans

Debt consolidation

Manage all your existing debts with one simple monthly payment.

Debt Consolidation Loans

Personal loan

Get a loan to upgrade your space or finally go on that holiday.

Personal loans

Get your personalised rate

Apply now to find out what loan rate we can offer you.

What is Debt Consolidation?

As the name suggests, debt consolidation is a means of consolidating a number of debts into one loan or payment. On this page, we will focus on debt consolidation loans, however, there are other debt consolidation options we’ll mention – such as balance transfer credit cards – so we can compare how they work, who they work well for, and the pros and cons of each.

Why Consolidate?

When you consolidate your debts, you are basically rolling all your existing debts into one loan. So, instead of having a number of repayments to keep track of, you will have just one repayment. Doing this can help you save on interest, while also allowing you to avoid late fees and any other fees associated with maintaining a number of debts.


Essentially though, debt consolidation is designed to help you get on top of your debt so you can manage it better. This can help to reduce any stress you are experiencing, whether as a result of struggling to manage multiple debts, or the feeling that you are paying out too much.

How Debt Consolidation Works

When it comes to debt consolidation loans, you can typically consolidate any number of different types of debts. This could include personal loans and car loans, credit cards, utility bills and medical costs. While there may be rules that apply in certain circumstances, you will usually find you can consolidate most debts into a debt consolidation loan.


So, how does it work? When consolidating your debts, you have to start by gathering together the details of every debt you want to consolidate. Take note of how much you owe on each debt, how much interest you are paying, and when your repayments are due. It’s also worth looking at any fees you may incur by consolidating, such as breakcost fees on fixed personal loans.


From there, you can compare debt consolidation loans and other debt consolidation options. As you make your choice, consider how much you will be able to borrow, how much you will pay each month in repayments, and how much it will cost overall. Once approved, you can enjoy the following benefits.

  • A Simplified Monthly Payment Schedule
    If you have a number of debts on the go – such as personal loans, car loans and credit cards – it can be hard to keep on top of when each repayment is due. With a debt consolidation loan, you will only need to keep track of one repayment.
  • Lower Interest Costs
    With the right debt consolidation loan, you could end up paying a lower interest rate on your consolidated debt than you were on the total of each individual debt. While it doesn’t always work out this way, this is typically the goal for debt consolidation.
  • More Manageable Repayments
    Whether your debts are made up of loans or credit cards, you will have a certain amount to repay each month. If this amount is more than you can cover, a debt consolidation loan could spread out the overall debt over a longer period of time, making each repayment more manageable.Note, extending the period over which you pay off your debt may result in higher interest costs.
  • Fewer Fees
    Lenders typically charge establishment fees or ongoing fees when offering borrowers credit. By reducing the number of debts in play, you could pay less in fees on your debt consolidation loan. Bear in mind you may need to pay some additional fees as a result of paying off certain debts early (for example, fixed personal loans).
  • Creating An End Goal
    When you have multiple debts – particularly credit cards – it can be all too easy to keep your debts rolling over, with no payoff in sight. With a debt consolidation loan, however, you have a repayment schedule that ensures you pay off a certain amount each month, as well as an end date when your debt will be repaid.

Pros & Cons of Debt Consolidation Loans

A debt consolidation loan is basically a personal loan designed to consolidate debts. Some lenders may market their debt consolidation loans as debt consolidation loans, while others will simply offer personal loans, allowing you to consolidate whatever debts you have into that loan.

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You can consolidate a number of debts into one loan to benefit from having just one repayment instead of many.

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You may be able to reduce costs by consolidating your debts, lowering ongoing fees and interest.

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You can benefit from a set repayment schedule, ensuring you keep chipping away at your debt, instead of simply paying the minimum repayment, as you might with a credit card.

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You know when the debt will be paid off.

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If you opt for a secured debt consolidation loan, you may take advantage of lower rates, while also making it easier to get approved for the loan.

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Debt consolidation loans can be inflexible, tying you to a loan term, with features such as redraw options not always available. This is not the case with every loan though.

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By spreading your debts over a longer period, you may end up paying more in interest.

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You may have to pay fees to your existing lenders to pay off your debt early. You may also pay an establishment fee for the debt consolidation loan.

Debt Consolidation Tips

Ready to consolidate? If you have weighed up your options and know that a debt consolidation loan is your best course of action, here are some tips to get the most out of your situation.

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Create a debt consolidation plan

This plan should outline the solution you are putting into place, including your new payments and how that will affect your budget. Overall, the plan should confirm that the debt consolidation option you have chosen puts you in a better place than you were in previously, either in terms of repayment affordability, interest costs, or both.

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Understand your repayment schedule

You now have one repayment instead of a number of them. Make sure you understand when that repayment is due, and either set up a direct debit or auto payment to ensure you pay it on time.

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Make extra repayments

If your new loan allows you to make extra repayments without penalty, try to do so whenever you can. This should help to reduce the amount of interest you pay on the loan, while also allowing you to pay off your loan sooner.

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Close old accounts

If you have paid off old credit cards, store cards or lines of credit with your debt consolidation loan, you may be tempted to start spending again now those credit limits have been freed up. Consider closing these accounts to avoid the temptation to spend.

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Track your spending

With your budget in place, you should know how much you can afford to spend each month. Track your spending and make sure you stay on track. It can help to track your loan repayment progress if you need motivation not to spend.

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Share your goals

If you need further motivation to stay on track, you may want to share your goals with close friends or family. Not only should this help to keep you honest, it can also give you someone to celebrate with when you hit big milestones.

Top questions people ask us

Can I apply for a debt consolidation loan with bad credit?

When you apply for any kind of loan, the lender will use factors such as your credit, employment and income to determine whether or not to approve your application. Applicants with good credit and a steady income typically find it easier to get approved, but it may still be possible for those with bad credit to get a debt consolidation loan.


If approved, you may find that you pay a higher rate on your loan as a bad credit borrower. This can make repayments higher, while also increasing the cost you pay out in interest. If you have questions about applying for a debt consolidation loan with bad credit, reach out and we will do our best to offer a solution that will work for you.

Can I apply for debt consolidation if I am on Centrelink?

To determine your ability to repay the loan, the lender has to assess your income during the application process. While some lenders only accept income from employment, investments and other similar sources, others may be willing to class Centrelink payments as income as well.

How do I compare debt consolidation options?

As you compare debt consolidation loans, take note of the following factors:


Interest: Find out how much each loan will cost in interest, and compare that to the amount you are currently paying on your existing debts.


Fees: Take into account any establishment fees and ongoing fees. Calculate how much you will pay in fees and charges each month and over the length of the loan to assess affordability and overall cost.


Repayments: Choose a repayment schedule that is affordable. Be aware that stretching the loan to benefit from lower repayments may result in higher interest costs.


Flexibility: Check whether the loan allows you to make extra repayments without penalty. Redraw and early payout without penalty can also be handy.


Suitability: Overall, make sure the loan suits your needs and will put you in a more favourable position than you were in previously.

How can I get approval for a consolidation loan?

To be approved for a debt consolidation loan, you will need to be:


  • At least 18 years old
  • An Australian citizen or permanent resident


To improve your chances of being approved, you should:


  • Be employed and have a steady income
  • Have a good credit rating
  • Have never been bankrupt


Before you apply, Creditworld will provide you with a range of loans that match your needs. Our team is on hand to answer any queries you may have about eligibility before you apply.

* This offer only applies to our personal loan product that is funded through Jacaranda Finance Pty Ltd. Most applicants that are approved by Jacaranda Finance Pty Ltd have their money in their bank account and ready to use within 60 seconds of accepting their digital contract, providing applicant banks with an NPP-enabled financial institution.

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