Debt consolidation
Debt consolidation refinances several debts, such as credit cards, car and personal loans, into one loan with a single repayment.
Debt consolidation, explained.
A lower interest rate does not necessarily mean a lower total cost. Rolling a short-term debt into a longer mortgage term can increase the interest paid over its life.
Lenders look at consolidation carefully. Repeated consolidations, or new card balances soon after, are read as a pattern. A separate split repaid over a short term can help limit the interest paid on the consolidated debt.
Tools that use this term.
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The Learn section is general information about lending in Australia. It does not take account of your objectives, financial situation or needs, is not credit assistance, and is not tax, legal or financial advice. Lender policies, government schedules and regulations change; check the current position with the relevant body or with us before relying on it.
