Will consolidating always save me money?

Only if the new rate, term, and any fees add up to less than what you'd otherwise pay. A longer term can lower your monthly repayment while increasing the total interest — check both numbers, not just the monthly saving.

What debts are typically included?

Credit cards, personal loans, store cards, and buy-now-pay-later balances are common candidates. Secured debts like a mortgage or car loan are usually kept separate since they carry lower rates already.

What's the biggest risk with consolidation?

Paying off credit cards but not closing or reducing their limits, then running the balances back up — leaving you with the consolidation loan repayment plus new card debt on top.

Debt Consolidation Calculator

Compare what you're currently paying across multiple debts to a single consolidated loan repayment.

Total balance across all debts

What you currently pay each month, combined

New consolidated loan rate

% p.a.

New loan term

years

New consolidated repayment$525

Monthly saving: $375
Total interest on new loan: $6,503

This calculator provides estimates only. It is general information, not financial or taxation advice, and doesn't account for your full personal circumstances. Confirm figures with your lender or a licensed adviser before making a decision.

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How this calculator works

Debt consolidation combines multiple debts — credit cards, personal loans, buy-now-pay-later balances — into a single new loan, ideally at a lower interest rate and with one repayment instead of several. It can simplify your finances and lower your rate, but only helps your total cost if the new rate and term actually work out cheaper than what you're paying now.

Enter the combined balance of the debts you'd roll into one loan, what you're currently paying across all of them each month, and the rate and term you've been offered for the new consolidated loan. The calculator shows the new repayment and compares it to what you're paying today.

Worked example: $25,000 spread across a few debts, currently costing $900 a month combined, consolidated into a single loan at 9.5% p.a. over 5 years drops the repayment to $525.05 a month — a saving of $374.95 a month — with $6,502.79 in total interest on the new loan.

Be careful with term length: stretching repayment out over a longer term can lower the monthly amount while costing more in total interest, especially if you were closer to paying off higher-rate debts like credit cards. Consolidation only pays off if you don't run the old cards back up again afterwards.

Frequently asked questions

Will consolidating always save me money?: Only if the new rate, term, and any fees add up to less than what you'd otherwise pay. A longer term can lower your monthly repayment while increasing the total interest — check both numbers, not just the monthly saving.
What debts are typically included?: Credit cards, personal loans, store cards, and buy-now-pay-later balances are common candidates. Secured debts like a mortgage or car loan are usually kept separate since they carry lower rates already.
What's the biggest risk with consolidation?: Paying off credit cards but not closing or reducing their limits, then running the balances back up — leaving you with the consolidation loan repayment plus new card debt on top.