We Australians love our credit, which is why many of us are financed to the hilt with credit cards, car loans, personal loans, payday loans and others that typically have high interest rates.

That’s why it makes sense to consolidate your debts into one low interest loan – they’re;

  • Easier to track
  • Easier to budget
  • Less paperwork
  • Just 1 monthly repayment to 1 lender

If you can resist the temptation of taking on more debt, it’s a great option for getting your debt under control.

The trick to consolidating your debt effectively is to structure it in the right way, which isn’t a straight forward matter – there are a lot of possible debt consolidation options and configurations. It’s also important to weigh up the potential benefits vs the costs, such as;

  • Orientation fees
  • Exit fees from old loans
  • Balance transfer fees
  • Government fees (if you’re planning on using your home loan to consolidate your debts)

Fortunately, with LFG Loans by your side, you don’t have to go through all the details or become a debt consolidation expert – we’ve helped hundreds of people throughout Perth & WA just like you consolidate their debts, and we can do the same for you.

To find out if you can qualify for a debt consolidation loan, request a call-back at a time that suits you. We’ll find you a solution that will simplify and reduce your repayments, helping you pay down your debts faster and save you thousands!

Couple meeting with financial adviser to discuss debt consolidation options.

Further Info on Debt Consolidation

Unsecured vs Secured

While it is possible to get an unsecured debt consolidation loan, you’ll most likely be given less favourable terms, such as a higher interest rate, or you’ll need a higher credit score. When possible, it’s usually better to opt for a secured debt consolidation option.

Consolidating Debt With Bad Credit

Just because you have bad credit doesn’t mean that you can’t consolidate your debts. Although debt consolidation loans for people with bad credit typically come with higher interest rates, you still may be able to reduce what you’re currently paying, it’s just a matter of whipping out the calculator and working through the numbers to see if it makes financial sense. You may also consider a Part 9 Debt Agreement. Part 9 Debt Agreements aren’t to be taken lightly, as they are a form of bankruptcy and stay on your record for 5 years (thus making it very difficult if you want to borrow money within that time), but if you’re really struggling to make payments then it might be the best option for you.

Debt Consolidation Loan Types

You can consolidate debt with;

  • A personal loan
  • A balance transfer from 1 or more credit cards to another credit card with a low APR
  • Using your home equity and rolling your debts into your mortgage repayments

Which type of finance you use is very much dependent on your debt structure, the amount of money you currently owe, existing assets for use as collateral (such as a house or vehicle) and your ability to meet repayments. Reviewing your situation with an expert is always advised.

To find out if you can qualify for a debt consolidation loan, request a call-back at a time that suits you.


What’s the difference between debt consolidation, debt management and debt settlement?

  • Debt Consolidation – your “first line defence” against escalating debt, rolling everything into one loan.
  • Debt Management – simply a plan to tackle you debt, which may include debt consolidation as a strategy for doing so. There are companies that specialise in debt management, or you can do this yourself.
  • Debt Settlement – this is a last resort for those whose debt has gotten out of hand, and may involve bankruptcy or arranging an agreement with the lender, both of which have big impacts on your credit score.

What impact does debt consolidation have on my credit score?

It depends on what kind of debt you’re wanting to consolidate, how many credit enquiries you’ve recently made (too many is a red flag), and how much debt you have. It’s best to bring up this question with an expert, who can review your specific circumstances and advise on the best way forward.

Do I need to change my spending habits with a debt consolidation loan?

No, there are no budgetary restrictions put in place when you take out a normal debt consolidation loan.

To find out if you can qualify for a debt consolidation loan, request a call-back at a time that suits you.