Debt consolidation

Are you struggling to manage multiple debts? Our debt consolidation services help Australians reduce financial stress by combining debts into one manageable payment.

Why Consolidate Debt?

  • Reduce debt faster
  • Easier repayment plans
  • Lower interest rates
  • Get creditors off your back.
Want to get out of debt? We can help!
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Change your Life with Debt Consolidation
How Debt Consolidation Works

Live your life free from money worries

  • Initial 10 min chat
  • Private & confidential
  • Obligation-free
Select a callback time

For over 25 years, MyBudget has helped 130,000+ Australians fast track their financial goals by reducing their debt and building savings.

For over 25 years, MyBudget has helped 130,000+ Australians reduce debt and grow savings.

On average, families save $3,500 for holidays each year with MyBudget.

We offer a range of debt consolidation solutions

  • Get a debt strategy tailored just for you
  • Whether it’s credit card debt, personal loans, or medical bills, we consolidate them into one payment to help you save money
  • Paying off debt & saving money is easier with the support of our caring money experts and our automated money management system
  • Our money experts do all the work that will provide you with quick debt relief, including talking with your creditors.
debt consolidation
Leah | MyBudget team member

How MyBudget debt consolidation services change lives

By combining multiple debts into a single, manageable repayment plan, MyBudget empowers individuals and families to break free from financial stress and start building a brighter future.

Debt can be overwhelming, and for many, managing multiple loans and credit cards feels like an endless cycle of repayments and mounting interest. MyBudget’s debt consolidation services have proven to be a lifeline for clients looking to regain financial control and achieve lasting stability.

A clear case for debt consolidation

Sam and Leanne’s MyBudget client case study highlights the power of effective debt consolidation. Like many households, they found themselves juggling various debts—a home loan, credit card, and personal line of credit—while trying to make ends meet. Their combined debt repayments amounted to $2,520 per month, including mortgage, high-interest credit card and personal loan. Despite their best efforts, the couple was frustrated by how little progress they were making.
Breakdown of debts:
  • Home loan: $400,000 at 4.5% p.a. ($2,200 monthly repayment)
  • Credit card: $12,000 at 18.5% p.a. ($185 monthly repayment)
  • Personal line of credit: $8,000 at 19.95% p.a. ($135 monthly repayment)

Consolidate debts and save money

Determined to improve their situation, Sam and Leanne decided to consolidate their debts. After preparing a budget and working with their bank, they secured a debt consolidation loan at 4.5% p.a.—the same rate as their original home loan. This new loan combined their outstanding debts into a single balance of $420,000. By refinancing, they reduced their monthly repayment to $2,345, saving $175 each month. Not only did this relieve their financial stress, but it also eliminated thousands of dollars in future interest payments.

Is debt consolidation always this straightforward?

While Sam and Leanne’s debt consolidation journey was seamless, it’s important to note that not all cases are as simple. Debt consolidation can be a powerful tool, but it’s not a one-size-fits-all solution. Many factors—such as credit history, income stability, and the root cause of debt stress—must be considered to ensure long-term success.

Take Amy’s case, for example. Amy struggled with overspending, which led to significant credit card debt. While a consolidation loan temporarily eased her financial burden, it didn’t address her spending habits. Only through MyBudget’s personalised budgeting services did Amy learn to live within her means and avoid falling back into debt.

  • Credit Card 1: $3,000 with an 18% interest rate
  • Credit Card 2: $4,000 with a 20% interest rate
  • Personal Loan: $7,000 with a 15% interest rate

The benefits of debt consolidation with MyBudget

Debt consolidation offers several key advantages:
  1. Simplified Repayments: Managing one loan instead of multiple debts makes budgeting easier.
  2. Lower Interest Rates: Consolidating high-interest debts into a loan with a lower rate saves money.
  3. Reduced Financial Stress: A clear plan helps clients feel in control of their finances.
  4. Faster Debt Repayment: By minimising interest, clients can pay off their debts sooner.

Why choose MyBudget for debt consolidation?

MyBudget goes beyond debt consolidation by providing tailored financial solutions that address the root causes of debt. Their team offers non-judgmental support and expert guidance to help clients create realistic budgets, manage spending, and achieve their financial goals.

As one client said, “MyBudget has been the best decision we’ve made—it’s literally changed our lives. The weight’s lifted off your shoulders, you’re not worrying about it anymore. Let them worry about it.”

If you’re ready to break free from the cycle of debt, explore how MyBudget’s debt consolidation services can transform your financial future. With a clear plan and expert support, you can achieve the peace of mind and stability you deserve.

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Get started
4 debt busting strategies

Live your life free from money worries

  • Initial 10 min chat
  • Private & confidential
  • Obligation-free

Your MyBudget journey begins with an initial obligation-free conversation with one of our money experts. They will chat to you about your financial position and gain an understanding of the financial goals you want to achieve.

Select a callback time

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Tammy Barton | Founder and Director

The MyBudget difference

MyBudget has helped over 130,000 Australians transform their money and their lives. We can help you too.
  • We start by getting a full understanding of your finances
  • We then explore all of your options, including debt consolidation, to determine what is going to be the right solution for you
  • You will then receive a FREE customised budget plan that gives you a full picture of how long it will take to get out of debt and improve your financial position
  • We take away the stress by talking with your creditors on your behalf and working out more affordable payment terms.
A quick 10-minute initial chat is all it takes.

Understanding debt consolidation to make the right choice

Managing multiple debts can be overwhelming and complicated. Debt consolidation simplifies your financial situation by combining all your existing debts into a single loan, giving you greater control and clarity over your finances.

What is debt consolidation?

Debt consolidation involves taking out a new loan to pay off multiple existing debts. Instead of managing several repayments with varying interest rates and due dates, you consolidate them into one loan with a single repayment schedule. This approach provides peace of mind by offering predictable repayments and a clear path to becoming debt-free.

How does debt consolidation work?

Here’s an example of how debt consolidation might look in practice:

Imagine you have the following debts:

  • Credit Card 1: $3,000 with an 18% interest rate
  • Credit Card 2: $4,000 with a 20% interest rate
  • Personal Loan: $7,000 with a 15% interest rate
Each debt has a different repayment amount, interest rate, and due date, making it challenging to manage your finances effectively. By consolidating these debts into a single personal loan, you can streamline your repayments. For instance, if you secure a personal loan of $14,000 at an interest rate of 10%, you’ll replace multiple payments with one, likely at a lower interest rate.

Using a personal loan repayment calculator, you can estimate your monthly payments and plan your budget accordingly. With a single repayment schedule, you’ll know exactly how much to pay and when, giving you greater control over your cash flow.

Benefits of debt consolidation in general

Debt consolidation offers several key advantages:
  • Simplified Repayments: Managing one loan instead of several makes your financial obligations easier to track.
  • Lower Interest Rates: By securing a loan with a lower interest rate than your current debts, you can save money over time.
  • Clear Timeline: one loan, one payment schedule and end date for all your debts.
  • Improved Cash Flow: Consolidating your debts helps you better manage your budget, freeing up money for other priorities.

Is it right for you? Why choose debt consolidation?

Debt consolidation is ideal for individuals looking to streamline their financial responsibilities and reduce the stress of managing multiple debts. It’s particularly beneficial if:
  • You have multiple high-interest debts.
  • You’re struggling to keep track of different repayment dates.
  • You want to save on interest and pay off your debt faster.

Take control of your financial future

With debt consolidation, you can simplify your finances and regain control of your budget. Whether you’re dealing with credit card debt, personal loans, or other financial obligations, consolidating your debts into one manageable loan is a practical step toward financial freedom.

Start your journey today by exploring debt consolidation options that suit your needs and using a repayment calculator to estimate your payments. Take the first step toward a clearer, stress-free financial future.

Read more...
Get started
4 debt busting strategies

Live your life free from money worries

  • Initial 10 min chat
  • Private & confidential
  • Obligation-free

Your MyBudget journey begins with an initial obligation-free conversation with one of our money experts. They will chat to you about your financial position and gain an understanding of the financial goals you want to achieve.

Select a callback time

Alyssa & Pete conquered financial stress

“It’s a great feeling to know when you get out of bed in the morning, that you’re actually going to achieve something,” says Pete “In just three years, we’ve paid off nearly all of our debt,” adds Alyssa.
“We figured the harder we worked the better we would be. But we didn’t have any oversight or control of what was going on with our finances…We didn’t know where to start. And that changed when we spoke to MyBudget.”

“The money that we earn is our money now. And we can put that money that we were paying off credit cards and loans to something more interesting like holidays and things for the family…”

Alyssa & PeteClients since 2017

Don’t just take our word for it

We’re often featured in many trusted sources

We were in some serious debt and getting nowhere fast, so we decided to pick up the phone and call MyBudget. We went over everything in fine detail and a budget was created that was fair and manageable.

They took our goals into account, helped us set up a realistic savings goal and a plan to manage debt. So far we are extremely happy with the services offered. If you feel like you’re sinking I would give MyBudget a call.

DaleClient since 2023
Great support ongoing. Sorted many bills and debts. Small fee for peace of mind and knowing what financial position you’ll be in a twelve month outlook. Able to prioritise what gets paid and when.

BeauMyBudget client
Have been with MyBudget for several years. We have paid off debts, created savings and purchased a home. We have also had numerous great holidays and a quality of life that wouldn’t have happened without MyBudget.

AliMyBudget client

Debt Consolidation FAQs

What is debt consolidation?

Debt consolidation combines multiple existing debts into a single new loan. The aim is to reduce your repayments by paying out your existing debts and rolling their balances into a single, larger loan with an interest rate and repayment that is lower than the sum of the previous, separate loans.

Who is debt consolidation for?

It’s ideal for those with multiple high-interest debts, like credit cards or personal loans.

Will consolidating debt affect my credit score?

It can have a positive impact if you make regular payments, but missed payments could hurt your credit.

What types of debt can be consolidated?

Personal loans, credit cards, and other unsecured debts.

Pros & cons of debt consolidation

Pros

Debt consolidation simplifies your finances by combining multiple debts into a single loan, which often results in lower interest rates and monthly payments, helping to reduce financial stress.

Cons

While debt consolidation can reduce immediate payments, it may extend the loan term, leading to more interest over time. There can also be upfront fees, and it requires disciplined financial management to avoid accumulating new debt.

What debt services and solutions does MyBudget offer?

For those needing help with debt relief, we can look to see if we can speak with your creditors, negotiate payments and develop a tailored debt strategy. This may include debt consolidation, mortgage refinancing, a Part IX Debt Agreement, bankruptcy or affordably paying your way out of debt.

Does MyBudget provide financial advice?

MyBudget is a budgeting, debt solutions, and money management service. We provide a range of structure and support services associated with managing your personal expenses. While we do hold an Australian Financial Services Licence (AFSL) and Australian Credit Licence (ACL), we are not financial advisors and offer general financial advice only. For personal financial advice or financial product recommendations, we recommend you seek the services of a licensed financial advisor.

What if my expenses are higher than my income?

This is a very common scenario. We may negotiate with your creditors to obtain the lowest monthly payment obligation that fits within your personal or household budget. We also offer suggestions on how you can tailor your expenses to reflect your income.

What if I get an unexpected bill?

If an emergency or unexpected expense should arise, all you need to do is contact MyBudget. We’ll work with you to find a solution. Ideally, unexpected expenses can be covered with savings set up for this purpose, and we’ll assist you to develop that buffer. Alternatively, we can look to see if we can rework and adjust your budget to accommodate payment of the bill. We’re here to help.

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