When consolidating debt saves money, and when it doesn't
One repayment instead of four sounds like progress. Whether it actually costs less depends on the rate, the fees and, above all, the term.
ReadDebt advice & consolidation
Get on top of
what you owe.
High-interest loans, credit cards, or tax owed to the ATO. We look at everything you owe and work out a way through it, ideally long before bankruptcy is on the table.
What we cover
Where it
usually starts.
- Several high-interest debts: credit cards, personal and car loans, buy now pay later
- Tax owed to the ATO, personal or business
- Repayments that no longer fit the budget
- Business debts squeezing cash flow
- Creditors or the ATO starting recovery action
- Worry that bankruptcy is the only option left
The options
What we can
arrange.
- Consolidating into one loan
- Several debts replaced by one loan with one repayment, ideally at a lower rate, with the total cost over the full term shown up front.
- Refinancing against property
- Using equity in property you own to clear higher-interest debt. It can lower repayments, but it turns unsecured debt into debt secured against your property.
- Refinancing ATO debt
- Replacing a tax debt with a business loan or a loan against property, so interest charges stop compounding and there's one structured repayment.
- Restructuring business debt
- Bringing equipment, overdraft and short-term business debts into a structure the cash flow can carry.
- Options before bankruptcy
- Where refinancing won't fix it, we'll say so and point you to the right help: hardship arrangements, a financial counsellor, or the formal options administered by AFSA.
How it works
Three steps,
in plain terms.
See it all in one place
Every debt, its interest rate and what it costs you each month, side by side.
Work out the options
One lower-rate loan in place of several, refinancing against property you own, or restructuring business and tax debt. We show what each costs over its full term, not just per month.
Put it in place
Where a consolidation or refinance makes sense, we arrange it with the lender and see it through to settlement. Where it doesn't, we'll say so.
Consolidating can cost more overall if it stretches the loan over a longer term. You'll see the total cost before you decide.
Consolidation calculator
Would consolidating
save you money?
Add what you owe and what you pay now, then the loan you're considering. You'll see the monthly difference and the total cost both ways.
You owe
—
| Measure | Now | Consolidated |
|---|---|---|
| Monthly repayments | — | — |
| Interest and fees | — | — |
| Debt-free in | — | — |
An estimate only. It assumes rates and repayments stay the same and that every repayment is monthly. Credit card minimum repayments usually fall as the balance falls, so paying only the minimum can take longer than shown. It doesn't include break costs or fees on your current debts.
Tax debt
Owing
the ATO.
Tax debt grows once interest charges start, and an ATO balance that isn't current can hold up other finance until it's dealt with.
Depending on your position, it may be possible to refinance it, through a business loan or by borrowing against property you own, and replace it with one structured repayment. The sooner it's looked at, the more options there are.
Before it gets that far
Bankruptcy isn't
the first option.
Bankruptcy stays on your credit record for years, and while you're bankrupt you can't run a company. If you're falling behind, there are often options worth looking at first.
We'll go through yours honestly, including when consolidating won't help.
Free, independent financial counselling is also available through the National Debt Helpline on 1800 007 007.
Worth knowing
The facts,
in brief.
General information, current as at October 2026. Check the ATO and AFSA websites for the latest rules.
- Hardship
- Under the National Credit Code you can ask a lender to change your repayments because of hardship, and it generally has to respond within 21 days
- ATO payment plans
- Many people can set up a plan online for tax debts of $200,000 or less; interest keeps accruing while it runs
- ATO interest
- General interest charge incurred from 1 July 2025 is no longer tax-deductible
- Bankruptcy
- Generally lasts three years and one day, stays on your credit report for at least five years, and your name stays on the public insolvency register permanently
- Free help
- Independent financial counselling through the National Debt Helpline on 1800 007 007
Further reading
Enquire
Talk it through
in confidence.
Tell us roughly what you owe and to whom. We'll come back with a straight read on the options.
Sent
Your enquiry is with us.
Expect a reply within one business day. If it's time-critical, call (03) 9988 1452.