​Is a debt consolidation loan right for you?

What’s a debt consolidation loan?

A debt consolidation loan is a way to combine all your debts – credit card, personal loans, store card etc. – into one loan so you’ll be making repayments in one place.

It means that you can take a breath and take back some control. It also means no multiple annual fees, and one regular repayment, with one interest rate.

Interested to know what it could look like for you? A debt consolidation calculator is a fantastic tool that can show you how much your minimum repayments – and monthly interest – can change.

Is a debt consolidation loan right for you

Benefits of debt consolidation

Having one debt consolidation loan usually outweighs the benefits of having a heap of little debts.

  • One loan’s much easier to manage than multiple loans or cards across multiple providers – just one recurring repayment, with a single interest rate.

  • One loan means setting up a repayment plan is easy. You’ll have greater control of your budget, and you’ll have a better idea of when you’ll be debt free.

  • Having one, easy-to-manage debt is a good way to improve your credit rating.

  • It can save you money, either by having less interest or fewer fees to pay (or both).1

Things to consider

While there are several benefits to consolidating your debt, there’s a few things that you should keep in mind.

  • If you switch to a loan with a longer term, even if the interest rate is lower, you may end up paying more in interest and fees.

  • Paying off your debt quickly is important but having a budget you can manage and stick to is as well.

  • Consider having your repayments due right after your pay day to help manage your budget and give you peace of mind.

How do I consolidate my debts?

While it’s a straightforward process, you should do some homework before you apply.

  1. Note down the amount owed, current repayment, and repayment frequency of each debt.

  2. Use this debt consolidation calculator to see how much your new loan repayment may change for different loan terms and repayment periods.

  3. Consider taking out a new personal loan to combine the debt you currently have.

  4. Once you’ve consolidated your debts, this is the time to review your finances and get on top of them.

Feel free to contact us if you have any questions.

1 For the loan purpose of debt consolidation or refinance, to ensure this product meets your needs and objectives, please visit your nearest NAB branch if you intend to use the funds:

  • to free up some cash by reducing the amount of regular debt repayments

  • to take advantage of a good deal with our lower rate and/or fees.

Source: NAB

Reproduced with permission of National Australia Bank (‘NAB’). This article was originally published at https://www.nab.com.au/personal/life-moments/manage-money/manage-debt/consolidation

National Australia Bank Limited. ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. The information contained in this article is intended to be of a general nature only. Any advice contained in this article has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this website, NAB recommends that you consider whether it is appropriate for your circumstances.

© 2023 National Australia Bank Limited (“”NAB””). All rights reserved.


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Authorised Representative 298494
Interprac Financial Planning Pty Ltd 

Darryl Jopling

Senior Adviser

I have worked in the financial services industry since 1982 and as a Financial Adviser since 1999.

I have worked for large Financial Planning businesses, Membership based organisations and looked after the financial planning needs of clients within an Accounting Practice before starting my own business.

I am married, have 4 older children and a grandson and I am keen golfer with mixed results like many .

I have been through many of the strategies I talk with clients about myself and with my family.

I have been through the journey of seeing my parents move into Aged care and negotiated the difficulties and pitfalls of understanding the system for them and this gives me an excellent insight into what is required to assist families at this difficult time.

In a previous roll I used to run retirement seminars looking at Centrelink and Retirement Incomes and how to make these work for you. I have helped many of my clients with Aged Care advice when their parents needed to move into Nursing Homes. For many clients I assist them with superannuation, building wealth and protecting their loved ones with insurance.

I am supported by his, Licensee, Interprac Financial Planning’s in-house resources and ongoing technical, systems and training.

I am committed to understanding your needs and identifying strategies and products to help you achieve your goals.

My guiding principle as an Adviser is to design plans which help to provide my clients with clarity of purpose and the opportunity to build a solid financial foundation.
I will take the time to listen, explain things clearly and keep you informed throughout the advice process.

My experience is complemented by professional qualifications including:

  • Certified Financial PlannerTM Professional
  • Diploma of Financial Planning

At Choice Financial Advice we work with you along the way on life’s journey.

Whether you are getting married, starting a family, embarking on the trip of a lifetime, planning to enjoy your years after work or assisting elderly parents with Aged Care and Nursing Home placements, we can help.