How to get on top of your money in this high-priced world: Debt consolidation

Consolidating money
Getty image: piggy bank and money management

A new report by CreditSmart shows that despite the persistent high cost of living, Aussies have been actively looking for better deals, refinancing loans and renegotiating utility expenses over the past six months.

The majority remain confident in their financial situation, but some are clearly not getting ahead of rising prices and subsequent debt.

“The data is showing us that Australians are faring better than expected and are being proactive about taking control of their finances given mounting pressures from high inflation and rising interest rates,” said CreditSmart spokesperson and Australian Retail Credit Association chief, Elsa Markula. 

“As we’re now in the thick of the festive season, it’s great to see one in three people (33 per cent) are shopping around more and comparing prices, and just under half of people (46 per cent) are telling us they can meet their bills and credit commitments without any difficulty.

“Australians are being smart about managing their costs and expenses, but the data is [also] telling us that people still don’t understand the importance of knowing what’s in their credit report. 

“Better understanding of your financial situation by reviewing your credit report means that you can take steps to properly take stock of your situation. Being aware of what is on your report, and how your payment behaviour can make a huge difference to your credit health is so critical to taking control of your situation.”

Time to consider a personal loan?

One way you can get on top of spiralling costs and debt issues is through a personal loan, and more specifically a debt consolidation loan. A debt consolidation loan lets you compile all the debt you have (say a car loan, personal loan and credit card) to make paying it off a lot simpler. 

Briefly, there are three distinct advantages of a debt consolidation loan:

  • You can pay in one regular repayment
  • You can pay less interest on your debt
  • You can pay fewer fees.

To read more on these advantages be sure to check out our guide debt consolidation

Australians are not looking at their credit reports

Before looking into a debt consolidation loan though, review your credit score. While Australians are doing what they can when budgeting, CreditSmart’s research shows many people have never even looked at or accessed their credit reports.

This matters because with your credit score in order, you can secure an even better interest rate on your personal loan. For example, some of the best personal loan rates in the Mozo database right now are for borrowers with excellent credit scores, including Our Money Market’s Low Rate Personal Loan at 6.57% p.a., Plenti’s Fixed Personal Loan (unsecured) at 6.57% and Now Finance’s Secured Personal loan (fixed) at 6.75%. 

If you’re ready to do some more personal loan research, check out our best personal loans hub page that lists a selection of the top loans in the market. If you’re keen on a debt consolidation loan specifically, start by checking out the list below. 

Compare the top debt consolidation loans - last updated 19 April 2024

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

    Compare
    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.55% p.a.to 24.98% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.76% would cost $35,173.52 including fees.

    Compare
    Details
  • Express Personal Loan

    Secured

    interest rate
    comparison rate
    Monthly repayment
    14.95% p.a.to 27.95% p.a.
    29.30% p.a.to 42.8% p.a.based on $10,000
    over 3 years

    Access fast finance on loans from $5,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 24-48 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

    Repayment terms from 2 years to 4 years. Representative example: a 3 year $10,000 loan at 14.95% would cost $14,324.71 including fees.

    Compare
    Details
  • Debt Consolidation Loan

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 19.39% p.a.based on $30,000
    over 5 years

    Competitive fixed rates on loans up to $75,000 depending on your credit score. Zero monthly account keeping fees, no exit fees and no early repayment fees. Make weekly, fortnightly or monthly repayments, over 1 to 7 years managed entirely online, at any time. Fast and easy, 100% online application.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.