​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.

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.

Important:

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.”

Praise Baroña

Client Services Officer

Praise Barona is a Customer Service Officer at Investlink Group and a Bachelor of Science in Accountancy graduate. She brings a well-rounded background in financial planning support and accounting, with experience as a Financial Planning Assistant and as an intern in a CPA firm.

Through these roles, she has developed strong attention to detail, organisation, and a thoughtful approach to supporting both clients and advisers.

Praise is passionate about delivering a positive and reliable client experience, and is committed to continuing her growth in the financial planning industry.

Lindsay Austria

Marketing Officer

Lindsay Austria is a Marketing Officer at Investlink Group and is currently completing a Bachelor of Commerce (International Business and Marketing) at the University of Sydney.

She brings experience in digital marketing, content creation, and community engagement.

With a passion for storytelling and cross-cultural connection, Lindsay focuses on creating meaningful content that resonates with diverse audiences and builds genuine engagement.

Mary Yousif

Administrative Officer

Mary is a Financial Planning Administrative Officer at Investlink Group, holding a Bachelor of Business with a major in Finance and Management.

She brings a strong client-focused approach, supported by her experience as a Senior Receptionist and Assistant Manager, where she developed skills in communication, problem-solving, and team coordination. Mary is committed to building her expertise in the financial planning sector and contributing to a seamless and supportive client experience.

Sara Jahanbin

Advice Associate and Professional Year Candidate

Sara is an Advice Associate at Investlink Group, with over seven years of experience in the tax and financial planning industry. With a strong background in tax strategy, she brings valuable insight into structuring financial advice that aligns with each client’s broader financial goals.
 
Sara is currently completing her Graduate Diploma of Financial Planning with Kaplan Professional and is working towards becoming a licensed financial adviser. She is dedicated to providing holistic, client-centered support and manages the advice process end to end, ensuring clients receive clear, strategic, and tailored outcomes.

Priyanka Kumar

Financial Adviser

Priyanka is a financial adviser with experience across various areas of advice including superannuation and retirement planning, wealth creation and personal insurance. Her education includes a Bachelor of Applied Finance from Macquarie University and a Graduate Diploma of Financial Planning from Kaplan.

Priyanka enjoys strategising and working towards creating valuable solutions for our clients. She loves meeting our clients, both existing and new, and getting to know them on a personal level and hearing the unique stories they have to share.

Ashish Thadani

Director & Financial Adviser

Financial Adviser / Director of Investlink Group & Excalibur Wealth Group

Ashish has over 20 years of experience as a financial adviser and is passionate about educating his clients on their finances and the financial strategies that he recommends to them.

With a “client comes first” philosophy for the business, Ashish operates with patience, transparency and with the best interests of his clients always in mind.

Authorised Representative No. 290396

Investlink Group Pty Ltd Corporate Authorised Representative No. 442305