If you're juggling several debts and searching for "debt consolidation," you're really after one thing: a simpler, more affordable way to deal with what you owe. Here's an honest rundown so you can work out what actually fits.
Debt consolidation usually means taking out one new loan to pay off several existing debts, so you're left with a single repayment instead of many. Done well, it can lower your interest rate and simplify your life. Done poorly, it can stretch the debt out longer, cost more overall, or put your home at risk if the new loan is secured.
Consolidation tends to suit people who are still keeping up with repayments and have a reasonable credit history — combining a few higher-interest debts into one lower-rate loan. If that's you, a mortgage broker or lender is the right person to talk to.
If you're already behind, getting collection calls, or wouldn't qualify for a low rate, a consolidation loan often isn't realistic or wise. In that case, negotiating with your existing creditors can achieve what people hoped consolidation would do — reduced repayments, paused interest, and less pressure — without taking on a new loan. That's the service we provide. There's also free financial counselling available to everyone through the National Debt Helpline (1800 007 007).
It depends. If you can qualify for a genuinely lower rate and won't just extend the debt, it can help. If you're already behind, negotiating your existing debts is often the more realistic route.
Applying for new credit can have an effect, and it depends on your circumstances. This is one reason it's worth understanding all your options before applying for anything.
That's common when you're behind. Negotiating with your current creditors is usually the better path, and it's exactly what we help with.
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Wherever you're starting from, we're here to help you move from overwhelmed to back in control — and toward the brighter, freer future you deserve.
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