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Australia's Money Matchmaker matching you with your best loans across multiple lenders
Take the chance out of loan shopping, review loan offers from 11 lenders and get the best loan.

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Personal loan rates from 11 lenders in 60 seconds with Money Matchmaker
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Rate comparison websites show you a low rate that hardly anyone qualifies for. We show real loan rates based on matching you to lender rules.

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Googling options and applying to each lender wastes time and can affect your credit score. Using rate comparison sites often leads to annoying sales calls. We show you options in 60 seconds with no follow up calls.

Bad Credit Debt Consolidation Loans

Written by

Shaun McGowan

Debt consolidation loans are a great way to roll all your debts into one to save money and make them easier to repay.

You may be able to get a debt consolidation loan if you have bad credit, but your lenders credit policies will apply - you’ll find non-bank and specialist lenders have more relaxed credit policies and offer a greater chance of approval.

Australia's Money Matchmaker matching you with your best loans across multiple lenders
Before you apply, you should compare fees, interest rates and loan features to find the best loan available and get the most out of your debt consolidation.

Consolidating debt benefits

Consolidating your debts should make them:

  • More manageable
  • Less to repay

Of course, debt consolidation isn’t for everyone.

Credit card consolidation loans
Australia's Money Matchmaker matching you with your best loans across multiple lenders
Debt consolidation is like spring cleaning for your finances, cutting out the waste and making everything tidier. Finance minimalism even!

Compare your best debt consolidation rates and offers


Getting the most out of a debt consolidation loan

Debt can be expensive, and unpaid debts can quickly damage your credit score. To get the most out of your debt consolidation loan, you’ll want to do two things:

  • Find ways to reduce your debts as fast as possible
  • Find ways to prevent any further debt

As debt consolidation rolls all your existing debts into a single loan, paying off all your debts will happen naturally over time.

Consider making extra repayments when you can as it will lower your debts, but crucially improve your credit score, allowing you to potentially refinance your loan at a better rate sooner.

Find a loan that allows you to make early and additional repayments to reduce your debt faster.

You can prevent future debt by creating a realistic budget to make sure that you can make repayments and to track your income and expenditure.

Download our free budget planner here.

Australia's Money Matchmaker matching you with your best loans across multiple lenders
Money Tip: Find a debt consolidation loan with a lower interest than your existing loans and you’ll save money by paying less interest over time.

Comparing debt consolidation loans and lenders

When reviewing your debt consolidation loan offers and rates, use the comparison rate.

The comparison rate expresses the true cost of a loan (Interest plus fees) as a simple percentage.

The four types of fees you may need to consider:

  • Upfront costs - establishment fees and application fees (often negotiable)
  • Ongoing fees - annual fees and monthly fees (avoidable)
  • Late payment fees - charged if you miss a payment (very avoidable!)
  • Extra repayment fees - charged if you make an extra payment (ouch!)

Upfront and Ongoing fees are included in the comparison rate. However, variable fees - such as late-payment fees - are not, so be sure to keep these in mind when comparing deals.

Understand what a comparison rate is showing you

The right debt consolidation loan can save you $1,000s


How lenders assess us

Ultimately a finance company wants to make sure that you have stability. This is often shown by having been at the same address for a sustained period of time, likewise for your job. The longer you have been employed at the some job is generally favourable.

employment history applicant

How lenders view credit history

Obviously, most lenders prefer people who don't have a bad credit history, but rest assured, there are lenders who specifically try to help people who do have an impaired credit history.

credit history applicant
Australia's Money Matchmaker matching you with your best loans across multiple lenders
Money Tip: It may be a good idea to set up your loan repayments so that they fall directly after your payday — that way you’ll always have money in the bank to pay them.
Find and compare personal loan rates with Money Matchmaker

Applying for a bad credit debt consolidation loan

To apply with bad credit, you’ll need to gather all necessary documentation and some additional information for your lender, which may include:

  • Income and employment verification (employment contract, payslips, tax returns).
  • Valid ID such as a passport or Australian drivers licence or passport.
  • Proof of address.
  • Bank statements for up to six months as required.
  • Proof of any other income you have.

The most important aspect here is demonstrating to your lender an ability to repay the loan amount you wish to borrow.

Creating a budget and having a solid plan to repay your debts on time and in full can help improve your chances.

Once you’ve got your documents ready you can apply with most lenders online. Once the loan is approved, you will be given the money and will need to repay your existing debts, or in some instances, the lender will make these payments on your behalf.

Who is eligible?

You can apply for a debt consolidation loan in Australia if you are:

  • Over the age of 18; and
  • An Australian citizen or permanent resident; and
  • Employed or have a regular source of income over $25,000 per year

If you meet the basic eligibility for a debt consolidation loan, you will then need to compare lenders and assess their individual approval criteria.

How to qualify for a loan in Australia

Here are the most popular questions people are asking about debt consolidation loans

How long does it take to get approved?

To get approved, it can take 1-2 days as long as you're able to provide all the information that the lender requests.

Are debt consolidation loans cheaper than credit cards?

In most instances you should be able to find a debt consolidation loan with an interest rate lower than a typical credit card rate.

Meet Money Matchmaker®

"Hey I’m Money Matchmaker®, I have a team of wizards making me super smart. I’ve been loaded up with all the information that lenders use, and when you take my quiz, I use your answers to check against all our lenders at once. I’m harmless, I don’t impact your credit score and I’ll show you the best loan matches I can with no brokers fees or annoying ads"

Money Matchmaker

Meet your potential debt consolidation loan matches

Meet Plenti
  • No Early Repayment Fees
  • No Monthly Fees
  • Get Funds 24 Hours From Approval
Meet OurMoneyMarket
  • No extra repayment or early exit fees
  • Funding approved in 24 hours
  • Up to $75,000 loan amount
Meet Society One
  • No ongoing fees
  • No monthly fees
  • No Deposit Required
Meet Wisr
  • Same day decisioning
  • No admin, early repayment or "risk" fees
  • Support from real people
Meet Fair Go
  • Build your credit score by making timely repayments
  • Once approved, loans are funded in minutes
  • Flexible repayments; weekly, fortnightly, monthly options
Meet Finance One
  • Pay your loan out early with no fees
  • Change payment dates and frequency at any time
  • Make extra repayments at any time
Meet Money3
  • Pay your loan out early with no fees
  • Increase regular payments to suit your situation
  • Make extra repayments at any time
Meet Jacaranda
  • Apply in under 8 minutes
  • Once approved, cash transferred in 60 seconds
  • No early termination fees
Meet Now Finance
  • Get a guaranteed, personalised rate in 2 minutes
  • Apply online in under 10 minutes
  • Weekly and fortnightly repayments
Meet Alex
  • $0 establishment fee
  • $0 ongoing fees, early repayment fees, exit fees
  • Multi Award winning and 100% digital

The right debt consolidation loan can save you $1,000s


About the Author

Shaun McGowan from



Shaun McGowan

Shaun is the founder of and is determined to help people pay as little as possible for financial products. Through education and building world class technology. Previously Shaun co-founded and Lend.

Information about borrowing rates The rate advertised are comparison rates. See below for further information about comparison rates. Using our lender SocietyOne as an example Tier 1 borrowers will receive an interest rate between 5.95% - 10.49% p.a. (comparison rate 5.95% - 12.83% p.a.). Tier 2 borrowers will receive an interest rate between 9.99% -12.19% p.a. (comparison rate 12.05% - 15.03% p.a.). Tier 3 borrowers will receive an interest rate between 11.99% - 15.99% p.a. (comparison rate 14.37% - 18.62% p.a.). Tier 4 borrowers will receive an interest rate between 14.99% - 19.99% p.a. (comparison rate 18.41% - 21.70% p.a.). The maximum annual percentage rate (APR) interest rate is 19.99% p.a. (comparison rate 21.70% p.a.). An establishment fee applies for most borrowers. Personal loan example: for a borrower with excellent credit (Tier 1 borrower), a loan of $10,000 over a 3 year term, with an interest rate of 8.99% p.a. (comparison rate 12.32% p.a.) and a $495 establishment fee, the fortnightly repayment would be $154 and the total cost over the life of the loan (including the establishment fee) would be $12,013. SocietyOne personal loans are available for terms of 2, 3 and 5 years. Minimum loan term repayment period is 2 years, maximum loan term repayment period is 5 years.

*Information about comparison rates Comparison rates are designed to allow borrowers to understand the true cost of a loan by taking into account fees and charges, the loan amount and the term of the loan. The comparison rate is based on an unsecured fixed rate personal loan of $10,000 over 3 years. WARNING: Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.


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Money Pty Ltd (trading as provides information about credit products and is authorised to do so as the holder of Australian Credit Licence 528698. does not compare every Lender in Australia. We are not a broker or credit provider and when we provide information via this website, we are not providing you with a recommendation or suggestion about a particular credit product. When you apply for a credit product via the website, you are not applying with us, you are applying directly with a Lender Partner. Before entering into any credit product from one of our Lender Partners, you should confirm the rates and product information with the Lender. All information on this website is general advice only and does not take into account your objectives, financial situation or needs. You should consider whether this advice is right for you and we encourage you to seek independent financial advice.