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How to use the debt consolidation calculator

To use the debt consolidation calculator, simply enter details about your current debts.

Add all current debts using the different debt categories shown. Fill in as much information as possible for the most accurate result.

Click ‘Calculate’ to see the total amount to pay, total interest, and term length.

It’s a quick way of totalling up all your debts and seeing just how much it’s costing you in interest.

Debt consolidaiton is the most common reason (57%) people look for a personal loan in Australia, with an average total loan amount of $22,573.

How to calculate your debt consolidation loan?

How do bad credit debt consolidation loans work

Once you have used the debt consolidation calculator to tally up the amount of your overall debt, this number may help indicate the loan amount you would need if you decide to consolidate your debts.

A debt consolidation loan is a way of unifying your debts and simplifying your repayments while reducing your interest costs.

Before applying for a personal loan with a lender, you need to have a close look at what the new loan is offering to make sure consolidating your debts will save you time and money.

You can use our personal loan calculator to estimate your repayments and overall costs based on the details of your new loan.

What is debt consolidation?

Debt consolidation is a way of managing multiple forms of debt with various payment schedules, rates, and fees. With debt consolidation, you calculate your total debt and bundle it into a single new loan.

In some cases you can consolidate with an extension of an existing loan term. This can make your regular repayments more manageable but you may end up paying more interest in total.

It’s why using a loan calculator for debt consolidation can be helpful.

Is debt consolidation a good idea?

It’s one thing calculating your existing debt. But when is the right and wrong time to consolidate that debt? Below we’ll look at some of the most common reasons to choose or avoid debt consolidation.

Reasons for debt consolidation
  • You are paying high interest rates on your current debt (e.g. credit card debt)
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  • You struggle to manage multiple repayment schedules
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  • Your credit score has improved since you took out your existing loans (you may be eligible for a lower interest rate now)
Reasons to avoid debt consolidation
  • The new loan will work out more expensive
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  • You have a poor credit rating (applying for a new loan could impact your score)
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  • You you are really struggling with your debt (seeking help before deciding to consolidate may be a smart way to go)

Ready to compare debt consolidation loans?

Get your best offers from multiple lenders. There's no obligation and checking your rates won't impact your credit score.

Personal loan guides & resources

Not sure about the next steps? Our guides and resources can help.

Debt consolidation calculator FAQs

This will depend on the rates and fees you’re paying on your current debt and what you can get with a new debt consolidation loan. It’s worth taking the time to calculate the potential savings.

Particularly if you have credit card debt, it’s often possible to find a personal loan with a lower interest rate.

In some cases debt consolidation can also save people money simply because they avoid paying multiple fees on current debts.

In other cases, the actual saving may not be massive but simplifying your finances by having a single debt repayment instead of several is the real benefit.

Be wary of extending the term of your debt repayments (e.g. by consolidating it into your home loan). This could mean lower regular repayments, but higher overall costs.

Not usually. Provided you meet the lender’s credit criteria, debt consolidation should provide you with a similar or lower rate than comparable unsecured personal loan products.

Similarly if you are consolidating debt with bad credit, the rates are generally similar to those on standard bad credit personal loans.

If you manage your debt consolidation well, it shouldn’t hurt your credit score in the long run.

In fact, it could help you to improve it. As long as you make the repayments on time every time, reduce your total debt, and avoid submitting multiple applications.

Yes, you can consolidate as many debts as you like with a debt consolidation loan, provided you are eligible to borrow enough to cover those debts.

Yes, you can choose bad credit debt consolidation if it suits your financial circumstances.

Be aware that any credit application will impact your credit score, and it’s advisable to repair your credit score if possible before applying to ensure you get the best deal.


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