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What is debt consolidation?

  • Debt consolidation is the process of combining multiple debts into a single loan. For example, taking out a personal loan to close off various credit cards and other loans. This approach is often used to simplify repayments and potentially lower the overall interest rate.

Why choose CommBank?

Personalised rates

Get your personalised rates in minutes without affecting your credit score.

Same day funding

You could receive the funds on the same day you apply (if eligible).^

Easy to manage

See your upcoming repayments and how you're tracking within Australia’s best banking app.* 

CommBank Personal Loans to consolidate your debt

A loan with certainty, a fixed rate and no security required
A loan with flexibility to make unlimited additional repayments at no extra cost

Choose a personal loan that’s right for you

Fixed Rate Loan

Features
  • Fixed interest rate and repayments for the term of the loan
  • Make additional repayments, subject to an early repayment adjustment1
  • Borrow from $4,000 to $50,000 over a term of one to seven years
Rates
  • Interest rates: 7.75% p.a.2 to 19.75% p.a. (comparison rate: 9.15% p.a. to 21.05% p.a.)
  • Representative rate: 15.50%3 p.a. (comparison rate: 16.83% p.a.)
Fees
 
  • $250 establishment fee
  • $15 monthly loan service fee
  • Other fees may apply, e.g. early repayment fee. See more

 

 

Tell me more about Fixed Rate Loans

Variable Rate Loan

Features
  • Flexibility to make extra repayments without a fee
  • Redraw available funds through your redraw facility
  • Borrow from $4,000 to $50,000 over a term of one to seven years
Rates
  • Interest rates: 8.25%2 p.a. to 20.25% p.a. (comparison rate: 9.64% p.a. to 21.55% p.a.)
  • Representative rate: 16.00%3 p.a. (comparison rate: 17.32% p.a.)

Fees

  • $250 establishment fee
  • $15 monthly loan service fee
  • Other fees may apply, e.g. late payment fee. See more

 

 

Tell me more about Variable Rate Loans

Get my rates & apply

Get started

  • Apply: Fill in the online form. We’ll ask you some details and you’ll get a response within 60 seconds after you submit your application
  • Contract: If approved, we’ll send you a contract. Accept the contract if you’re happy with the terms
  • Verify: We may ask you for some additional documents.

To be eligible to apply for a personal loan you must:

  • Be over 18 years old
  • Be eligible to work in Australia
  • Live in Australia
  • Be an Australian or New Zealand citizen, Australian permanent resident or hold an eligible visa
  • Be employed or receive regular income
  • Have a good credit rating
  • Not be going through the process of bankruptcy

During the application process, we may ask you for some documents. These may include:

  • Proof of ID if you’re a new customer​
  • Passport details if you’re on a visa
  • Proof of income if your application is approved and your salary is not paid into a CommBank account
  • Debt with other financial institutions if you have any and your application is approved
  • If you’re applying for a Secured Personal Loan to purchase a car, we’ll ask you for some documents relating to the car you’re purchasing
  • For more detailed information on the documents you may need to provide, see here

  • Work out your debt: This could include multiple credit cards, loans and other lines of credit with other providers.
  • Apply now: Apply for a personal loan and select “debt consolidation” as the loan purpose. Include all the debts you would like to consolidate.
  • Pay off existing debt: If approved, use the funds to pay off your existing debt and close them off.
  • One repayment: Now that you only have one loan, you can focus on making only one repayment.

Example: You have two credit cards with debts of $3,000 and $4,000 each, and a personal loan with a debt of $7,000. Each of these debts likely have different interest rates, repayment amounts and due dates. To simplify your financial circumstances, you could take out a personal loan to close off these debt. This allows you to have just one set of recurring repayments, and a single interest rate. 

Estimate what your repayments could be

Calculate now

Resources to help you with your debt consolidation

What is a debt consolidation

Consolidating your debts can help reduce the stress of juggling multiple debts and interest rates.

Read article

Should you refinance your personal loan?

There are several situations where you may consider refinancing a personal loan.

Read article
How much can I borrow?
Help me choose a personal loan
Personal loan guide

We can help

Things you should know

  • This guide doesn’t consider your individual objectives, financial situation or needs. Before basing any decisions on this information, please consider:

    • its appropriateness to your circumstances.
    • obtaining professional advice specific to your needs, including financial, taxation and legal advice.

    1 Additional repayments made on a fixed rate and secured personal loan are not available to be redrawn. An early repayment adjustment is charged if loan is fully repaid with 12 or more months remaining on loan term, and we reasonably estimate we will incur a loss or administrative cost. View the Personal Loan Terms and Conditions.

    Your interest rate is based on a number of factors, including the information you provide and our assessment of your application. We'll confirm your interest rate in your loan offer document.

    Unsecured Fixed Rate Personal Loan interest rate ranges and the representative rate are set out below. Comparison rates and examples are based on a $30,000 unsecured fixed rate loan over 5 years:

    • Interest rates range from 7.75%2 p.a. to 19.75% p.a. (comparison rate from 9.15% p.a. to 21.05% p.a.). The estimated total amount payable including fees is between $37,433 and $48,589
    • The representative rate is 15.50%3 p.a. (16.83% p.a. comparison Rate), based on this representative rate the estimated total amount payable including fees is $44,446

    Unsecured Variable Rate Personal Loan interest rate ranges and the representative rate are set out below. Comparison rates and examples are based on a $30,000 unsecured variable rate loan over 5 years:

    • Interest rates range from 8.25%2 p.a. to 20.25% p.a. (comparison rate from 9.64% p.a. to 21.55% p.a.). The estimated total amount payable including fees is between $37,863 and $49,090
    • The representative rate is 16.00%3 p.a. (17.32% p.a. comparison Rate), based on this representative rate the estimated total amount payable including fees is $44,923

    2 Interest rates at the lower end of our range, for example 7.75%/8.25% p.a. (comparison rate 9.15%/9.64% p.a.), may be offered to customers with an excellent credit history.

    An excellent credit history is determined by, among other things, paying your bills and making loan repayments on or ahead of time, being disciplined with your credit applications, and not overextending yourself financially.

    Actions which can negatively impact your credit history include missing bill or loan repayments, defaulting on your credit facility, or making a large number of credit applications in a short period of time. You can find out more about how your credit score is calculated and tips for improving your credit score at our Credit Score Information Hub.

    3 At least half of our approved customers will receive the representative rate or lower.

    Your interest rate may be different and is based on a number of factors, including your credit history, the information you provide and our assessment of your application. We'll confirm your interest rate upon submission of your application.

    ^ You may be eligible for same-day funding if you’re approved, accept your contract and complete verification by 4pm Monday to Friday (Sydney/Melbourne time). Subject to credit checks and assessment of your financial situation. Unavailable if an application is incomplete or needs to be referred for a more detailed review by a lending specialist, or if required documentation isn’t provided, and subject to system availability.

    * Canstar 2024 Digital Banking Bank of the Year. 

    WARNING: 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.

    Applications for finance are subject to the Bank’s normal credit approval. View the Personal Loan Terms and Conditions. Full terms and conditions will be included in our loan offer. Fees and charges payable. Commonwealth Bank of Australia ABN 48 123 123 124. Australian credit licence 234945.