Help & support
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.
To be eligible to apply for a personal loan you must:
During the application process, we may ask you for some documents. These may include:
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.
What is a debt consolidation
Consolidating your debts can help reduce the stress of juggling multiple debts and interest rates.
Should you refinance your personal loan?
There are several situations where you may consider refinancing a personal loan.
This guide doesn’t consider your individual objectives, financial situation or needs. Before basing any decisions on this information, please consider:
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:
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:
2 Interest rates at the lower end of our range, for example 7.00%/7.00% p.a. (comparison rate 8.41%/8.41% 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.
