page top

Consolidate Debt

Attention: open in a new window. Print


Debt can be a struggle, particularly when you’re trying to manage multiple debts for a number of important purchases – from a first home to a new car, higher education fees to start-up costs for your business. Debt is a necessary part of our everyday lives and isn’t usually a problem until you borrow beyond your means.

Debt consolidation can help if it feels like your debts are spiralling out of control. Refinancing existing loans or rolling several debts into one loan with a lower interest rate can be a valuable way to take back the control and help continue to finance personal goals.

If you are looking for ways to manage your debt, and even get debt free, consider these top tricks for consolidating debt and saving money.

1.Pay off your most expensive debts first

One of the smartest debt reduction strategies is to try to pay off the higher interest loans first, as these are the ones that will cost you the most. Adopt a strategy of paying off the most expensive one first, then focus on clearing the next most expensive loan, and so on and so forth. This approach will reduce your overall debt and you’ll be encouraged as you progress through the loans.

2.Move all of your debts into one consolidated loan

Often a bank or credit union can help you move all of your various debts into one consolidated loan with a lower interest rate. The outcome is often one single repayment to make each month and a scenario where you avoid the occurrence of late fees and high interest rate charges from having too many loans on the go at any one time. You will need to be smart with your money and try to save, as once the single loan repayments are made, you need to ensure you don’t incur new and separate debts, falling back into a similar position as before.

3.Move your debt onto a credit card with a promotional balance transfer rate

You can save money on credit card interest if you already have more than one card and a number of outstanding credit card balances. The trick is to find a credit card with a low promotional or introductory interest rate (often 0% for a limited time) and transfer the various debts onto that one card.  Not only does this give you extra time to pay off the debt and simplifies how you manage it, but it also rids you of some fairly hefty credit card interest rates that can easily rack up over time. You’ll need good credit to secure the promotional rate and remember that it won’t last forever so pay down the debt quickly and plan ahead for when the rate ends.  NB: Purchases made on balance transfer cards attract high interest changes and result in you repayments being applied to these new purchases first, and only the remainder going to the transferred debt.  With this in mind, you should refrain from using your balance transfer card for any new purchases.

The faster you take care of your debts and get the control back, the sooner you’ll begin to pay off the money you owe and reduce the overall amount that you owe, which is good for your wallet and even better for peace of mind. 

If you’d like to talk to us about low interest loans that could help consolidate your existing debts, call us on 1300 747 747 or find further information at


  Important Information

The information in this article is of a general nature and does not constitute as advice in relation to any investment or purchase. It has been produced without taking into consideration your personal financial circumstances, objectives or needs. Prior to making any decision you should conduct your own investigation and analysis of any benefits or costs associated with such. You should seek your own independent legal and financial advice.. Normal lending criteria apply to credit applications. Terms and conditions apply and are available on request. Qudos Mutual Limited trading as Qudos Bank ABN 53 087 650 557, AFSL/Australian Credit Licence 238305.


Article published March 2016