Feeling stretched juggling multiple credit cards, personal loans, or buy now, pay later bills? You’re not alone — and you’re definitely not out of options.

With the cost of living on the rise and interest rates shifting, many Australians are looking for smarter ways to manage their money. One strategy that could help you take back control is debt consolidation.

Put simply, debt consolidation means rolling multiple debts into one. Instead of managing several repayments, lenders, and due dates, you take out a new personal loan to pay off all your existing debts.

For example, if you’re paying off three credit cards with varying balances and due dates, consolidating them into one fixed-term personal loan could give you:

One predictable repayment amount

A clear debt-free dateless chance of missed payments or late fees

Think of it as hitting the reset button on your debt — with fewer moving parts.

Why this strategy can work

Debt consolidation isn’t about shifting the problem — it’s about creating a structure that supports you to repay it. In many cases, you could secure a lower interest rate than what you’re paying now, especially if you’ve been relying on high-interest credit cards or payday loans.

It can also reduce financial stress. Instead of juggling loan repayments and due dates, everything is in one place, making it easier to budget and plan ahead.

It’s not a one-size-fits-all solution
Debt consolidation can be a helpful step if you’re looking to get on top of your finances—but it’s not right for everyone. Under the responsible lending obligations, lenders need to make sure any loan is suitable for your needs and won’t put you in a worse financial position.

A debt consolidation loan might not be the best fit if it ends up costing more in the long run or if it risks encouraging more debt.

Here’s what to consider before applying:

Compare the total cost of the new loan, including interest and fees

Check that the repayments are manageable within your budget

Avoid taking on new debts while you’re still paying off the loan

If you’re considering debt consolidation, take the time to understand how it fits into your financial goals. Everyone’s situation is different, and what works for one person may not be right for another.

A responsible lender will help you assess whether a consolidation loan is suitable, affordable, and genuinely helpful for your circumstances. And if it is, it could be a smart way to simplify your repayments and work towards becoming debt-free sooner.