How do I combine all debts into one payment?

To combine all your debts into one payment you need to apply for a debt consolidation loan. This loan will cover all your existing debts and leave you with a single loan to pay off, usually with a lower interest rate.

Step 1: Apply for a personal loan for debt consolidation. Work out how much you need to borrow to pay off your existing debts. This can include credit cards, bills, car repayments or any other debts.
Step 2: Pay off your existing debts. If your application is approved, you can use the money funded to you through the debt consolidation loan to pay back your various debts. A financial consultant can help you prioritise which debts to pay off first and help you make the most of your loan.
Step 3: Pay off the debt consolidation loan. In place of your multiple debts, you will now have one single loan to repay.

Is a debt consolidation loan right for me?

While every individual is different, there are some key indicators which show that a debt consolidation loan might be right for you:

You’ve accumulated multiple debts. People often become overwhelmed by multiple debts. Between a mortgage, car loan, credit card debt and bills it’s often difficult to keep up with payments and once debt accumulates in multiple accounts it can be very hard to get on top of it.
You’re paying off high-interest debts. High-interest debts such as credit cards can cost you money unnecessarily. A debt consolidation loan can save you money by paying off the high-interest debt and replacing it with a more reasonable interest rate.

It’s important to bear in mind that a debt consolidation loan isn’t the right choice for everyone. There are also a number of factors which may impact your ability to get a debt consolidation loan:

Low income. You need to be able to pay off the debt consolidation loan. If your income is deemed insufficient to pay off the loan, your application would be declined.
Extremely high debt. If your debt is extremely high you may not be suitable for a debt consolidation loan. At Gateway Bank we offer debt consolidation loans of up to $30,000.
Poor credit scores. If your credit rating is extremely low you may not be eligible for a debt consolidation loan.

If you’re feeling unsure about whether a debt consolidation loan is the right option for you feel free to get in touch with our friendly team for expert advice.

What are some alternatives to a debt consolidation loan?

A debt consolidation loan is a common way to streamline your debts, however, there are alternatives to applying for a debt consolidation loan which you may also consider.

Talk to your loan provider. If you’re unable to keep up with loan repayments your loan provider may be able to assist you. At Gateway Bank, we have financial hardship processes which can help you to catch up on your debts by pausing your repayments or adapting your loan.
Switch home loans. A mortgage is the single biggest debt commitment for most Australians, and an unnecessarily high interest rate or expensive fees can cause undue financial stress. Look into switching to a more affordable home loan to help manage your debts.
Consider transferring your credit card balance to a new card. A balance transfer may help you get on top of your repayments with special introductory rates or lower interest overall.

It’s important to note that every situation is different, and the right solution for you will depend on your unique financial situation, credit history and other factors. Talk to one of our consultants to find the right solution for you.

Is a debt loan the same as debt consolidation?

Yes. Debt consolidation is the process of paying off your existing debts and replacing them with a single loan – sometimes called a “debt loan”. The purpose of a debt loan is to pay off your existing debts and replace them with a single, low-interest loan which is easier to pay off. This process can also be called “refinancing”.

How much money can I borrow with a debt consolidation loan?

At Gateway Bank our members can borrow from $3,000 to $30,000 with a debt consolidation loan.

The amount you’re able to borrow will vary depending on your personal circumstances, your credit score and other factors. If you need to borrow more than $30,000, talk to one of our consultants to discuss your options. To find out exactly how much you can borrow, apply for a debt consolidation loan online today.

Can I pay off my loan early?

Absolutely! In fact, we highly encourage our Members to pay off their loans early. As Australia's foremost Member-owned bank, our loans are designed to benefit our Members. Paying off your loan early not only means you’ll pay less in interest but it can also improve your credit score in the long run. We allow unlimited extra repayments to help you pay off your debt consolidation loan as early as possible, with no penalties for additional payments.

We also offer flexible repayment options. You can choose to pay off your loan weekly, fortnightly or monthly and can make additional payments whenever you like.

Plus, if you need extra cash unexpectedly, our redraw facility allows you to access any additional funds from your debt consolidation account of $250 or more.

How long does it take for a debt consolidation loan to get funded?

Your debt consolidation loan will be funded once we’ve received your signed offer and correctly completed loan documentation.

Once we’ve received your signed contracts, you will need to allow two to seven business days for your loan to be funded.

I’m experiencing financial hardship and can’t make my loan repayments. Can you help me?

We understand that extenuating circumstances and financial difficulties can strike at any time – and the sooner you act in these situations, the better. If you are experiencing genuine financial hardship and are unable to keep up with your loan repayments we encourage you to contact us immediately on 1300 728 995 (Monday - Friday, 8am - 6pm AEST). One of our financial consultants will discuss your situation and present you with options to help you regain control of your finances.

Is there a redraw facility on my debt consolidation loan?

Yes. We offer fee-free redraw facilities on our debt consolidation loans with a minimum redraw of $250 required. If you need access to your funds, you can redraw any additional payments that you’ve made as long as there is a minimum redraw value of $250.

A redraw facility allows you to access any additional payments you’ve made on your loan. So, if you’re ahead of schedule with payments on your debt consolidation loan, you can use some of the funds accumulated from those additional payments. For instance, if you’ve got an extra $1,200 paid off against your consolidation loan and your car needs an unexpected repair, you can use that $1,200 to pay for the repair.

What are the benefits of debt consolidation?

There are many benefits to consolidating your debts with a personal debt consolidation loan.

Simplifies your loans and repayments – With multiple debts and multiple due dates throughout the month it can be easy to miss payments and incur expensive late payment penalties. With only one payment to worry about it’s much easier to keep on top of your debt repayments and ensure you never miss important payments.
One competitive interest rate – having multiple debts means juggling multiple interest rates and it can be difficult to keep track of them all and to know you’re getting the best deal. With one loan and one interest rate, you can gain clarity and confidence about your interest rate.
Reduce stress – Keeping up with multiple debts can take up a lot of headspace. From carefully budgeting your money to make sure there’s enough to pay your bills every month to keeping up with complex repayment schedules, the more loans you have the higher the mental load – and the mental strain. One consolidated load can ease the mental burden of keeping up with your debts.
The path to financial freedom – Debt consolidation is one of the most important steps you can take on the path to financial freedom. It not only pays off your existing debts, it also empowers you to take control of your personal finances with one simple, regular payment.
Flexible payment options – With a Gateway Bank Debt Consolidation Loan you can pay off your loan in a way that suits you, making monthly, fortnightly or even weekly payments. You can even pay your debt off early with unlimited fee-free additional payments.

To discuss the benefits of a debt consolidation loan and to find out whether it’s the right option for you, please get in touch with us online or call 1300 302 474 to talk to one of our friendly, expert consultants.