It can be easy to feel overwhelmed by debt. These days it’s common to have multiple personal loans or credit cards against your name and it can be hard to keep track of what you owe on each. Many people find managing multiple debts a challenge. Between different interest rates, multiple payment schedules and varied repayment values it can be tricky to prioritise your payments and keep up to date. If you’re struggling to manage multiple debts, or if you just want simpler finances a debt consolidation loan may help.


What is debt consolidation?

Debt consolidation is the process of combining all your existing debts together into a single, easier to manage new loan. This can help you take control of your repayments and give you a clearer picture of your financial future – and a clear path to being debt-free. The simplest way to do this is by taking out a personal loan for debt consolidation purposes. This could lead to your repayments reducing as you consolidate expensive debt to a cheaper rate and/or spread the new loan over a longer period, improving your cash flow.


What is a debt consolidation loan?

A debt consolidation loan is a one-time lump-sum loan which can be used to pay off your existing debts. Instead of chasing up multiple debts and keeping track of multiple repayments at various times throughout the month.


A debt consolidation loan allows you to pay off your existing debts and replace them with one, low-interest rate loan. Once you’ve cleared your credit card, personal loans and other debts, you’re left with one straightforward loan to repay.


How can personal loan consolidation help me take control of my finances?

It’s simple. With only one loan to repay you’ll know exactly where you stand. You can make a budget and pay off your loan at the same time every month in easy, regular instalments. No more forgetting overdue bills, feeling overwhelmed by high interest rates or racking up hefty debts. Personal loan consolidation can help you feel in control of your financial future and start you on the path to financial freedom.


How does debt consolidation work?

Debt consolidation loans, are designed to pay off all your outstanding debts, essentially giving you a clean slate. Instead of keeping track of half a dozen debts, you now have one easy repayment, with one interest rate, to make.


Scenario: Sally has three different debts – two credit cards and a car loan with debts of $2,000, $5,000 and $10,000 – she also has three different interest rates and needs to make three different repayments at different times each month.


In the scenario above, consolidating these debts into one personal loan with a competitive interest rate to pay off both credit cards, the car loan and all outstanding interest could help simplify Sally’s financial position. The new personal loan would have a single repayment to make over the life of the loan – you can usually choose whether to make repayments weekly, fortnightly or monthly to best fit with your situation. Once the loans and credit cards are paid off, Sally should close them to avoid spiraling back into multiple debts, and instead focus just on her one debt consolidation loan.


Best of all, if the interest rate on your new personal loan is cheaper than your current debts, your repayments will be lower, enabling you to have a little extra in your account each month to save or put towards your loan to pay it off faster.


Managing your finances doesn't have to be stressful

The complexity of keeping up with multiple loans and multiple interest rates can be hard to manage, and makes budgeting and planning harder than it needs to be. Your debts could be costing you more in interest payments than they need to, especially when different loans have different interest rates. With interest rates on credit cards often up around 20% p.a., you could be struggling to pay off the interest as well as the actual credit card debt.


Fortunately, there is a simple way to reduce this stress and gain financial clarity. A debt consolidation loan can clear your existing debts and replace them with a single, regular payment.


Benefits of consolidating your debts

When should I take out a personal loan for debt consolidation?

If you’re feeling overwhelmed by your debts, it’s important to act early. The sooner you act, the easier it will be to find a solution. If any of the following statements apply to you, it may be time to consolidate your debts with a debt consolidation loan.

  • I struggle to keep up with repayments on my credit cards and/or loans
  • I find it difficult to keep track of my debts
  • I’m uncomfortable with the amount of debt I’m in
  • I think I’m paying more in interest than I should be
  • I think I’m paying more in interest than I should be


There’s no cut and dry rule about the best time to consolidate your debts, but the sooner you can get on top of your finances the easier it will be to create a debt-free future. If you’d like to discuss your personal debt consolidation options, give one of our friendly consultants a call.


A debt consolidation loan isn’t the right choice for everyone, and we may not be able to help every person in need of financial aid. If your application does not meet our credit criteria, or you need urgent help with your finances, we recommend you visit the Moneysmart Urgent Help with Money page or contact a financial support service.


Apply for one of our stress-free debt consolidation loans and start streamlining your debts

Applying for a debt consolidation loan is fast and simple. You can apply online or over the phone with the help of one of our friendly consultants.


To apply for a Gateway Bank Debt Consolidation Loan online, use our simple and easy online application, and make sure you have the following information ready to speed up your approval:

  • Your living expense figures
  • Details of your assets, income and liabilities
  • Statements for the last 3 months for your assets & liabilities
  • Your last payslip or evidence of income statement


We know debt can feel overwhelming, but we’re here to help. Get in touch today to get started.

Variable Rate Debt Consolidation Loan


Want to know more?

Product Features:

Car & Personal Loans
Establishment Fee : $149
Monthly Fee : $0
Annual Fee : $0
Discharge Fee : $0
Minimum Amount : $3,000
Maximum Amount : $30,000
Maximum Term (Years) : 7
Redraw Facility : Yes
Additional Repayments Accepted : Yes
Additional Repayments Fee : $0
Periodic Payments : Yes
ATM/EFTPOS Access : No
Branch Access : Yes
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.


Do I have to be a Member of Gateway Bank to apply for a personal debt consolidation loan?

You will need to be a Gateway Bank Member to hold a loan with us, however, you may submit your application prior to becoming a Member. Please note, if approved your loan won’t be funded until you have become a Member with us. Signing up as a Gateway Bank Member is quick and easy, and can be done online. Apply to be a Gateway Bank Member.

We’re one of Australia’s foremost customer-owned banks, and 100% of profits are used to benefit our Members.


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.

Having trouble deciding which Personal Loan is best for you?

Use our comparison tool to help find the option that suits you best.

Rates advertised apply to principal and interest repayment types only. Gateway reserves the right to vary these interest rates at any time. Interest rates quoted are for new lending only. Existing borrowers should contact Gateway to discuss their requirements. Applications for finance are subject to our standard credit assessment criteria. Full terms and conditions are included in the loan offer. Fees and charges apply.

Comparison rate is calculated based on an unsecured personal loan amount of $10,000 over a 3 year term. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.