What is Debt Consolidation

Ozzie Loans offers flexible debt relief loans of up to $50,000 to help you consolidate your debt and avoid paying out excess interest. Our personal loan terms for debt consolidation begin at 12 months for short term finance options, to longer loan terms of 5 years (60 months) for larger consolidation loans.

Is it smart to consolidate debt?

Suppose you’re struggling to make repayments across several debts or find you can’t work out which debt to prioritise. In that case, a personal loan for debt consolidation could be a great way for you to minimise your accrued interest charges and lower your monthly repayments.

Provided the single monthly repayment on your debt consolidation loan is lower than that of your current repayments, and you don’t end up paying out more over time due to a longer loan term, it’s likely the most suitable choice to help you become debt-free sooner. 

To help work this out, you can use our debt consolidation loan calculator to get an idea of what repayments might look like across different loan terms, amounts, and comparison rates. 

Our small debt consolidation loans are among the best in the business. Our fixed interest rates are highly competitive, and that means you’ll know exactly what to pay off your unsecured debt consolidation loan and when. We also won’t penalise you for working hard and making early repayment before your loan term ends.

How to get a loan for debt consolidation?

Applying for a debt consolidation loan needn’t be stressful. 

Our debt consolidation loan application process takes only a few minutes to complete. It’s 100% online and doesn’t require messing around with uploads of supporting documents. That’s because we utilise the latest lending technology to access and assess your financial information online and to make sure our debt consolidation loan assessments are fair and transparent. 

To apply for any Ozzie Loans product, you’ll need to be at least 18 years old and an Australian citizen or resident for tax purposes. We’ll verify this online, so make sure you’ve got two forms of Australian-government issued ID handy when you start your application, such as your driver’s licence, passport or Medicare card.

We’ll ask you how much you’d like to borrow and over how long. We’ll then ask about your income, employment, and daily expenses (such as rent, groceries, utilities and subscriptions), as well as about your debts. It’s important to make sure you declare all existing debt and financial commitments, not just those you’re hoping to cover with your debt consolidation loan.  

That’s because, as a part of our assessment process, we’ll take a close look at your credit history. Your credit file reflects any applications for credit you’ve ever made and their approval status. Your credit file will also list all debt currently under your name, and returning a dishonest or fraudulent enquiry can severely damage your credit file and have a long-term negative impact on future loan or credit applications.

If you’re applying to consolidate debt, it’s likely that your credit score has taken a few hits. So you’ll be happy to know that there have recently been some changes in the way that credit is reported and recorded, and we’re huge fans! 

Where your credit file previously only reflected any bad bits, such as where you may have missed a bill or defaulted on a line of credit, the new, comprehensive method of credit reporting allows us also to see your positive credit behaviours over the past 24 months.

This means all your regular, on-time repayments are recognised, creating a much clearer, fairer, and more positive borrower profile while more accurately reflecting your current circumstances instead of automatically penalising you. 

Ozzie Loans assesses each loan application individually. We use machine learning processes and algorithms to help us make informed lending decisions when you apply for our debt consolidation loans. These decisions are based on the information reflected in your credit profile, income and employment history, bank statements and other factors.

Combined, this gives us an accurate picture of your current borrowing capacity, including accounting for contingencies and allows us to craft a personalised debt relief loan suitable for your circumstances. 

We want to make sure you don’t end up experiencing further financial duress as a result of your debt consolidation loan, so we’ll only offer funds to customers who can demonstrate they can comfortably manage their new repayment schedule. 

So, if you’re ready to regain control of your finances and save valuable time and money while you do, apply online for an Ozzie Loans personal loan for debt consolidation today. We offer speedy approval for consolidation loans between $5,000 and $50,000 at Australia’s most competitive fixed interest rates. 

Oh - and we love rewarding our good customers! Over time, if our system identifies consistent positive credit behaviours on your account, you might be eligible for new, low rate loans and credit products.