11/12/2025
The Truth About Consolidation Loans
As affordability tightens, we see that unsecured debt is slightly on the rise in Australia.
In line with this, one of the most frequent questions I’m asked, is “Are consolidation loans worth it?”
Quite frequently, consolidation loans simply group the debt and sometimes extend the term of the loan, which may create a lesser monthly payment. However, it may not be the best economic move, particularly if you are extending the term. Other things to consider are: the fees associated with the changes and any lock in contracts to the new loan.
I would recommend doing a proper economic comparison, prior to entering into a consolidation loan, so that you are considering the economic facts, and not just the monthly outgoing.
I am in favour of zero interest balance transfers. However, with a caveat that these consolidations must be paid and not added to.
For more information, or to discuss your situation further, please feel free to contact me on 📞 0437 922 210 or 📧 [email protected]
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