Need to consolidate your debts before the next due dates?

Credit card on the 3rd, car loan on the 5th, buy now pay later on the 6th, and a tax instalment somewhere in between. When the due dates cluster, the week feels like a game of whack-a-mole.

The fast fix is one loan that pays them all out before the next round of repayments, but only if it actually leaves you better off. Here’s how to tell, and how to move quickly when it does.

How do I know if debt consolidation will actually help?

Consolidation is a tool, not a cure. It helps when the new loan is cheaper overall, or when one manageable repayment genuinely replaces several you’re struggling to juggle.

Moneysmart’s warning is worth repeating: lower repayments over a longer term can mean you pay more in total. So before you chase speed, do the maths.

Write down, for every debt:

• the balance owing today,
• the regular repayment and its due date,
• fees, including any early repayment or payout charge,
• how long is left to run, and
• whether it’s secured against something (a car, a house) or unsecured.

Then ask the hard question: once these are paid out, will I close the old cards? If the honest answer is “probably not”, consolidation can turn one problem into two. Our fast cash traps page shows how stacked credit sneaks back.

What’s the fastest way to consolidate debts?

Your fastest route depends mostly on one thing: whether you own property.

Your situation	Likely fastest route	Realistic speed	The catch
Own property, business owner	Property-secured business loan ($20,000 to $5,000,000)	$20k to $250k possibly same day	Pricing depends on your situation; needs a clear exit
Own a home, PAYG income	Top-up with your current home lender	Often weeks	Full reassessment
Own a home, need speed	Second mortgage or caveat loan	Days	Short-term, priced for speed
Renting, steady income	Personal loan	A few days	Income and existing debts tested
Trading business	Unsecured cash-flow facility (typically $5,000 to $500,000)	Same day possible on smaller amounts	Sized on turnover and bank statements
None of the above fit	Hardship arrangements with each creditor	One phone call each	Not a loan, but no new debt either

Property owners can compare equity options side by side on home equity, fast. Renters will find the general rules on fast personal loans.

What makes a consolidation loan slow?

Consolidations have more moving parts than most loans, because the lender pays out other lenders. The usual hold-ups:

• Stale payout figures. Each creditor has to confirm what’s owed on the day, and some take a couple of business days to issue a letter.
• Forgotten debts. An old store card that shows up on your credit file but not your application sends everything back for a rethink.
• Joint accounts. If a partner is on one of the loans, they may need to sign too.
• No exit plan for short-term loans. Caveat and second-mortgage lenders want to see how you’ll refinance or repay.

Ask each creditor for a payout letter tonight by email or app and you’ll knock days off the process.

Got your list done? Start the 60-second consolidation check →

Is it risky to put unsecured debts against my home?

It can be, and it’s the trade-off people skip over when the due dates are breathing down their neck.

Credit cards and personal loans are usually unsecured. If you roll them into a loan secured by your home, Moneysmart points out that the property becomes the thing at risk if repayments stop.

That doesn’t make it wrong. It means you should only do it when:

1. the repayment fits your budget with room to spare,
2. you’ve got a clear plan to reduce the balance, not just shuffle it, and
3. you’ve closed or reduced the limits on the old cards.

If any of those feel shaky, slow down for a day. A day’s pause is cheap compared with putting the roof over your head on the line for a debt that would’ve been fine on a hardship plan.

Can I get more time instead of a new loan?

Often, yes, and it’s worth trying before or alongside any consolidation.

According to Moneysmart, when you ask your lender for help, it must consider you for hardship assistance. That might be a short pause, lower repayments for a while, or a longer term. If they refuse, they have to tell you why.

Two things people worry about, answered by Moneysmart:

• Does it wreck my credit score? A financial hardship arrangement won’t affect your credit score. Your report will show the arrangement is in place, and that listing is removed after 12 months.
• Do I have to do it alone? No. The National Debt Helpline on 1800 007 007 connects you with a free, confidential financial counsellor who can make the calls with you.

Our hardship arrangements guide has a script for the call.

How much should I borrow to consolidate?

Enough to clear every debt you’re targeting, plus any payout fees, and nothing more. It sounds obvious, but in a rush people either:

• under-borrow, leaving one stubborn card behind that keeps the juggling going, or
• over-borrow, adding a “while we’re at it” holiday that stretches the loan for years.

Payout figures change daily as interest and fees are added, so get fresh ones from each creditor just before settlement. How much to borrow has a quick method for setting the right buffer.

How do I find out if I qualify to consolidate this week?

You’ve got your list of balances and due dates. That’s the hard part done.

Send one enquiry with those exact figures. There’s no credit check at that point, so the mere act of asking won’t land on your file. A real person reads it, calls you back and talks through whether one loan, a hardship plan or a mix of both makes the most sense.

And your details stay put. They aren’t sprayed to a roomful of lenders, so you won’t spend tomorrow dodging a dozen unknown numbers.

Please answer accurately, especially the debts you’d rather not mention. Leaving one out is the most common reason a consolidation falls over at the last step.

Find out if you qualify →