Debt Consolidation Loans

If you’re juggling multiple debts right now, you know the feeling. Credit card payment due on the 5th, personal loan on the 15th, car payment on the 20th, and that buy now pay later purchase you forgot about until the reminder email arrived. It’s exhausting trying to keep track of it all, and the fees keep adding up every time you miss a due date by a day.

CashPal provides debt consolidation loans from $500 – $5,000 to help people manage their debts. We’re a direct lender that assists in paying off debts and merging them into one manageable loan with one monthly payment. No more spreadsheets trying to track multiple debts, and potentially better interest rates than what you’re paying now.

How Debt Consolidation Loans Work

A consolidation loan for debt is straightforward in concept. We lend you enough to pay off your existing debts, then you repay us with one regular payment. Instead of managing multiple debts with different rates and terms, you have one loan with consistent repayments.

The benefits go beyond just simplification:

• One payment to remember instead of five or six
• Potentially lower overall interest rate
• Fixed repayments so you know exactly what’s coming out each month
• Clear end date when you’ll be debt-free
• No more juggling multiple fees and charges

We offer loans for debt consolidation with terms from one to seven years, giving you flexibility to choose repayments that suit your budget.

Who Can Apply for Debt Consolidation

Our eligibility requirements are designed to be realistic. You need to be at least 18 years old, an Australian citizen or permanent resident, and have regular income from employment. We consider full-time, part-time, casual, and self-employed applicants.

What we’re really looking for is whether consolidating your debts makes sense for your situation and whether you can afford the new repayments. If you’re currently managing multiple debt payments (even if it’s a struggle), there’s a good chance a single consolidated payment will be more manageable.

We don’t require perfect credit scores because, frankly, if you’re looking at debt consolidation, your credit has probably taken some hits already. We’re more interested in helping you get back on track than judging past difficulties.

The Application Process

Applying for a debt consolidation personal loan with CashPal is refreshingly simple. You complete our online application, telling us about your current debts and financial situation. We need to see proof of income through payslips or bank statements, plus details of the debts you want to consolidate.

During business hours, we assess applications immediately. We look at your total debt, your income, and whether consolidation will genuinely improve your situation. Within 60 minutes, you’ll have our decision.

If approved, we’ll present a clear loan offer showing your new interest rate, repayment amount, and loan term. You’ll be able to see exactly how this compares to what you’re paying now. Accept the offer, and we’ll transfer the funds so you can clear those existing debts.

What Debts Can Be Consolidated?

Credit Card Debt

The big one for most Australians. High interest rates and minimum payments that barely touch the principal mean credit card debt can hang around for years. Consolidating multiple cards into one loan often saves significant money on interest.

Personal Loans

Whether it’s an old car loan, a holiday loan, or money borrowed for emergencies, existing personal loans can be consolidated. You might find our rates are better than what you’re currently paying.

Buy Now Pay Later Debts

These services seem harmless until you’ve got five different accounts all demanding payments. While they often don’t charge interest, the mental load of managing multiple BNPL debts is exhausting.

Payday Loans

If you’ve got a lot of payday loans, getting a consolidation loan can help your situation. Sometimes, short-term loans can quickly spiral out of control, and rolling them into a longer-term loan with reasonable rates can provide immediate relief.

The Real Cost of Multiple Debts

Let’s talk numbers for a moment. Say you have three credit cards with $2,000 on each at 20% interest, plus a personal loan of $4,000 at 15% interest. If you’re only making minimum payments, you’re looking at years of debt and thousands in interest charges.

Now imagine consolidating that $10,000 total into one loan at 12% interest with fixed repayments. Not only is the interest rate lower, but you’re actually paying off the principal with each payment instead of just servicing interest. The mental relief alone is worth it, let alone the money saved.

When Debt Consolidation Makes Sense

Consolidation loans for debt aren’t the answer for everyone, but they make sense when you’re dealing with high-interest debts that feel never-ending. If you’re struggling to keep track of multiple payments, regularly incurring late fees, or only making minimum payments that don’t reduce your balance, consolidation could help.

The key is being honest about your spending habits. Consolidating debts only works if you don’t immediately rack up new ones. We’ve seen customers successfully use consolidation as a fresh start, clearing their credit cards and then cutting them up to avoid temptation.

How It Affects Your Credit Score

Getting a new loan can give your credit score a short-term dip, yet consolidating debt usually pays off in the long run. Rolling several balances into one loan closes the old accounts and leaves you with a single repayment to manage. Lenders see those steady, on-time payments as a sign of solid money habits.

You are also shrinking what you owe rather than just shifting it from one card to another. As the balance falls and your repayment record stays clean, your credit profile often moves upward. Many borrowers finish a consolidation loan in far better shape than when they started.

Making the Most of a Consolidation Loan

If you decide to consolidate debts with CashPal, here’s how to maximise the benefits. First, actually close the accounts you’ve paid off, especially credit cards. The temptation to use newly available credit is strong, but that defeats the purpose of consolidation.

Set up automatic payments for your new loan so you never miss a due date. Use the money you’re saving on fees and interest to build an emergency fund, preventing the need for credit in future crises.

Most importantly, see this as an opportunity to reset your financial habits. With one manageable payment and a clear end date, you can finally see a path to being debt-free.