Debt Consolidation Calculator
Estimate whether consolidating your debts could reduce your repayments.
Could consolidating your debts save you money?
High-interest debts such as credit cards, car loans and personal loans can be expensive to carry. Consolidating them into your home loan may reduce your interest rate, lower your monthly repayments and simplify your finances with a single repayment.
The trade-off is that home loans usually run over much longer terms. While this can improve your cash flow, paying the debt back over a longer period may increase the total interest you pay unless you continue making higher repayments. This calculator helps you compare both outcomes.
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Frequently asked questions
Does consolidating debt save money?
It can, but not always. Consolidating debt into your home loan often reduces your interest rate and monthly repayments, improving cash flow. However, because home loans usually have much longer terms, you may pay more interest overall unless you repay the debt sooner. This calculator helps you compare both outcomes.
What debts can be consolidated?
Common debts include credit cards, personal loans and car loans. In some cases, other debts may also be eligible. The types of debt you can consolidate depend on your lender, your available equity and your individual circumstances.
Will consolidating my debts affect my credit score?
Applying to refinance usually involves a credit enquiry, which forms part of your credit history. Your credit score may change depending on your overall credit profile and how you manage your debts after consolidating. Everyone's situation is different.
Is debt consolidation right for everyone?
No. While it can simplify your finances and improve cash flow, it isn't always the lowest-cost option over the long term. Whether it makes sense depends on your goals, your budget and how quickly you intend to repay the debt.
What if I've had credit problems in the past?
Don't assume the answer is no. While some lenders have strict credit policies, others take a more holistic view of your circumstances, including your current financial position and what's happened since the credit issue. We'll review your situation and, if there are suitable lending options available, help you understand them.
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These figures are a guide, not a guarantee, and they're not legal, financial, tax or credit advice. Book a free discovery call and get real numbers for your situation.