Quick answer: Yes, several eligible debts can potentially be combined, but “one repayment” is not automatically the cheapest structure. Compare each debt and exclude any debt that becomes more expensive when rolled into the new term.
Australian borrowers commonly describe a messy stack rather than one debt: credit cards, Zip, personal loans, a car loan, overdue rates and sometimes payday debt.
The mistake is assuming the solution has to contain all of them.
Build the exact payout schedule
For every facility capture:
- creditor;
- verified payout balance;
- rate and fees;
- required repayment;
- remaining term;
- whether it is revolving;
- whether it is secured.
Prioritise the debts causing the problem
High-interest revolving debt often creates the strongest consolidation case because there is no fixed finish line unless the balance is aggressively reduced.
A nearly repaid fixed loan may be the opposite: resetting twelve months of debt into five years can cost more even at a lower rate.
Do not confuse convenience with savings
“One payment instead of six” has value, but price that benefit honestly. If total cost rises substantially, the convenience may not be worth it.
Partial consolidation is often better
A common pattern is: clear the cards/Zip, leave the current car loan alone, close the paid-out facilities, then attack the new fixed loan.
That can be cleaner than refinancing every liability.
General information only. Approval, pricing, fees and eligibility depend on the lender, borrower circumstances and contract.
Frequently asked questions
Do I have to consolidate every debt?
No. Partial consolidation can be stronger.
Can a car loan stay separate?
Yes, particularly where its rate and remaining term are already better than the proposed unsecured loan.
Can BNPL and cards be included?
Potentially, subject to lender policy and verified payouts.
What if one debt has only six months left?
Model leaving it alone before restarting it over a new multi-year term.
Should I include cash out?
Only for a genuine purpose that remains affordable; extra cash can weaken the debt-reduction benefit.
Sources and verification
Related GPS Finance resources
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