Debt Consolidation Loan - How to get out of debt?

Why?
Rates
FAQs
How to apply

Why consolidate debt with an Unsecured Personal Loan?

Borrow between $2k-$50k

Consolidate several credit cards, store cards and personal loans into a single debt balance.

A single interest rate

Know how much interest you're paying on the combined debts at any one time.

One regular repayment

Keep track of a single regular repayment on the combined debt.

Set an end-date for your loan

Every repayment reduces what you owe and gets you closer to paying off your loan.

Redraw facility on variable rate loans

Redraw money from the amount you've repaid, provided you're at least $500 ahead on your repayments. Each request is subject to approval.¹

Flexible loan repayments

Choose a loan term of 1-7 years to suit your circumstances and make weekly, fortnightly or monthly repayments.

Choose between our Unsecured Personal Loans

Variable Rate Personal Loan

Whether you’re planning for your big day or the trip of a lifetime, our Variable rate Personal Loan can help.

6.89% p.a. to 19.99% p.a.	Interest rate range
7.59% p.a. to 20.59% p.a.	Comparison rate range^
15.49% p.a.	Median rate
$2,000 - $50,000	Borrowing amount
1 - 7 years	Loan term
$0 establishment fee Right now, we’ll waive your $150 establishment fee when you apply for a variable rate Unsecured Personal Loan by 18/12/23.^##

Apply now Apply now

Fixed Rate Personal Loan

Time to upgrade your ride or home? Or looking to combine your debts? Our Fixed rate Personal Loan may be the right fit.

6.89% p.a. to 19.99% p.a.	Interest rate range
7.81% p.a. to 20.83% p.a.	Comparison rate range^
15.49% p.a.	Median rate
$2,000 - $50,000	Borrowing amount
1 - 7 years	Loan term

Apply now Apply now

Our standard variable rate is 12.99% p.a. (comparison rate 14.06% p.a.^{^})

The rate for some customers is based on personalised pricing. The final rate you’re offered may be lower or higher than 12.99% p.a. (comparison rate 14.06% p.a.^), depending on your personal financial circumstances.

Key Fees

Variable rate Personal Loan

$150	Lending establishment fee
$10	Monthly loan account fee
$0	Per redraw on variable loans
$0	Loan discharge fee if you fully repay the loan within the first 12 months

Fixed rate Personal Loan

$150	Lending establishment fee
$10	Monthly loan account fee
$150	Loan discharge fee if you fully repay the loan within the first 12 months
$100	Loan discharge fee if you fully repay the loan after the first 12 months and before the end of the loan term

Fees are subject to change.

Repayment calculator

This calculator helps you estimate how much your personal loan repayments could be^#.

Debt consolidation FAQs

Why apply for a debt consolidation loan?

Reasons you might consider consolidating debt with a personal loan include:

To simplify your finances and create good credit habits
To clear debts from multiple sources (e.g. credit cards, other personal loans, alternative credit providers – even car registration or insurance fees) and combine them into one debt
To create a clear path to becoming debt-free
To save on costs

Simplify your finances

Rolling more than one debt into a single debt consolidation loan means there is less financial admin in your life.

Once you’ve repaid the outstanding debts with the new loan, it’s worth considering closing those other accounts so you don’t use them and continue to grow new/additional debt. That way you’ll only have one loan to deal with, meaning less juggling, you won’t be charged multiple ongoing fees and or interest on those accounts, and they’ll no longer be listed as liabilities on your credit history. If you close these accounts, there’s also less temptation to overspend.

This easier-to-manage approach is a good credit habit to have as it helps keep you in complete control.

Clear debts from multiple sources

With a debt consolidation loan you’re not limited to refinancing just one type of debt - unlike credit card balance transfers. Debt consolidation loans let you refinance all your existing debts, from credit card debt to store cards to personal loans and alternate credit providers, even upcoming large bills like insurance or car registration or cash loans. Another difference is that balance transfer offers may also charge interest on new purchases if they’re not fully repaid within the interest-free period.

Create a clear path to being debt-free

Consolidating multiple debts with a new personal loan means you also have the opportunity to set new loan repayment terms. That means you’ll know exactly when your one debt (the new loan) is repaid. With St.George you can choose between a fixed interest rate or a variable interest rate, and to repay it over a one to seven-year term. Furthermore, if monthly repayments don’t suit the way you’re paid, you can choose to make fortnightly or weekly repayments.

Note that we offer an unsecured debt consolidation loan. With unsecured loans you don’t need to offer an asset like your car or house as security to get the loan – as you would with a secured loan. Our secured loan can only be used for buying a car.

Save on costs

A debt consolidation loan won’t automatically save on costs. To make sure it does, you’ll need to factor-in all the costs of repaying your current debts as they are now – including any fees or charges for paying some debts early – and compare that total to the full costs of refinancing with a new debt consolidation loan. The section below outlines this in more detail.

How could a debt consolidation loan save you money?

Here are three ways debt consolidation loans could save you money:

Once you've used one to repay your other debts, you can close those other accounts to reduce the number of fees – such as monthly service fees or card annual fees - you'll need to pay. Note you’ll also need to check if there are any ‘break’ or early repayment fees for those other debts if you pay them off early.
Ideally the new loan you take out to consolidate all your debts is at a lower rate of interest than the interest rates of your current debts. If you have several debts at different rates, you might need to compare the average rate.
If practical, choose a repayment term for the new loan that's equal or shorter than the repayment terms of your current debts. Even a lower rate can end up costing more if it’s stretched out over a long repayment period.

To get an idea of how much you could save by consolidating:

Get an understanding of how much you’ll be repaying with your debts as they are now:
- Add together all your regular repayments. These should already have the interest you’re charged factored-in
- Add-in any extra costs that mightn’t be covered by those regular repayments (e.g. a credit card’s annual fee)
- Also add in any early repayment costs, sometimes called ‘break costs’ (note these are more likely for debts with a fixed repayment schedule, like other personal loans).
Compare those repayment costs to those for the same loan amount with a debt consolidation option, such as our personal loan. Our personal loan repayment calculator can help you do this.

How to make debt consolidation loans work for you?

Do:

Check the detail with your current credit provider or providers to make sure you're clear about how much you owe, and any penalty costs for repaying your loan early
Pay off the debts immediately once you've received the debt consolidation loan funds. Some of these debts you may be able to pay off directly. If practical, close these other accounts to avoid further charges, or the risk of being tempted to use them again and create new debts. This can also help your credit score and credit history because each form of credit you have open – even if you don’t owe money on it – is viewed as a liability
Consider all the costs of a new loan – in addition to interest rates, look at the lending establishment fee and any other fees
Look at the impact of shorter or longer loan terms. While the interest rate might be the same regardless of term, a shorter repayment term means you’ll be charged less interest and fees overall, but have higher regular repayments. Conversely, longer repayment terms might charge more in interest and fees overall, but as their regular repayments might be lower, it could work better for your budget by freeing up cashflow.

Don't:

Avoid making more than one loan application, as that could negatively affect your credit score, reducing the likelihood you're approved
Don't simply put all your debts against your home loan without checking the costs. While home loans might have lower interest rates, again, their longer repayment period means you might end up paying significantly more in interest as a borrower.
Don’t apply for a debt consolidation loan before checking how much you’re likely to be approved for. Our borrowing power calculator could help here.

Before you apply

Follow this section to improve the likelihood your application is approved.

Make sure you’re eligible to apply

You’re aged 18 or over
You have permanent residency in Australia/NZ OR;
You’re a non-resident or migrant and hold an acceptable Visa (PDF 269KB), with a minimum 1 year before expiry
You have a regular, verifiable Australian taxable income
You have a fixed, verifiable residential address in Australia.

Review your credit history

You’ll be assessed on your ability to repay the money you borrow. Three things you can do to help:

Make sure you’re meeting your current repayment obligations for
- other credit cards or loans (including lenders such as afterpay and zip pay)
- rent as well as utilities such as your phone, internet and electricity.
Check the details on your credit report are correct before applying. Head to CreditSmart.org.au and follow the links to a free credit report. More about credit reports.
Don’t make multiple applications (with us or any other lender). Every application is listed as an enquiry on your credit report. Too many can be seen as a red flag and reduce your chances of approval.

Get your documents ready

Make sure you have everything in the list below:

Proof of identity including at least two of the following:
- Australian driver licence
- Medicare card
- Passport
- Australian birth certificate
- NSW photo card.

Current debts in your name (e.g. home loan, personal loans, other credit or store cards as well as instalment purchases such as zip pay)
Proof of income. If your pay doesn’t already go into a St.George account, you’ll need to show at least one of the following:
- Two payslips from your main employer from the last two months
- A Government Authority statement from the last two months confirming your pension or allowance
- Rental income proof covering the last three months
- Self-employed? You’ll need to show you’ve been in business for at least 18 months, the last two months’ business bank statements and last year’s Notice of Assessment.
All your regular monthly expenses (including phone bills, insurances etc.)
If you’re a tax resident of another country, you’ll need your foreign tax identification number.

If you’re already a St.George customer, you’ll also need to:

Sign into online banking to double-check your personal details (name, address etc) are up-to-date
Apply as an existing customer in the application form
We will have answered some of the basic questions such as personal details (name, address etc) on your application for you. Check that they’re correct.

Additional eligibility criteria or documentation may be required.

How to apply for a loan

Apply online in 20 minutes, 10 minutes if you’re already with us.

When you press submit you’ll get an answer within 60 seconds. Part of that answer may be that we’ll need to verify some of your details

Once your application’s approved, we’ll invite you to review and accept your contract online.

Once you’ve accepted, we’ll automatically send the funds to the account (or accounts) you’ve nominated. If that’s an account with us, it’ll be there within 60 minutes.

Help me choose

Use the selector to find a loan that's right for you.

Compare personal loans

Use our compare personal loans tool so that you feel confident in your decision.

Important information

Personal Loan Terms and Conditions (PDF 678KB)

Fees and Charges (PDF 1MB)

Internet Phone Banking Terms and Conditions (PDF 1MB)

Any advice on this website is general in nature and has been prepared without considering your objectives, financial situation or needs. Please read the product disclaimer and Terms and Conditions (PDF 678KB) documents and consider your individual circumstances before applying for a St.George Personal Loan. Credit criteria, fees, charges, terms and conditions apply. Information correct as of 27 November 2023. Interest rates are subject to change.

Our standard variable rate for unsecured variable rate loans is 12.99% p.a. (comparison rate 14.06% p.a.). The rate for some customers is based on personalised pricing. The final rate you’re offered may be lower or higher than 12.99% p.a. (comparison rate 14.06% p.a.), depending on your personal financial circumstances.

^Comparison rates: Comparison rates help you understand the true cost of a loan. All comparison rate examples shown are for a personal loan amount of $30,000 and a term of 5 years. WARNING: Comparison rates apply only to the example or examples given and may not include all fees and charges. Different loan amounts and terms will result in different comparison rates. Costs such as loan discharge fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Unsecured Personal Loan repayment terms range from 1 to 7 years. Interest rate ranges and representative examples are based on an unsecured loan of $30,000 borrowed for 5 years:

The minimum interest rate for an unsecured fixed & variable rate loan is 6.89% p.a. (Comparison rate 7.81% p.a.) with the estimated total amount payable including fees is $36,327.
The maximum interest rate for an unsecured fixed & variable rate loan is 19.99% p.a. (Comparison rate 20.83% p.a.) with the estimated total amount payable including fees is $48,517.

#Repayment calculator & assumptions: Any calculations made by you using this calculator is intended as a guide only. It is for illustrative purposes only and is based on the accuracy of the information provided. The calculation is not an offer of credit. The amount you can borrow may vary once you complete a loan application and all the details relevant to our lending criteria are captured and verified. The calculations should not be relied on for the purpose of making a decision whether to apply for a personal loan. Weekly and fortnightly repayment calculations – if your monthly repayments are $1000, fortnightly repayments are calculated by dividing $1000 by 2 and rounding up if required ($1000 ÷ 2 = $500). Weekly repayments are calculated by dividing $1000 by 4 and rounding up if required ($1000 ÷ 4 = $250).

##$0 establishment fee offer is available for customers who apply, are approved and accept their Variable rate personal loan contract before 18/12/23. To receive this offer applicants must apply online using the 'Apply now' button on this page and select ‘Variable rate loan’. This offer is not available for Fixed-rate or Secured Personal Loans. Excludes non-resident or migrant applicants. Offer can be changed or withdrawn at any time.

¹A Redraw facility is available on variable interest rate loans only. Redraw requests are subject to approval. Minimum redraw amount is $500 and a $0 redraw fee applies to each approved request. Other fees and charges may apply.

*Access to funds within 60 minutes: Available for existing customers who apply for an Unsecured Personal Loan, as a single applicant online. Loan funds will be disbursed into an existing St.George account 60 minutes from final approval.

**Personalised rates: The rate for some customers is based on personalised pricing. Instead of a one-size-fits-all approach, personalised pricing allows us to offer more people personal loans at a better rate, based on an assessment of credit history as well as the information provided in the application.

Unless otherwise specified, the products and services described on this website are available only in Australia from St.George - A Division of Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.

Debt Consolidation