Debt Consolidation Loan - How to get out of debt?

Why?
Rates
Key fees
The detail
How to apply

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Personalised rates, fixed from 6.89% p.a. (comparison rate 8.01% p.a.^)

Our fixed rates range from 6.89% p.a. to 18.90% p.a. (comparison rate 8.01% p.a.^ to 19.93% p.a.^)

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.

About our ‘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.

Fixed rate

6.89% p.a. to 18.90% p.a.
Interest rate range

8.01% p.a. to 19.93% p.a.
Comparison rate^

1-7 years
Flexible loan term

Set repayments for simpler budgeting

Variable rate

8.89% p.a. to 18.90% p.a.
Interest rate range

9.99% p.a. to 19.93% p.a.
Comparison rate^

1-7 years
Flexible loan term

Redraw facility available

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

$195	Lending establishment fee
$12	Monthly loan account fee
$0	Per redraw on variable loans
$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.

The Detail

Before making a decision, please read these documents to ensure you’re aware of all fees, charges and interest rates.

Terms and conditions

General details of our personal loan products

Fees and charges

All costs for specific personal loan services and accounts

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 76KB), 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:

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 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.

Common questions about consolidating debt with a personal loan

Why take out a debt consolidation loan?

Reasons you might consider taking out a personal loan for debt consolidation include:

To simplify your finances and create good credit habits
To clear debts from multiple sources (e.g. credit cards, other personal loans, zip pay, afterpay – even car registration or insurance fees) and replace them with one debt
To create a clear pathway to becoming debt-free
To save on costs

Simplify your finances

Rolling multiple debts into one larger debt by refinancing with a new 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 do not 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 – for instance, with a credit card balance transfer offer you’re usually limited to transferring the balances from of credit or store cards you already have. Instead, a debt consolidation loan lets you refinance multiple types of debt, from credit and store cards to personal loans, alternate credit providers like afterpay – even upcoming large bills like insurance or car registration. 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 can also have the opportunity to set new loan repayment terms. That means you’ll know exactly when your one debt (the new loan) is cleared. With St George you can choose between a fixed or variable rate loan, 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 our debt consolidation loan is an unsecured loan (hence the name). That means 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

Taking 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?

There are three main ways a debt consolidation loan could save you money:

With only one loan to service, you’ll likely have fewer sets of ongoing fees to pay – such as monthly service fees or card annual fees (once you close these accounts). Note you’ll also need to check if there are any ‘break’ or early repayment charges for those other debts if you pay them off early.
Ensure the new loan you take out to consolidate all your debts is at a lower interest rate than those of your current debts. If you have several debts at different rates, you might need to compare the average rate.
The loan term you choose to repay the new loan over is 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:
- Gather the statements for all the debts you want to consolidate
- Add together all the regular repayments (whether they’re monthly, weekly or fortnightly). 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 of a debt consolidation loan, such as our personal loan. Our personal loan repayment calculator is a good place to start.

Tips for debt consolidation loans

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 the loan funds are available through your debt consolidation loan. If practical, close those other accounts to avoid further charges, or the risk of being tempted to use them again, creating new debts. This can also help your credit report 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 the interest rate look at the lending establishment fee and any monthly fees
Plan a repayment schedule that works realistically with your budget. While a shorter loan term will save on interest payments, it only works if you can comfortably make those repayments and don’t overcommit yourself.
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 for a given amount, but have higher regular repayments. Conversely, longer repayment terms charge more in interest and fees overall, but their regular repayments might work better with your budget.
While not a necessary part of planning a debt consolidation loan, you may find it useful to set a budget to keep track of how you’re spending your money.

Don't:

Don't submit more than one loan application, as that could negatively affect your credit score and reduce the likelihood you're approved
Don't simply put all your debts against your home loan without checking the costs. While a home loan might have a lower interest rate, again, the longer repayment period of the home loan means you might end up repaying significantly more in interest as a borrower.
Don’t apply for a debt consolidation loan without checking how much you’re likely to be approved for. If the debts you want to consolidate are from institutions outside of the one you’ll be borrowing from, in many cases you’ll be assessed on being still being able to repay those, as well as the new debt consolidation loan. Our Borrowing Power Calculator could help here.

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.

Calculators and resources

Use our online tools to learn more about your borrowing power and the types of loan we offer that could suit your purposes.

Frequently-asked questions

Learn from our selection of FAQ content to make the most of your loan’s features and capabilities.

Important information

Personal Loan Terms and Conditions (PDF 1MB)

Fees and Charges (PDF 3MB)

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 1MB) 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 20 January 2022. Interest rates are subject to change.

Our standard variable rate for unsecured variable rate loans is 12.99% p.a. (comparison rate 14.06%). 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 rate loan is 6.89% p.a. (Comparison rate 8.01% p.a.) with the estimated total amount payable including fees is $36,500.
The maximum interest rate for an unsecured fixed rate loan is 18.90% p.a. (Comparison rate 19.93% p.a.) with the estimated total amount payable including fees is $47,617.
The minimum interest rate for an unsecured variable rate loan is 8.89% p.a. (Comparison rate 9.99% p.a.) with the estimated total amount payable including fees is $38,231.
The maximum interest rate for an unsecured variable rate loan is 18.90% p.a. (comparison rate 19.93% p.a.). The estimated total amount payable including fees is $47,617.

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.

**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