Debt Consolidation and Repayment

Trying to pay off several debts at once? Read this guide to find out how debt consolidation can simplify your repayments and help you take control of your finances.

Debt consolidation is the process of combining all your debts into one loan. This option means you will only have to make one repayment at a time and will only have to deal with one interest rate. Some products even offer an introductory low or 0% interest rate on the combined balance.

As a result, debt consolidation can save you money on interest charges and also help you pay off your debt faster. Here, we look at how this process works, the different options you have for consolidating your debts and the pros and cons of debt consolidation to help you decide if it will work for you.

Virgin Australia Velocity Flyer Card - Balance Transfer Offer

Virgin Credit Card Balance Transfer Offer

Enjoy a long term balance transfer offer of 0% for 18 months.

  • $64 p.a. annual fee for the first year ($129 p.a. thereafter) annual fee
  • 20.74% p.a. on purchases
  • 0% p.a. for 18 months on balance transfers
  • Cash Advance Rate of 20.99% p.a.
  • Up to 44 days interest free
  • Minimum Income Requirement of $35,000 p.a.

Repay your debt interest free with a balance transfer

Rates last updated October 1st, 2016.

St.George Vertigo Platinum

Balance transfer period changed from 20 to 18 months and is valid until 4 January 2017.

September 30th, 2016

St.George Vertigo Visa

Balance transfer and purchase offer have been extended until 4 January 2017.

September 30th, 2016

Bank of Melbourne Vertigo Visa Credit Card

Intro APR of 1% for 12 months and BT offer of 0% for 18 months extended until 4 January 2017.

September 30th, 2016

View latest updates

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Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Interest Saved
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Earn Velocity points and repay your credit card debt with a long term balance transfer offer.
0% p.a. for 18 months 20.74% p.a. $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
Westpac 55 Day credit card
Enjoy a balance transfer offer of 0% p.a. for 16 months, an introductory purchase rate of 1% p.a. for up to 12 months, plus a waived annual fee for the first year if applied by 11 October 2016.
0% p.a. for 16 months 1% p.a. for 12 months (reverts to 19.84% p.a.) $0 p.a. annual fee for the first year ($30 p.a. thereafter) Go to site More info
HSBC Platinum Credit Card
Earn reward points with high credit limits, prestige services including a personal concierge service.
0% p.a. for 15 months 19.99% p.a. $149 p.a. Go to site More info
ANZ First Visa Credit Card - Exclusive Offer
Take advantage of this exclusive offer and enjoy 0% p.a. for the first 12 months on balance transfers and 0% p.a. for the first 3 months on purchases.
0% p.a. for 12 months 0% p.a. for 3 months (reverts to 19.74% p.a.) $30 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months with a one off 2% balance transfer fee 0% p.a. for 15 months (reverts to 13.99% p.a.) $59 p.a. Go to site More info
Westpac Low Rate Card
Save with a low rate on balance transfers and purchases with a low annual fee.
0% p.a. for 18 months 1% p.a. for 12 months (reverts to 13.49% p.a.) $59 p.a. Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
0% p.a. for 18 months 1% p.a. for 12 months (reverts to 13.24% p.a.) $55 p.a. Go to site More info
Bank of Melbourne Vertigo Visa Credit Card
A low rate purchase card with an introductory purchase rate and a long term 0% balance transfer offer.
0% p.a. for 18 months 1% p.a. for 12 months (reverts to 13.24% p.a.) $55 p.a. Go to site More info
American Express Essential Credit Card
Receive a $50 credit on eligible spend and get Smartphone screen insurance combined with a no annual fee for life card. Also enjoy a 0% p.a. balance transfer rate for 12 months.
0% p.a. for 12 months with 1% balance transfer fee 14.99% p.a. $0 p.a. Go to site More info
St.George Vertigo Platinum
A platinum card with a balance transfer offer of 0% p.a. for 18 months and an introductory purchase offer of 1% p.a. for 12 months with an annual fee waiver for the first year.
0% p.a. for 18 months 1% p.a. for 12 months (reverts to 12.74% p.a.) $99 p.a. Go to site More info
Westpac 55 Day Platinum Credit Card
Enjoy platinum benefits offering complimentary insurances, 24/7 concierge, balance transfer offer of 0% p.a. for 16 months, purchase rate offer of 1% p.a. for 12 months with $0 annual fee for the first year if applied by 11 October 2016.
0% p.a. for 16 months 1% p.a. for 12 months (reverts to 19.84% p.a.) $0 p.a. annual fee for the first year ($90 p.a. thereafter) Go to site More info
Citi Rewards Credit Card - Classic Card
Features complimentary rewards program along with no point expiry and a balance transfer offer.
0% p.a. for 12 months 20.99% p.a. $99 p.a. Go to site More info
Virgin No Annual Fee Credit Card
No annual fee for the life of the card with $100 cashback and a 0% p.a. offer on balance transfers for 18 months. Spend criteria applies for cashback offer.
0% p.a. for 18 months with 2% balance transfer fee 18.99% p.a. $0 p.a. Go to site More info
ANZ First Visa Credit Card
Enjoy a low annual fee, interest-free days on purchases and a low minimum credit limit.
0% p.a. for 18 months with 3% balance transfer fee 19.74% p.a. $30 p.a. Go to site More info
HSBC Platinum Qantas Credit Card
Receive 60,000 bonus Qantas Points on eligible spend within 3 months. Enjoy access to premium benefits and complimentary insurance.
19.99% p.a. $199 p.a. Go to site More info
Citi Rewards Credit Card - Platinum Card
Consolidate your debt with a low balance transfer offer that will also include your personal loan.
0% p.a. for 24 months with 1.5% balance transfer fee 20.99% p.a. $199 p.a. annual fee for the first year ($249 p.a. thereafter) Go to site More info
BankSA Vertigo Visa
A low interest rate card with a low annual fee, a long term balance transfer offer of 0% p.a. for 18 months and an introductory offer of 1% p.a. for 12 months on purchases.
0% p.a. for 18 months 1% p.a. for 12 months (reverts to 13.24% p.a.) $55 p.a. Go to site More info
Virgin Australia Velocity Flyer Card - 0% Interest Offer
Receive 0% p.a. for 12 months on purchases, 0% p.a. for 6 months balance transfers and an exclusive $129 Virgin Australia Gift Voucher every year.
0% p.a. for 6 months 0% p.a. for 12 months (reverts to 20.74% p.a.) $129 p.a. Go to site More info
Citi Clear Platinum Card
A platinum card with a low purchase and balance transfer offer of 0% p.a. for 9 months.
0% p.a. for 9 months 0% p.a. for 9 months (reverts to 14.99% p.a.) $99 p.a. Go to site More info
NAB Qantas Rewards Premium Card
Get 20,000 bonus Qantas Points plus enjoy a low promotional offer of 0% p.a. for 15 months on purchases and balance transfers.
0% p.a. for 15 months with a one off 2% balance transfer fee 0% p.a. for 15 months (reverts to 19.99% p.a.) $250 p.a. Go to site More info
NAB Personal Loan Unsecured Variable Rate

Debt Consolidation Personal Loan Offer

A flexible loan with a redraw facility and the ability to make extra repayments.

  • Interest Rate From: 13.69% p.a.
  • Comparison Rate: 14.56% p.a.
  • Interest Rate Type: Variable
  • Application Fee: $150
  • Minimum Loan Term: 1 year
  • Maximum Loan Term: 7 year
  • Minimum Loan Amount: $5,000
  • Maximum Loan Amount: $55,000

Debt consolidation with a personal loan

Rates last updated October 1st, 2016
$
Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Repayment
CUA Fixed Rate Personal Loan
A competitive fixed-rate loan with flexible repayments that can help you consolidate debt or make a large purchase.
From 11.99% (fixed) 12.83% $1,000 1 to 7 years $120 Go to site More
ANZ Fixed Rate Personal Loan
A flexible loan option that lets you pay off your debt, buy a car, fix up your house or cover travel costs.
From 13.95% (fixed) 14.81% $5,000 1 to 7 years $0 Go to site More
Latitude Personal Loan (Secured)
Can be used for whatever purpose: renovating, buying a car, booking a holiday. Funds can be in your account in as little as 24 hours.
From 12.99% (fixed) 14.2% $3,000 2 to 7 years $250 (Loans under $4000 - $140) Go to site More
MoneyPlace P2P Loan
Interest rates from 8.90% p.a to 17.25% p.a. Comp rates from 8.90% p.a to 19.01% p.a depending on your credit score.
From 8.9% (fixed) 8.9% $5,000 3 to 5 years (0% - 3.75% of loan amount) Go to site More
ANZ Variable Rate Personal Loan
A variable rate loan that lets you make and redraw additional repayments.
From 14.69% (variable) 15.55% $5,000 1 to 7 years $0 Go to site More
Fox Symes Debt Solutions
Consolidate your debt with a Fox Symes Debt Consolidation Solution. Fox Symes may be able to assist you to get back in control of your finances and start to reduce your debt whether it be your mortgage repayments, credit card, personal loan.
From (variable) Go to site More

How does debt consolidation work?

When you apply for a debt consolidation loan or product, such as a credit card or personal loan, you include details of the existing debts that you would like to transfer to the new account. When the loan is approved, your lender will roll these debts into one on the new account by paying out the other lenders you’ve been dealing with.

You’ll then make regular repayments of the balance, with just one interest rate applied to the debt. If your previous debts were due at different times and had different repayment amounts and interest charges, then this process can make your monthly bills easier to handle and eliminate your debt faster.

Who should consider debt consolidation?

Debt consolidation can be a more affordable way to manage multiple card and loan balances, but it’s not right for everyone. In general, consolidating debts could work for you in any of the following scenarios:

  • You have multiple debts on cards and loans.
  • You struggle to make all your repayments.
  • You’re paying varying rates of interest on your debts.
  • You want to pay off all your debts.
  • You want to start using just one credit card or loan for your expenses.
  • You’re in a financial position to request a new credit card or loan.

If some or all of these factors apply to you, then you may want to start reviewing different debt consolidation and repayment options.

Types of debt consolidation

There are many ways to consolidate your debt, including balance transfer credit cards, personal loans and home equity. Below, we’ve outlined the key debt consolidation and repayment options available when you want to use this method to pay off your debts.

1. Credit card balance transfers

Balance transfer credit cards allow you to transfer existing debts to a new card and usually provide a low or 0% introductory interest rate. The introductory period could last anywhere from 3 to 24 months depending on the card and can allow you to save even more money on interest charges while you pay off the debt.

At the end of the introductory period, any balance remaining from your debt consolidation will revert to a higher, standard variable interest rate. It’s important to pay off all or most of the balance during this time so that you can avoid paying higher interest rates that could increase your debt. Other factors to consider with balance transfer credit cards include:

  • The types of debts you can transfer. Most balance transfer credit cards will only allow you to consolidate debts from other credit cards that are issued by competitors, so they are usually best suited to people who have multiple card debts. But there are some companies – such as Citibank and Virgin Money – that also allow balance transfers from other loans.
  • The amount of debt you can consolidate. Balance transfer credit cards usually allow you to use up to a certain amount of your approved credit limit for debt consolidation. This could be anywhere from 70% to 100% of the total credit available, depending on the card and your personal circumstances. If your debt exceeds this amount, then you may only be able to transfer some of it to the new card.
  • Whether or not you’ll use the card for new purchases. Any new purchases made on a balance transfer credit card will attract interest charges at the purchase rate. This rate could be quite high compared to the introductory balance transfer rate. It also means that repayments will go towards paying off the debt from new purchases first, with any remaining amount going towards the debt you transferred.

Compare balance transfer credit cards

Rates last updated October 1st, 2016
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% p.a.

Your search criteria didn't return any products. Click to reset your filter options and search again
Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Interest Saved
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Offers 0% p.a. interest rate on balance transfers for 18 months to help you manage your existing credit card balance with a reduced annual fee in the first year.
0% p.a. for 18 months 20.74% p.a. $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
Westpac 55 Day credit card
Enjoy a balance transfer offer of 0% p.a. for 16 months, an introductory purchase rate of 1% p.a. for up to 12 months, plus a waived annual fee for the first year if applied by 11 October 2016.
0% p.a. for 16 months 1% p.a. for 12 months (reverts to 19.84% p.a.) $0 p.a. annual fee for the first year ($30 p.a. thereafter) Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
0% p.a. for 15 months 19.99% p.a. $149 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months with a one off 2% balance transfer fee 0% p.a. for 15 months (reverts to 13.99% p.a.) $59 p.a. Go to site More info
ANZ First Visa Credit Card - Exclusive Offer
Take advantage of this exclusive offer and enjoy 0% p.a. for the first 12 months on balance transfers and 0% p.a. for the first 3 months on purchases.
0% p.a. for 12 months 0% p.a. for 3 months (reverts to 19.74% p.a.) $30 p.a. Go to site More info

Ari’s debt consolidation process

Ari has three credit cards with balances worth $2,500, $3,000 and $3,500. He wants to start using just one card for all his payments and decides to get a balance transfer credit card to consolidate his current card debt of $9,000.

Ari compares cards and finds one that allows up to 90% of the approved credit limit to be used on balance transfers. It also offers 0% interest on balance transfers for the first 18 months. That means Ari’s credit limit for the new card must be at least $10,000 for him to successfully consolidate all of his card debt.

Ari decides to apply for the card and includes all the details of his existing credit card debts in his application. He is approved for a credit limit of $10,500 and his full balance transfer amount of $9,000. After he activates the card, his existing debts are transferred over to the new account. If Ari can make repayments of at least $500 a month, he will be able to clear his debt during the introductory period and avoid paying any interest.

2. Personal loans for debt consolidation

There are two main types of debt consolidation personal loans:

  • Fixed rate loans. These debt consolidation personal loans give you a competitive fixed rate of interest for the term of the loan. They also have a fixed repayment amount, which can help with budgeting for your debt, but may charge extra fees if you want to pay off your loan early.
  • Variable rate loans. These loans give you a competitive, variable rate of interest that may change over the term of the loan. While variable rate loans usually have a fixed repayment amount, many also have the benefit of no exit fees if you want to pay off your debt early.

Compared to credit cards, personal loans are more likely to allow you to consolidate debts from a variety of sources. They also tend to have lower standard variable interest rates than credit cards (not including introductory balance transfer rates). If you choose a secured personal loan, you may also be able to borrow a greater amount of money for debt consolidation, without the limits usually placed on credit cards.

Compare personal loans for debt consolidation

Rates last updated October 1st, 2016
$
Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Repayment
CUA Fixed Rate Personal Loan
A competitive fixed-rate loan with flexible repayments that can help you consolidate debt or make a large purchase.
From 11.99% (fixed) 12.83% $1,000 1 to 7 years $120 Go to site More
ANZ Fixed Rate Personal Loan
A flexible loan option that lets you pay off your debt, buy a car, fix up your house or cover travel costs.
From 13.95% (fixed) 14.81% $5,000 1 to 7 years $0 Go to site More
Latitude Personal Loan (Secured)
Can be used for whatever purpose: renovating, buying a car, booking a holiday. Funds can be in your account in as little as 24 hours.
From 12.99% (fixed) 14.2% $3,000 2 to 7 years $250 (Loans under $4000 - $140) Go to site More
MoneyPlace P2P Loan
Interest rates from 8.90% p.a to 17.25% p.a. Comp rates from 8.90% p.a to 19.01% p.a depending on your credit score.
From 8.9% (fixed) 8.9% $5,000 3 to 5 years (0% - 3.75% of loan amount) Go to site More

3. Home equity

If you have an existing home loan, this debt consolidation option allows you to draw money against the portion of your home that has been paid off (your “equity”). With home equity debt consolidation, you just need to apply for an extension on your existing mortgage and fill out a request to have your existing debts transferred over.

This type of debt consolidation appeals to a lot of people because home loans typically offer the lowest ongoing interest rates of any form of credit. But it will lead to higher monthly payments and could put your home on the line if you fail to make repayments.

Debt-Free-Keyboard-EnterKey

Which debt consolidation option is right for me?

If you’re thinking about consolidating your debts, it’s important to find the right product for your circumstances and needs. As well as learning about the different credit cards, personal loans and home equity options available, you should ask yourself the following questions:

How much money do I owe?
Add up the balances for all your current debts so that you know the total amount you owe. This will help you compare debt consolidation options and get an idea of the repayment amount you may get if you roll them into one account.

How much can I afford to pay off my debt each month?
Most personal loans and home equity options for debt consolidation require fixed repayments. Balance transfer credit cards, on the other hand, have a monthly minimum payment amount of around 2% to 3% of the balance, and allow you to pay more than this whenever you want. Consider which of these options will offer the most convenience for you, while also aiming to pay off your debt in the shortest amount of time possible.

What types of debts do I have?
This factor could affect the type of debt consolidation products available. For example, if you wanted to consolidate your debts with a balance transfer credit card but had debt from a car loan, your options could be much more limited.

What is my credit score?
Most balance transfer credit cards and unsecured personal loans require good to excellent credit scores. This means you could have trouble applying for one of these options if you have black marks, such as late payments or defaults, on your credit file. Make sure you consider this before you apply for a loan, so that you can reduce the risk of declined applications that could further damage your credit score. If in doubt, you may want to speak to a lender directly to discuss your options.

Risks of debt consolidation

While there are a lot of potential benefits to consolidating debts and repayments, there are also some risks that need to be considered before you take any action. Common pitfalls include:

  • Extending the time you’re paying off debt. If you choose a debt consolidation credit card or loan with a lower interest rate, there is a risk that you will end up paying off the debt for longer than necessary. Setting yourself a goal for paying off the debt and budgeting for repayments before you consolidate your debt can help you avoid this situation.
  • High interest rates. If you use a balance transfer credit card to consolidate your debt and don’t pay it off before the end of the introductory period, you could end up paying an ongoing interest rate on the outstanding amount that could be as high as 22% p.a.
  • Loss of assets. If you consolidate your debts with home equity or another form of security and then struggle to make repayments, you could risk losing your home or any other asset used to secure the loan.
  • Pressure to claim bankruptcy. Depending on your circumstances, lenders and credit issuers may also pressure you into claiming bankru
    ptcy. This isn’t always the ideal solution and you may want to see if there are any other options out there.

Get-out-of-debt-tornpaper

Other options for repaying debt

If you’re juggling multiple debts, it’s important to consider all of your options before choosing one that’s right for you. Apart from debt consolidation, there are two other key strategies you can use:

  • The “snowball” method.This option is when you pay off the smallest debt first so that you can clear the total on that account first. After that, you can focus on paying off the next-smallest debt, while continuing to meet minimum payment requirements for all your accounts. This strategy can help your overall credit history and gives you some breathing room by eliminating these bills.
  • The “highest interest first” method. If you have multiple debts and choose not to consolidate them, another option is to continue to make minimum payments on all of them while aiming to pay off the one with the highest interest rate first.This method will lead to lower repayments across the life of your existing balances.

Since different types of repayment methods work in different ways to achieve the same goal, it’s important that you pick the option that is suited for your personal financial needs. You don’t want to pick an option that will end up hurting you in the long run. Examine all of your options before selecting a debt repayment method and remember to consult a professional if you get overwhelmed or confused.

If you’re paying off a lot of credit cards and loans, debt consolidation could help you manage your repayments more effectively and allow you to save money on interest charges. Now that you know more about this option and the different debt consolidation credit cards and loans available, you can make an informed decision about how you deal with debt based on your individual circumstances and needs.

Frequently asked questions

Can I consolidate debt onto a credit card I already use, or will I have to apply for a new one?

Some credit card companies allow you to consolidate debts onto an existing card at any time when you fill out a balance transfer request form. This will be subject to a credit review and approval, and may not provide you with a low introductory interest rate for the balance. Contact your credit card provider for more information on how to do this. Alternatively, you may want to consider consolidating debts onto a new credit card so you can take advantage of a low balance transfer rate during the honeymoon period.

I am an average income earner with a mortgage of $600,000 and $10,000 in credit card debt. I have applied for several balance transfer credit cards and have been declined every time, even though I have never defaulted on any loans or credit cards. Do you have any other suggestions to help me pay off the credit cards?

The more credit enquiries you make, the worse it looks on your credit history. As a general rule of thumb, you should aim to make no more than 1 credit enquiry every 3-6 months.

Also, please remember to check the eligibility requirements for balance transfer credit cards before you. Most will say that you need a certain income to be eligible, and your salary may need to be higher to get approved for a limit of over $10,000. Our guide to paying back credit card debt may also be able to provide some options.

Can I use my superannuation to pay off my debts?

There’s no reason why you can’t use your superannuation to pay a credit card debt if you have access to it, but f you’re not at retirement age yet, there will only be limited options for you to access your super. In many cases it won’t be an option. You can read our guide on accessing your super early or refer to the Australian Taxation Office (ATO) for further information.

The lender will assess your financial situation when you submit your application. If you don’t currently have a source of income, it may be a sensible idea to wait till you’re employed before considering debt consolidation with a credit card.

What is the difference between debt consolidation and a repayment plan?

Debt consolidation refers to the process of combining your debts into one account. A repayment plan is a strategy or budget used to pay off one or more debts. Depending on your circumstances, you can choose to use both debt consolidation and a repayment plan or just one of these options to pay off your debt/s.

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HSBC Platinum Credit Card

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ANZ First Visa Credit Card - Exclusive Offer

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34 Responses to Debt Consolidation and Repayment

  1. Default Gravatar
    Johnppm | April 8, 2016

    I have a debt of $45,000 but only a net income of $1344 per fortnight. 2 credit cards, 1 @ 9.75% for $18,500 the other $26,500 @ 13.78% how should I consolidate?

    • Staff
      May | April 11, 2016

      Hi Johnppm,

      Thanks for your question.

      You can combine all of your current card debt into one new potentially low-interest credit card by doing a balance transfer. To apply for a balance transfer, go through the process of applying for a credit card. You may like to visit this page and compare your balance transfer credit card options.

      However, I would just like to mention that when you do a credit card debt consolidation / balance transfer, you’ll need to check how much credit limit you’ll be approved for as that will determine the total amount you can transfer to your new card. Depending on the card and institution, this limit could be 70% to 90% of the credit limit.

      Hope this is helpful.

      Cheers,
      May

  2. Default Gravatar
    DDT | August 18, 2015

    Hi,

    I have a personal loan and a credit card (total $4100 in debt) which I want to do a balance transfer to a credit card. Is it possible to transfer both the loan and the credit card into one? I understand Citibank and Virgin allow for loans to be transferred onto their credit cards.

    • Staff
      Jonathan | August 19, 2015

      Hi DDT, thanks for your inquiry.

      That is correct. Citibank and Virgin allow this type of balance transfer from a personal loan to credit card. If you wish to know more, please refer to our guide onthis page.

      I hope this helps.

      Thanks,

      Jonathan

  3. Default Gravatar
    Jessie | May 3, 2015

    i have a $20,000 loan with my current bank at commonwealth and am paying 17.9 percent pa so the loan is not going down at all over the past years i would like to apply for interest free card to pay off that $20,000 loan and pay 0% interest free for 24 months

    • Staff
      Jonathan | May 4, 2015

      Hi Jessie, thanks for your inquiry!

      At this point of time Virgin Money and Citibank allow balance transfers from personal loans to credit cards. Please note that both Citibank and Virgin Money only allow 80% of the available credit limit for balance transfers. Please refer to the following link for a list of credit cards from Virgin Money and Citibank you can compare on the balance transfer rate.

      Cheers,

      Jonathan

  4. Default Gravatar
    Liz | May 20, 2014

    Hi
    I am an average income earner with a high mortgage. I also have $20k on credit debt. I have applied for several balance transfers and have been declined every time even though I have never defaulted on any loans or credit cards. I can only manage minimum repayments which is mostly interest. As I appear not to be eligible for any balance transfer, do you have any suggestions to help me pay off the credit cards?

    • Staff
      Shirley | May 22, 2014

      Hi Liz,

      Thanks for your question.

      As a general rule of thumb, one credit enquiry every 3-6 months is considered as a good credit history. The more enquiries you make, the worse it looks on your credit history.

      Also, please remember to check the eligibility requirements for the cards you apply for. Most will say that you need a certain income to be eligible.

      Our article on paying back credit card debt may be able to provide some options.

      Cheers,
      Shirley

  5. Default Gravatar
    Andrew | March 23, 2014

    Hi we saw your add on TV New Zealand can we
    apply for a Citibank debt consolidation credit card.

    Regards Andrew

    • Staff
      Jacob | March 24, 2014

      Hi, Andrew.

      Thanks for your question.

      You can compare Citibank credit cards on this page. Please refer to the application requirements on each card’s review page for information about eligibility. Generally, these cards are available to permanent Australian residents only.

      I hope this helps.

  6. Default Gravatar
    | March 11, 2014

    Hey, Jacob.

    I have $16,000 credit card debt. One $10,000 and other one is $6,000. I had default since one year as I had miss my phone bill($350) but this one I clear it out as i realized they put me in bad credit. I have stable employment history. How can I Fast way pay debt, can I use my super to pay this debt?

    Thanks.

    • Staff
      Jacob | March 12, 2014

      Hi, Billy.

      Thanks for your question.

      If you have a default listing on your credit file, and you wish to apply for a credit card, you will need to make sure the default has been paid, and you will need to provide proof of payment to the bank when you apply for the credit card. You will need to do this in person at a bank branch.

      You can consolidate the balance of multiple credit cards, however, you can only do this is the amount you wish to transfer is less than your approved credit limit.

      You can find some important information on transferring a balance on this page.

      There’s no reason why you can’t use your superannuation to pay a credit card debt. The problem comes with getting access to your superannuation before retirement. You can do this in some circumstances though, please refer to the Tax Office for further information about this.

      Please let us know if you have any further questions and I hope this helps.

  7. Default Gravatar
    Irene | February 12, 2014

    I am on a disability pension is the credit card that I can get so I can pay some bills?

    • Staff
      Jacob | February 13, 2014

      Hi, Irene.

      Thanks for your question.

      The important thing is that you meet the minimum application requirements for the card. The eligibility criteria can be found at the bottom of each credit card’s review page.

      Please have a look at our low rate credit card comparison page. These cards have the lowest income requirements out of all the cards that we compare.

      Please let us know if you have any further questions.

  8. Default Gravatar
    Jo | December 13, 2013

    I have a credit card debt of $4000 and have lost my job. Will another credit card provider take my application with 0% interest if I apply at the moment or should I just persevere. with my current CC provider?

    • Staff
      Jacob | December 13, 2013

      Hi Jo.

      Great question.

      The lender will assess your financial situation at the time of application. If you’ve lost your job, and currently don’t have a source of income, it may be a sensible idea to wait till you’re back in employment. If you do manage to get approved for a card, due to your reduced income, it may not be enough to cover a balance transfer of the full amount.

      I hope this helps.

    • Default Gravatar
      Jo | December 13, 2013

      thanks I thought that might be the case but no harm in asking cheers

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    Rachel | July 2, 2013

    Can the balance transfer offers be used for consolidating overdraft debt?

    • Staff
      Jacob | July 3, 2013

      Hi Rachel. Thanks for your question. Citibank and Virgin allow you to transfer a personal loan or a line of credit to one of their credit cards. They are more flexible than other lenders who only allow you to transfer balances from credit cards, store cards or charge cards. Jacob.

  10. Default Gravatar
    Vanessa | May 1, 2013

    Do any of the cards allow you to transfer an overdraft as well as normal credit balances. I have a business account i wish to close if i can transfer the overdraft to a card

    • Staff
      Jacob | May 1, 2013

      HI Vanessa. Thanks for your question. You may want to consider a Citibank credit card. Citibank (and Virgin, who Citibank underwrites) allow you to transfer lines-of-credit and personal loans as well as store cards and credit cards to their accounts. Jacob.

    • Default Gravatar
      Vanessa | May 1, 2013

      Hi are there any others i can look at in relation to my other question

    • Staff
      Jacob | May 2, 2013

      Hi Vanessa. If you’re referring to transfer an overdraft account and a credit card, Citibank are likely to the institution to go for, Citibank and Virgin are the only two institutions that currently allow the consolidation of personal loans and lines-of-credit . However, you may want to try and consolidate with a business loan. If the credit card is for personal use and the overdraft is for business use, it may be difficult consolidating the loan under one or the other’s name. Jacob.

Credit Cards Comparison

Rates last updated October 1st, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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