Rolling credit cards and car loans into your home loan can cut the rate. The calculator shows whether it also cuts the total interest, or just stretches it out.
Your numbers
Estimate
| Debt | Balance | Cleared in | Interest |
|---|
Keep separate
Consolidate, same repayments
Consolidate over loan term
Estimates only, on the assumptions shown. Nothing you enter is stored or sent. Not a quote, and not financial or tax advice.
Home › Calculators › Debt Consolidation Calculator
A warning appears when the third option costs more in total interest than keeping the debts separate. Enter up to four debts.
Illustrative figures only: a $10,000 card at 20% with $300 a month, a $25,000 car loan at 9% with $520 a month, and a 6% home loan with 25 years left.
| Option | Monthly | Cleared | Total interest |
|---|---|---|---|
| Keep separate | $820 | 50 and 60 months | About $10,800 |
| Consolidate, same repayment | $820 | 49 months | About $4,500 |
| Consolidate over 25 years | About $226 | 25 years | About $32,700 |
The lower rate only helps if the repayment stays up. Spread over 25 years, the same $35,000 costs about three times the interest of keeping the debts separate.
Consolidating also turns unsecured debt into debt secured by your home. If repayments are missed later, the home is at risk, not just your credit file. Closing cleared card accounts stops the balances building again.
Consolidated debt is private debt, so its interest is generally not deductible. It belongs in its own split, away from any investment borrowing, so the records stay clean.
If you need consolidation to manage repayments, debt recycling may not suit yet. Adding investment debt while consumer debt is being cleared puts more strain on a stretched budget. Our article on clearing consumer debt before debt recycling covers the order.
For the lending side, see debt consolidation home loans.
Alex can check your loan, your equity and your borrowing capacity, and tell you what the lending side would look like.
Request a call with Alex →It saves interest only if you keep repaying at a similar pace. The home loan rate is usually lower than card or car loan rates, but spreading the balance over 20 or 30 years can cost far more in total interest. Fees to refinance or break fixed loans also count. The calculator compares both outcomes.
It can. Consolidation uses equity and raises your home loan balance, which leaves less room for an investment split. Lenders also look closely at recent consumer debt when assessing new borrowing. Many people clear consolidated debt first, then start recycling once the budget has room.
Talk to your lenders early, as they have hardship processes. The National Debt Helpline on 1800 007 007 offers free, confidential financial counselling. A consolidation loan can help in some cases, but it is not the right first step for everyone, and new borrowing may not be approved while repayments are being missed.
See repayments on a higher home loan balance after consolidating.
Read more → GUIDEWhy private and investment debt belong in separate splits.
Read more → RESOURCECheck whether your budget and equity are ready to recycle.
Read more →
1. Arranged a loan when our small business situation made it difficult to qualify.
2. Met requirements to have funding available by a specified date.
3. Understood my needs to setup debt recycling to allow tax structuring.
4. Communicated well throughout.
I would use their services again.
Alex, Jess and the Kingfisher team were second to none and their process from start to finish was faultless. As a self-employed business owner, it can be difficult to obtain finance at the best of times. The Kingfisher team made this an easy and efficient proposition and their continued transparent and efficient communication ensured we were kept up to date at all times. Highly recommend them for your finance needs!
Alex and Jess dealt with our investment loan and provided a top tier service. They kept us up to date and communicated every step of the process making it a seamless and smooth experience! Awesome work team we will definitely be back for future loans!
Jess from Kingfisher was outstanding. I couldn't fault her communication, expertise or dedication to finding the best loan for our situation. The entire process was seamless from start to finish. We'll definitely be using Kingfisher again in the future. A top-tier organisation.
