Combine Your Credit Cards into One Loan

Credit Card Debt Consolidation

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Consolidate Your Credit cards into Just 1 repayment

One credit card can be a handful let alone multiple credit cards. When you have many cards, with different rates, limits, interest free periods and late fees, effectively managing your money can be a bit tricky. This is where credit card debt consolidation can be super helpful.

At ALC we help our customers move into a credit card debt consolidation loan, with just one repayment for all of your debts. This makes it much simpler to remain on track, saves time and stress about which card and how much is due. Let Australian Lending Centre find help a credit card consolidation loan by applying online or reaching out on  1300 138 188.

3 Steps Toward Credit Card Debt Consolidation

Money smart tips

Tips For Credit Card Debt Consolidation

Set yourself up for a debt-less lifestyle! We have been helping Australians through the consolidation process for over a decade, we know what it takes to get you the best deal and we strive to get you debt relief fast!

Consolidate credit card debt
Collect information about your debts

To get ahead of credit card debt, you must face how much debt you have. As hard as it is, look at your statements to workout how much do you owe on each debt and check the interest and fees on each credit card debt.

how much can you pay each month?
How much can you pay monthly?

It's vital that you to work out your income and where your money. You can use ALC's Free Budget Planner Tool to determine how much you can realistically afford to pay each month.

apply online for credit card debt consolidation
Apply For A Debt Consolidation Loan

While it is stressful to do you now know how much debt you owe and what you can afford to put todays debt repayments each month. Our application process is simple and we will help you with options.

Consolidate Credit Card Debt with Home Equity

Home Equity Credit Card Debt Consolidation

One of the most cost-effective techniques to consolidate credit card debt is to use the equity in your home – by refinancing your mortgage and taking advantage of lower interest rates, credit card debt consolidation can be achieved quickly. This not only makes repayments both easier and more manageable but allows you to substantially reduce the amount of interest you pay overall.

Why Get Credit Card Debt Consolidation

Credit card consolidation loans are perfect for those who need to consolidate multiple credit cards, store card debt and personal loans, as they can drastically reduce the amount of interest you pay to service each debt.

Example of Credit Card Debt Consolidation

Take for example a credit card debt of $5,000. If you pay the minimum repayment of 2%, it could take you up to 36 years to pay it off and you could pay over $15,000 in interest. With a credit card consolidation loan from the Australian Lending Centre, you could pay this $5,000 back in a little over 2 years for around $60 per week, with interest charges in the low hundreds instead of thousands of dollars

Pay Debt in Order of Priority

Pay Credit Card Debt in Order of Priority

This is a popular strategy, helping people get out of debt faster. If you have multiple credit cards or personal loans to pay, the idea is to pay more towards the debt that charges the highest interest rate, followed by the second highest and so on. By doing this, you can minimise the total amount of interest paid in servicing the debt in an organised way. 

Credit Card Consolidation with a Balance Transfer

Another way to achieve credit card consolidation is to take advantage of credit card balance transfer offers by rolling multiple cards onto one. There are several credit card consolidation offers at present, offering a 0% interest rate on the balance transferred for up to 6 months, followed by a lower-than-usual interest rate of around 12.5% thereafter. It’s important to take advantage of the low interest period on all credit card consolidation offers, as some will return to an interest rate similar to that which you were trying to avoid by consolidating credit cards in the first place.

Credit Card Consolidation with a Balance Transfer
Cut up your credit cards

Cut Up Your Credit Cards

Another way to achieve credit card consolidation is to take advantage of credit card balance transfer offers by rolling multiple cards onto one. There are several credit card consolidation offers at present, offering a 0% interest rate on the balance transferred for up to 6 months, followed by a lower-than-usual interest rate of around 12.5% thereafter. It’s important to take advantage of the low interest period on all credit card consolidation offers, as some will return to an interest rate similar to that which you were trying to avoid by consolidating credit cards in the first place.

Credit Card Debt Consolidation Loan FAQ's

If you have bad credit then you can still apply for credit card debt consolidation, however the terms of the loan will not be as favourable. Your bad credit reflects your past borrowing history so lenders may class you as ‘high-risk’. This means that interest rates are likely to be higher and you may be required to secure your loan against a personal asset, such as your house or car.

As long as you make repayments on time and don’t miss repayments then credit card debt consolidation loans can actually boost your credit rating! Entering into a repayment plan and making repayments on time looks great on your credit report as you prove that you are a responsible borrower.

Juggling multiple loans can be really hard to manage. It can be confusing, expensive and time-consuming keeping on top of all your different debts. Consequently, many people fall behind on repayments and as a result, become a victim of bad credit. Debt consolidation helps to take these complications away. Having 1 single repayment plan in place with credit card debt consolidation makes keeping on top of payments much easier, can improve your credit rating and can actually save you money.

Your credit rating may take a minor setback at the initial point of applying for a debt consolidation loan. This is because many lenders put a hard credit inquiry on your credit report when you first apply for a loan. However, in the long term you can expect your credit rating to benefit as a result of credit card debt consolidation.

Pay your bills on time – An obvious one, but paying your bills on time will make sure you don’t fall behind on repayments to the point where they become out of control. Making your repayments on time also means that your credit score won’t fall. If anything, it will rise if you are responsible with your repayments.

Maintain a low credit utilisation ratio – Your credit utilisation ratio is the amount that you owe in comparison to your total credit limit. Experts claim that anything between 0% – 30% is a good credit utilisation ratio. The lower the amount you owe, the better the impact on your credit score.

Budget effectively – Create a budget to gain a greater understanding of your finances. If you understand when and how much money is coming in and out each week then you’ll be better prepared to take on your debts.

Don’t spend above your means – No matter how tempting that new pair of shoes or that shiny new car looks, if it means spending above your means so you cannot afford to pay off your debts then think again.

Set money aside for emergencies – Putting a portion of your income aside each week will help to cover ay unexpected bills or unplanned expenses that you might face at some point down the line. Even if the unexpected doesn’t happen, it is good to know you are covered in case it does. This way, you won’t have to neglect your loan repayments or apply for more finance if you do need some extra cash fast.

Make spending plans – Planning your spending out is a great habit to get into. Writing out your grocery list and sticking to it, rather than making impulse purchases is a great way to start. Setting aside spending money is also a great habit to get into so you know exactly how much you have available to spend and how much should remain untouched. Have a big event coming up? Plan your spending around it in order to cater for it.

Yes, although it depends on your situation. If you have good credit and a limited amount of debt, you probably won’t need to close your existing accounts. You can use a balance transfer or even a debt consolidation loan without this restriction. Getting a balance transfer credit card never comes with restrictions. If you get approved for the card, the creditor will not require you to close your other cards.

After going ahead with credit card debt consolidation and bringing the amount owed to your credit card providers down to $0, it’s not recommended to cancel your credit card accounts.  Having a zero-balance credit utilisation ratio will boost your credit rating.

If you do close your credit accounts off then your available credit will shrink, lowering your credit utilisation ratio and if you need to access finance in the near future, it will be a much harder if you have to go through the process of applying for & being approved credit cards again.

If you find yourself being too tempted with your credit cards still being available then lock them or store them away somewhere safe to avoid the temptation. Do you have issues with controlling your spending or living beyond your means? If so, you need to address these problems before looking to enter into a finance agreement such as a debt consolidation loan. Otherwise, you could face serious financial problems later down the line. Without controlling your spending, you could end up with a high level of outstanding debt again before too long.

Yes, although it depends on your situation. If you have good credit and a limited amount of debt, you probably won’t need to close your existing accounts. You can use a balance transfer or even a debt consolidation loan without this restriction. Getting a balance transfer credit card never comes with restrictions. If you get approved for the card, the creditor will not require you to close your other cards.

After going ahead with credit card debt consolidation and bringing the amount owed to your credit card providers down to $0, it’s not recommended to cancel your credit card accounts.  Having a zero-balance credit utilisation ratio will boost your credit rating.

If you do close your credit accounts off then your available credit will shrink, lowering your credit utilisation ratio and if you need to access finance in the near future, it will be a much harder if you have to go through the process of applying for & being approved credit cards again.

If you find yourself being too tempted with your credit cards still being available then lock them or store them away somewhere safe to avoid the temptation. Do you have issues with controlling your spending or living beyond your means? If so, you need to address these problems before looking to enter into a finance agreement such as a debt consolidation loan. Otherwise, you could face serious financial problems later down the line. Without controlling your spending, you could end up with a high level of outstanding debt again before too long.

If credit card debt consolidation isn’t the finance solution for you, then Australian Lending Centre has a wide range of other financial products which might be more suited to you. If you want to avoid receiving a credit enquiry when first applying for a debt consolidation loan, then a no credit check loan might be of interest to you. This type of loan usually comes with higher interest rates and lower loan amounts; however, you can get funding fast with no credit check loans. Another loan option which might be useful is a low doc loan. If you don’t have the documentation required by traditional banks then low doc loans give you the opportunity to still get finance with minimal paperwork.  If you have bad credit and would like to clear your credit file and improve your credit score before applying for a debt consolidation loan then we recommend that you get in touch with Clean Credit and request credit repair support.

Credit card debt consolidation is a great way to take control of your finances. It can be easy to lose track of your repayments and see your debts mount up. Credit card repayments are also confusing. It can be hard to work out how much you need to pay each month and it can also be hard to remember to make the repayment. Each credit card also often has a different interest rate which can make things even more complicated. There are so many numbers and percentages, yet no clear payment structure.

68% of Australians Have Credit Cards

In 2019 The Total Spent on Credit cards was $333,721,838,132

Cardholders in the Age Group 18 - 34
41%
One Credit Card
21%
Two Credit Cards
6%
Three Or More Credit Cards
Cardholders In the Age Group 35-54
45%
One Credit Card
20%
Two Credit Cards
8%
Three Or More Credit Cards
Cardholders In the Age Group 55+
47%
One Credit Card
20%
Two Credit Cards
7%
Three Or More Credit Cards

*According to Finder’s latest Consumer Sentiment Tracker data, 68% of Australians say they have a credit card, with younger generations slightly more likely to have additional cards.

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