Credit Card Debt Consolidation With Monzi

With credit card debt consolidation you can roll your debts into one, easy-to-manage loan. Struggling to keep track of your credit card debt? Apply through Monzi and we may be able to pair you with a lender offering personal loans for debt consolidation up to $10,000. That means one repayment, one interest rate, one loan. Apply today!

What is a credit card debt consolidation loan?

Have you found yourself buried in credit card debt? Have you got more than one card and multiple accounts to keep track of? Credit card debt consolidation could be an option for you.

In short, you’ll take out a personal loan and use that cash to pay off your outstanding debts. As a result, you are left with one, fixed-term personal loan to repay.

It’s all about making it easier to repay your debt. Instead of monitoring multiple accounts, you will only have to worry about one loan, one interest rate and one repayment. As a result, you have a clear path to being debt-free.

Through Monzi, you can apply for debt consolidation loans up to $10,000 and we’ll do our best to pair you with a lender. Apply today.

Credit card debt consolidation and Monzi

When you’re seeking debt consolidation loans, Monzi may be able to help you find them. We’re a lender-finder service which means we pair everyday Aussie borrowers with a range of potential lenders.

All it takes is one simple application. Applying during business hours and you may be paired with a lender in just 60 minutes. Not only that, you can potentially consolidate up to $10,000 worth of debt.

In short, Monzi may make it quick and easy to find finance. If you decide that debt consolidation is right for you, then consider applying with Monzi. We’re ready and waiting to receive your application today.

Debt consolidation credit card

While we’ve discussed personal loans for debt consolidation, that’s not your only option. You can potentially use a credit card for debt consolidation too.

This is known as a balance transfer. In short, you transfer your outstanding credit card debt onto a single card, typically at a lower interest rate. As a result, you can reduce your interest payments and you only have to worry about paying off one card.

While we cannot say which is the best credit card for debt consolidation, it pays to shop around. Compare a range of credit cards to find the most competitive rate.

Where can I find a lender offering consolidation loans?

There are a host of lenders who will offer debt consolidation loans. In fact, as we’ve mentioned, you can potentially access debt consolidation loans up to $10,000.

However, the tricky part is finding the lender that’s right for you. You could spend hours applying with different lenders only to be declined.

If you apply through Monzi though, we might be able to make it simple.

All it takes is one quick application and we may be able to pair you with one of our many licenced and trusted lenders in no time. They’ll aim to assess your application quickly too, so you might have an outcome before you know it.

When you’re ready to apply, just use the Monzi’s loan slider at the top of the page. Alternatively, read our guide to comparing different consolidation loans.

Credit card debt consolidation calculator

Keen to know what your repayments may be? With a debt consolidation loan calculator, you may be able to access quick and free repayment estimates online.

These calculators are offered by a range of banks, financial institutions and lenders. Do a quick online search and you’ll discover that you aren’t short on options.

From there, just enter all the required information. This will include your outstanding debts, the amount you are borrowing, your repayment term and interest rate. Subsequently, you’ll get an estimate of your total loan cost and repayments.

However, keep in mind that this information is only a guide and is non-binding. Actual repayments may vary.

Am I eligible to apply with Monzi?

Think Monzi’s lender-finder service is right for you? We’re ready to accept your application.

However, before you begin, make sure you meet our four eligibility criteria. While they may seem simple, they are absolutely necessary. Check them out:

  • 18 years or older
  • Australian citizen or permanent resident
  • Have a current email address and contact phone number
  • Hold an online banking account with at least three months of history

How to apply with Monzi

Now that you’ve confirmed that you are eligible, you’re welcome to apply. At Monzi, we’ve refined our process to ensure it’s quick and easy for you. Just follow these simple steps:

  1. Use Monzi’s loan slider to select your loan amount and repayment term (where applicable).
  2. Enter the required personal, banking and financial information and submit your application.
  3. Wait while our automated system attempts to pair you with an available lender from our network.
  4. If successful, the lender will be in contact to begin the assessment process.

Small, medium and large debt consolidation loans

At Monzi, we work with lenders who may offer credit card debt consolidation loans from $300 to $10,000. With the wide range of loan products on, lenders divide them into three categories, based on size.

Each loan is slightly different so it’s important to know which one you will be applying for before you begin. See below for more details:

Small loan$300 to $2,000Unsecured12 month repayment period
Medium loan$2,001 to $4,600SecuredRepaid over 13 to 24 months
Large loan$5,000 to $10,000Secured13 to 24 month repayment term

Credit card debt consolidation loans Australia bad credit

Think bad credit will limit your consolidation options? It may not.

While in the past, finding a lender willing to help may have been difficult, things are different now. Specifically, Monzi works with lenders potentially able to offer loans to bad credit applicants.

While your credit history may be part of the assessment, they’ll look at your outstanding debts as well as your income and expenses in order to get an idea of your financial situation.

From there, they can determine debt consolidation is a suitable option for you.

However, keep in mind that lenders view bad credit loans as risky. As a result, they may come with higher interests.

Is it a good idea to consolidate credit card debt?

In short, this depends on your financial situation. As a result, we are unable to provide any advice.

Ultimately, debt consolidation could be an option to help make it easier to manage your debt. After all, it will leave you only one loan to keep track over.

However, before you apply, there are a few things to consider.

First of all, ensure you will be paying less after you consolidate your debt. Second, take note of any early exit fees that may be charged on your credit card debts. Finally, make sure that your debt consolidation loans are manageable and affordable.

If you can check these boxes, then debt consolidation may be an option for you.

How long does debt consolidation stay on your credit report?

Settled accounts (i.e. debts you’ve repaid) may stay on your credit report for seven years.

More interestingly, it is worth considering the impact of debt consolidation on your credit score.

In the short-term, a debt consolidation will lower your credit score given that it is a new credit account. This will reduce the average of accounts.

However, in the long term, debt consolidation loans can potentially help improve your credit history. Although, for this to be possible, you must make your repayments on time and keep your debt on schedule.

If you miss repayments or default on your debt then your credit score may suffer.

Can I put all my credit card debt into one card?

Yes, it may be possible.

As we’ve mentioned it is possible to consolidate your credit card debt through a balance transfer. Typically, this involves transferring your debts onto a new card with a lower interest rate.

Unfortunately, at Monzi, we are unable to offer this product and cannot provide any advice. In short, we work with lenders offering personal loans for debt consolidation up to $10,000. This is another possible option you could use.

However, if you opt to go with a credit card balance transfer then you will need to do your own research to find the card that works for you.

What is the difference between credit card refinancing and debt consolidation?

Credit card refinancing (or a balance transfer as we’ve referred to it as) and debt consolidation are two options to make it easier to manage debt. However, they are very different.

As we’ve already discussed, credit card refinancing simply involves moving your credit card debt from one card to another. In order to take advantage of more favourable terms (e.g. a lower interest rate).

By comparison, debt consolidation involves rolling your credit card debts into one manageable person loan. This loan comes with a fixed term so you know when your debt will be repaid.

While it is not always the case, credit card refinancing tends to be about accessing a lower rate. However it is usually less effective than debt consolidation at getting you out of debt.

Credit card debt consolidation hand holding black card

What is a good interest rate on a consolidation loan?

This will depend on your loan and financial situation. As a result, Monzi is unable to say what a good rate may be. Moreover, a good rate for you may be different to another borrower.

In any case, it’s worth considering what lenders look at in order to determine your interest rate. That way you can potentially take steps to access a better rate.

While not a comprehensive list, lenders typically consider the following:

  • Your credit history: higher interest rates are often applied to bad credit loans.
  • Secured or unsecured: secured loans come with lower risk which means they may be offered at lower rates too.
  • Loan amount: if you’re consolidating a large debt then your rate may be different to some consolidating a small debt.

Credit card debt consolidation considerations

Debt consolidation may be an option to help reduce your stress and make it easier to manage your repayments. However, before applying, ensure you have considered the following:

  • Will I be paying less after I consolidate my debt?
  • Should I get a secured loan?
  • Are there other options that would suit my needs better (e.g. balance transfer)?
  • Have I sought out qualified financial advice?
  • Who is the lender? Are they trustworthy? Are all the key details clearly outlined for me?

Visit the MoneySmart article on debt consolidation and refinancing for more information. It may provide all the information you need to know.

Why Monzi?

Monzi’s lender-finder service can make it simple and convenient to access lenders offering debt consolidation loans online. However, that’s not it. There are a host of other benefits that you’ll experience when you apply with Monzi.

Check it out:

We’re 100% online

With Monzi, there are no physical locations. We’re an online business only. That means, as long as you have an internet connection, you can apply whenever and wherever you like. Best of all, there’s no paperwork or face to face meetings required. You can apply and be approved all from the comfort of your own home.

Fast outcomes

If you apply during business hours, we might have you paired with a lender in just 60 minutes. From there, your lender will waste no time assessing your application so you can have an outcome ASAP. Ultimately, it’s about getting you the cash you need in a hurry.

Safe and secure

Our online system is protected by McAfee and Comodo, two powerhouses in the cyber security world. As a result, when you provide us your details, you can be sure that it’s safe with us.

A commitment to transparency

We’ve outlined our process so you know what will occur at each step along the way. As a result, there’s no mystery and you can be totally comfortable with Monzi. Our lenders are the same way too.

When you are offered a loan, all the rates, fees, costs and repayments will be outlined in your contract. As long as you read it carefully, you won’t encounter any surprises along the way.

Contact us

At Monzi, we’re always willing to answer your questions. Send them through to hello@monzi.com.au and one of our customer service team members will get back to as soon as they can. However, keep in mind that this email is only monitored during business hours.

Apply now

Ready to consolidate your credit card debt? Scroll and use Monzi’s loan slider to apply today.

Factor In

Costs

Two credit cards
Two credit cards

You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000

Terms

12 months

Costs

20% upfront establishment fee

+ 4% monthly fee

Example

Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate

Loan amount

$2,001 - $4,600

Terms

13 months

24 months

Costs

48% annual percantage rate

67.41% comparison rate p.a.

Example

Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Interest Rate for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Loan amount

$5,000 - $10,000

Terms

13 months

24 months

Costs

21.24% annual percantage rate

48% comparison rate p.a.

Example

Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Interest Rate for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.