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When it comes to your money and your debt, everyone is different. Some people only have one credit card to manage, whereas others have several – and this is before we even consider other types of debt such as personal loans, unpaid bills and car repayments.

Managing multiple debts can be difficult, but it can be even more difficult during a cost-of-living crisis. Especially if you feel like all your income is being used to pay off debts and you’re unable to save as much as you would like to.

If you’re juggling multiple monthly repayments and want to take control of your finances, debt consolidation may be a good option for you. It could help you save some money, too!

What is debt consolidation?

Put simply, debt consolidation combines all your existing debts together in one loan: usually a personal loan. By taking out a new personal loan, you can pay off your other balances owing and reduce the number of repayments you must make.

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For example, say you have three credit cards with debts of $2,000, $3,000, and $4,500, all from different banks, all with different interest rates, repayment amounts and due dates. That’s a lot to keep track of and that’s before you add any existing personal loans you may already have to the mix!

By simplifying your debt into one personal loan, you’ll only have one interest rate to think about and one repayment to make each period. Personal loan interest rates are usually lower than credit card rates too, so you may find that your repayment amount is less. Plus, the term of your new loan could mean you have longer to pay off your debt and this could in turn reduce your repayment amount, too.

Is debt consolidation for me?

As with anything relating to your finances, you need to thoroughly think debt consolidation through before taking the leap. To help you make an informed decision about taking out a personal loan for debt consolidation, consider these pros and cons:


  • One recurring repayment.
  • One interest rate (usually fixed not variable).
  • Greater control of your budget and cashflow.
  • More time to pay off your debt (term dependant).


  • A longer term could mean you pay more over the life of the loan.
  • Like with all loans, your credit score could be impacted if you fail to make your repayments.
  • Minimum borrowing amount may be higher than you need.

What’s the first step?

One of the first things you can do is to “do the maths”. Review all your debt and calculate how much you owe now. Also, look at how long it is expected to take you to pay off your debt, how much you’re paying in additional fees and charges, and how much interest you’re paying (and are expected to pay over the life of the loans). This way, you will have a full understanding of what lies ahead and whether a debt consolidation loan is right for you. You may find that with a debt consolidation loan, you’ll be able to eliminate unnecessary fees and charges at a minimum.

Use our personal loan repayment calculator to see how much your repayments could be, the difference the loan term can make to how much you pay, and what impact paying weekly instead of monthly could have.

How could a P&N Bank personal loan help me?

Our Unsecured Personal Loan is a fixed rate loan that offers you a choice of loan term (from one to seven years). You’ll know exactly how much your repayments will be and won’t need to worry about rate changes. We don’t charge you fees for making extra repayments to your loan, so if you want to pay it off sooner, you can do that without penalty. And, if you do make extra payments, we give you the ability to access that money and redraw it – easily!

Applying for a personal loan from P&N Bank is simple. You can apply online, call our friendly team on 13 25 77 or visit your nearest branch.

Banking and Credit products issued by Police & Nurses Limited (P&N Bank) ABN 69 087 651 876 AFSL/Australian Credit Licence 240701. Any advice does not take into account your objectives, financial situation or needs. Read the relevant Product Terms and Conditions, before acquiring any product in considering and deciding whether it is right for you. The Target Market Determination (TMD) for our products are available on our website.