Personal loans for debt consolidation

Compare personal loan options to consolidate your debts into one payment.

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Debt consolidation can help reduce your interest rate and fees by combining your existing loans and debts into one. Avoid the stress of dealing with multiple rates and fees so you can focus on paying off your debt more quickly.

Harmoney Debt Consolidation Loan

Harmoney Debt Consolidation Loan


6.99 % p.a.


  • Borrow from $2,000
  • 100% online
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Harmoney Debt Consolidation Loan

Apply today to consolidate your debt within minutes with an unsecured loan for up to $50,000.

  • Max. loan amount: $50,000
  • Loan term: Up to 60 months
  • Turnaround time: Approval within minutes, 99% of approved online applications funded in 24 hours
  • Fees: Establishment fee of $200 for loans from $2,000-5,000, and $450 for loans from $5,000-50,000
  • No early repayment fees
  • Personalised interest rate based on your circumstances
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Compare personal loans for debt consolidation

Name Product Interest Rate (p.a.) Min. Loan Amount Max. Loan Amount Loan Term Monthly Service Fee Application Fee
Harmoney Debt Consolidation Loan
6.99% - 29.99%
Up to 60 months
$200-$450 depending on loan size
Consolidate your debt with an unsecured loan from $2,000 to $50,000. Eligibility: Be a NZ resident/citizen, hold a valid NZ drivers license/passport, have a good credit score.
NZCU South Debt Consolidation Loan
8.90% - 27.90%
Up to 7 years
Combine your loans up to $60,000 to help consolidate debt and save on interest. Eligibility: Be an 18+ permanent NZ resident or non-resident on a working visa, earn $500+ weekly.
QuickLoans Debt Consolidation Loan
9.95% - 23.95%
Up to 36 months
$95-$595 depending on loan size
Consolidate your debt with an secured loan up to $20,000 and apply online within 5 minutes. Eligibility: Be over 18, hold permanent NZ residency, have collateral/security, earn at least $450 per week.
Admiral Finance Debt Consolidation Loan
13.95% - 23.95%
Up to 60 months
$125-$595 depending on loan size
Consolidate up to $50,000 in debt with a flexible payment schedule and no late payment penalties.Eligibility: Be an 18+ permanent NZ resident, have collateral/security, earn at least $450 per week.
Nectar Personal Loan
8.95% - 29.95%
Up to 4 years
Unsecured loans from $1,000 with payouts made within one day of approval. Applications entirely online. Eligibility: Must be 18+, an NZ citizen or permanent resident, and have an income of $350 per week or more (after tax).
Kiwibank Personal Loan
13.95% - 18.95%
Up to 7 years
$240, $0 for Graduate Pack customers
BNZ Advanced Personal Loan
12.65% (students/graduates) - 17.85% (standard)
Up to 5 years
ANZ Personal Loan
Up to 7 years

Compare up to 4 providers

How does consolidating debt with a personal loan work?

Debt consolidation allows you to combine all your loans into one. Essentially, it can give you a way to reduce your interest rates and fees, thereby giving you a way to get yourself out of debt. If you choose to consolidate your debt, you’ll have one loan repayment to worry about rather than several.

A debt consolidation loan offers reduced interest and fees, but it’s important to also consider refinancing costs and early payout fees from your existing loans to see if the cost of consolidating is more than the money you’ll save.

People normally take this road to minimise their ongoing expenditure and make their credit more manageable. For example, if you owe $2,000 on your credit card, $2,000 on a store card and $6,000 on a personal loan, you could look for a debt consolidation loan of $10,000. As well as leaving you with a single repayment, you no longer have to deal with different interest rates and multiple fees, so it can also lead to savings in this way.

There are two types of debt consolidation: good credit debt consolidation and bad credit debt consolidation. The former involves you taking out an unsecured personal loan or balance transfer credit card to consolidate multiple credit accounts, while the latter may involve you taking out a debt agreement, which is a form of bankruptcy.

While debt consolidation is a good option for some, it may not be right for everyone. So, when should you be considering debt consolidation?

  • If you have trouble keeping up with monthly repayments. In this case, debt consolidation can reduce the number of repayments and simplify the management of your debt. This is especially true if you are nearing the credit limit of your cards or you have already reached the limit.
  • If you have a low-interest credit card with available credit. A balance transfer credit card might be an option to consider. These cards let you pay 0% p.a. for a set period for balances transferred. A debt consolidation loan could be considered for higher credit card debt or if you want to consolidate a range of different credit types.
  • If you have equity in your home. In this scenario, the interest rate your home loan attracts is considerably lower than that of a personal loan or credit card, so debt consolidation may be a viable option for you to consider.
  • If you have bad credit and a large amount of debt. You can consider a debt consolidation loan in order to take back control of your finances. There are some loan companies that specialise in bad credit debt consolidation loans; although keep in mind some of these might be debt agreements which are a form of bankruptcy.

What debt can I consolidate?

It is possible to consolidate a variety of debt using one of these loans. Common types of debt that are consolidated include the following:

  • Personal loans. This is a common type of debt to consolidate. You can take out a debt consolidation loan to consolidate two or more separate personal loans, a personal loan and another type of credit, or even refinance a personal loan to one with a lower rate and/or fees.
  • Credit cards. If you have a large outstanding balance due on your credit card, you can consider taking out a personal loan to pay it off. This is often an option when you want to consolidate your credit card with another debt or you aren’t a candidate for a balance transfer.
  • Store/charge cards. Balances can easily increase on store and charge cards, as they do on credit cards, making them another type of debt people choose to consolidate.
  • Other credit accounts. Depending on the loan you take out, you may also be able to consolidate other types of debt. This can include private loans, debts to utility companies (for example, electricity, phone, Sky). Look into what the credit provider will allow you to consolidate.

5 steps to consolidating your debt with a personal loan

Once you have decided to consolidate your debt, you will need to do the following:

  1. Calculate how much you need to borrow to cover your debts. This should include any fees or charges you will have to cover in order to pay off your existing debts early.
  2. Research and compare personal loan products to find one that meets your needs.
  3. Apply for the personal loan.
  4. Use the funds to pay off your other debts, along with any fees or charges.
  5. Continue to make repayments on your personal loan until it has been repaid.

Case study

Gary is a 28-year-old labourer. He currently owes $5,000 on his credit card and still has $3,000 to pay off on the car loan he took out four years ago. He has an interest rate of 19.99% p.a. on his credit card and 9.1% p.a. on his car loan, but is struggling to juggle his repayments.

He has found a personal loan that will let him borrow $8,500 with a rate of 7.7% p.a. He decides to take out the loan and uses the funds to pay off his credit card and car loan, as well as the fees and charges for paying off his loan early.

Instead of having to manage multiple repayments at higher rates, Gary now just makes one repayment at a rate of 7.7% p.a., saving him both time and money.

How to compare debt consolidation loans

  • Pros and cons of debt consolidation


    • Lower your repayments The majority of people who opt for debt consolidation do so in order to save on ongoing costs.
    • No more phone calls from debt collectors If you are falling behind with payments you probably receive a number of pesky phone calls from people chasing you for money. Once you consolidate all your loans, the phone calls will more than likely stop.
    • You could avoid bankruptcy If you are struggling to make multiple payments and think you might be headed for bankruptcy, consolidating your debt can give you a chance to get back on track.


    • You could lose your property to foreclosure If you get a debt consolidation mortgage and fail to make timely payments, you give the lender the right to foreclose on your property. The lender uses your property as collateral towards the amount you borrow; so if you fail to make repayments you stand to lose the property in question.
    • Increasing debt There are instances when people who opt for debt consolidation end up increasing their debt. For example, if you consolidate your credit card balances through a debt consolidation mortgage, you may start racking up further debt on your credit cards and increase your problems.

    Five tips for debt consolidation

    While taking out a debt consolidation loan can help you reduce the interest you pay and better manage your repayments, it is up to you to make the most of your debt consolidation efforts. The following are some useful tips to help your debt consolidation loan work best for you:

    1. Work out a debt management plan. If you are in a position where you need to enter a debt agreement with your creditors, it is important you agree to a plan that is manageable. These agreements are informal and can be worked out between you and your credit provider. If you choose to take out a debt consolidation loan, make sure the debt management plan you enter into is the right choice for you.
    2. Use a budget. Budgeting your debt consolidation repayments ensures they remain manageable over the term of the loan. How much do you need to pay each month to ensure your debt is paid off? Work your loan repayments into your budget before you take out the loan.
    3. Compare your options. Make sure you take a look at all the options available to you before you apply for a debt consolidation loan. Are you applying for the most competitive option available? Ensure you look at fees as well as rates and any additional features you may have access to, to see if you are getting the best deal for you.
    4. Make extra repayments. If your loan allows for it, making additional repayments can help see your loan paid off sooner and save interest. Make sure you won’t be charged fees for additional repayments, lump-sum payments or early repayment penalties depending on how you plan to repay your loan. If you find you save a considerable amount on interest from consolidating your debt, make sure to put this saving back into your loan.
    5. Look for ways to cut down on your expenditure. Are there any ways you can cut down on your outgoings? By cutting down your expenditure you will have more money to make additional repayments, the benefits of which are explained above. Ensure you are in a safe position to manage your repayments and pay back your debts.

    Frequently asked questions

    The debt consolidation road map can be tricky to navigate and you may not get all the answers you need from your bank or financial planner.

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