What Types of Debt Can I Consolidate?

Have you been considering a debt consolidation loan, or personal loan with the intention of paying off existing debt? 

Debt consolidation can be a smart way to take better control of your financial health, and avoid paying more than you have to in fees and interest.

There are some types of debt that you are able to consolidate with a personal loan, and others that you can’t. 

Let’s break it down.

Credit cards

You can consolidate credit cards, as long as the credit card is not in arrears.

Personal loans

You can consolidate personal loans, as long as the loan was not taken out recently. The amount of time that the lender defines as recently may be less that 60-90 days ago, but you’ll want to check this before applying. 

Buy Now, Pay Later (Afterpay, ZipPay, ZipMoney, Pay in 4 )

You can consolidate Buy Now Pay Later debts, by paying off the debt using the funds from your debt consolidation loan. They can not be closed directly by the lender.

Car Finance

You can consolidate car/vehicle loans, or balloon payments, as long as the loan payments are up to date ad the baloon payment is not overdue.

Tax Debt

You can consolidate personal income tax debt which is current or on a payment plan, but not self employed/business tax.

Debts that can not be consolidated

The following debts can not be consolidated:

• Gambling debt
• Overdue debts
• Business debts
• Recent loans less that 60-90 days
• Loans that are in arrears

Further considerations

The following information applies to debt consolidation loans via Cash Today, and there may be additional terms and conditions, or disqualifications. Check with individual lenders as to their specific allowed debt types before applying. Lending criteria and responsible lending practices apply.