Best-value Debt Consolidation Loans

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Bundle all your repayments together so it is easier and cheaper to manage your debts

If you have trouble keeping track of all your repayments, debt consolidation loans could be the answer. These loans warehouse all your debt, from credit cards to personal loans, in one place.

Consolidation loans also typically have lower rates than other debt facilities. So credit card debts will be less expensive if rolled over to a debt consolidation loan.

These types of loans also help streamline your payments, all for one set of fees, if any at all, so you don’t need to worry about which loans to pay first and which to pay later.

According to buy now, pay later service ZipCo and its personal finance app Pocketbook, debt consolidation has been at the forefront of consumers’ minds during the pandemic.

From more than 1.8 million ZipCo and Pocketbook accounts, data suggests that spending for debt consolidation services was at its highest rate during the peak of the Covid-19 pandemic, up 38%. As an example, ZipCo says there were three weeks in

July when debt consolidation featured among the highest spending categories.

With debt consolidation high on our minds during the pandemic, this Best of the Best category holds great significance. Products were ranked by their comparison rate for a $30,000 unsecured loan over five years.

Not surprisingly, the lowest rates are offered by the nonbanks. MoneyPlace tops the tables in this category with a comparison rate of 7.65%, no upfront fee and no monthly fee.

In the bank category, Greater Bank offers the lowest rate this year at 9.34%. While it has a $250 upfront fee, there is no ongoing monthly fee.

Among the major banks, Suncorp offers a still very competitive rate of 10.08%pa, an upfront fee of $175 and a $5 monthly fee.