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Consolidation Loans

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Benefits of consolidation

How it works

FAQs

Eligibility

Loan details

Why consolidate your debts?

Open an account here, another there, swipe your credit card and gain discounts for opening more store accounts – many people believe they’re saving money by doing these things. But before they know it, they’re drowning in a sea of accounts and up to their ears in debt. We know it’s pretty scary to see there are multiple ways to end up in debt. The good news is, Jacaranda’s debt consolidation loans can help you breathe a little easier.

If you’re struggling to manage your repayments, consolidation loans can help you bundle all of your debts into one single payment and leave your bad credit where it belongs- in the past.

Having one debt consolidation loan usually outweighs the benefits of having multiple small debts lying around. Other benefits include:

It can save you money, either by having less interest or fewer fees to pay
One loan is cheaper to manage than multiple loans
Having just one loan means setting up a repayment plan is easy and gives you a better idea of when you’ll be debt-free
Having one easily-manageable debt is a good way to improve your credit rating

The benefits of debt consolidation

Simplify your life by simplifying your payments – this is what debt consolidation loans can do for you. If you’re someone who struggles to keep track of all your repayments and manage debt, consolidation loans could be significantly beneficial for you. While these loans will not necessarily benefit every person for all circumstances, it’s helpful to consider whether they’re a good decision for you.

One repayment, not several

One of the biggest challenges of maintaining multiple debts is dealing with the stress and clutter of handling multiple repayments. The more debt you take on, the more difficult it gets to track all repayment obligations. A debt consolidation loan allows you to reduce your multiple repayments into just one, with one interest rate. If you take out a debt consolidation loan, you will have to repay those debts and only pay one lender, one regular repayment.

Reduced interest

With a debt consolidation loan, the overall interest you will pay will often be reduced against what you’d pay on credit cards. While you should always check the interest rate of a debt consolidation loan before applying, it may be a solution that could save you some money in the long term.

Have a clear date of the end of your debt

Another benefit of consolidation loans is being able to have an end date on your loan. This can help you work towards paying off your debt in a single loan. Having all your debt and repayment dates simplified into one payment can help you understand clearly what you owe and how long it’ll take you to pay it all off.

How do debt consolidation loans work?

We know that dealing with debt is stressful enough as it is. So thankfully, the process of debt consolidation is simple and straightforward.

For example

Say you have three different credit cards with debts of $2,000, $3,000 and $5,500. This means you’re likely to have three different interest rates and be making three different repayments at different times each month. Naturally, this can feel overwhelming and make it harder for you to manage your cash flow.

When you take out a debt consolidation loan, you can pay off each credit card and any outstanding interest. You’ll just have one repayment to make every week, fortnight, or month over a set term. With Jacaranda’s debt consolidation loans, you can choose your own frequency of repayments.

Debt Consolidation FAQs

What is debt consolidation?

Debt consolidation is the process of combining multiple individual debts, such as credit card debts, utilities, etc. into one single repayment. This means no multiple annual fees and one regular repayment, with one interest rate. This method of merging and paying down your debts could reduce a lot of the clutter and stress surrounding the debts in your life.

How much can I borrow with consolidation loans?

You can apply for a debt consolidation loan ranging between $300 and $10,000 with Jacaranda Finance. The repayment period on these loans will range between 12 and 24 months depending on how much you apply for.

Can I get a debt consolidation loan with bad credit?

At Jacaranda, we believe having a bad credit score shouldn’t mean you have to endure financial stress. Our promise to you is to not let your past financial habits haunt you. Unlike traditional lenders, we don’t base our assessment solely off the result of a credit score check. We look at the bigger picture. Our highly reliable system uses your internet banking logins to obtain a read-only copy of your bank statements. This gives us an accurate representation of your income, expenses, spending habits and your overall relationship with money. These are factors which all play a part in determining whether or not you are eligible for a debt consolidation loan.

Do debt consolidation loans hurt your credit score?

Depending on how diligent you are with your repayment plan, debt consolidation loans have the potential to help or hurt your credit score. While reducing your debt may improve your credit score over time, debt consolidation is not typically used as a strategy to enhance your credit score. Check out some of these pros and cons for yourself:

Debt consolidation loans could help your credit score if:

You’re on time with your consolidation loan payments every month
You’re able to eliminate your balances, or reduce them to less than 30% of your credit limit on the card
You’ve changed your spending habits

Debt consolidation loans could hurt your credit score if:

You’re 30 days (or more) late on making your payments on the debt consolidation loan
You apply for loans for which you cannot qualify
You continue to make changes on your credit cards after you pay off your balances

What type of debts can I consolidate?

Whether it’s your credit card, car or bills, you have the choice to consolidate almost any type of debt with our debt consolidation loans. At Jacaranda, we offer personal loans, or debt consolidation loans, up to $10,000. Based on your own experience and current debts, we will tailor the loan to suit your personal needs. Generally though, we divide our loans into three categories: Small, Medium and Large loans.

How do loan repayments work?

Repaying your loan with Jacaranda is just as easy as applying for it. Our standard repayment method is Direct Debit. We set up a direct debit in line with your pay cycle, so your payments can be set up to come out of your account on a weekly, fortnightly or monthly basis. It is entirely up to you which day you choose.

We recommend setting it up so that your repayments fall on the same day as your payday. Selecting the right payment structure ensures that you always have enough money in your account. As long as you have enough cash in your account to cover the payments, they will just come out automatically. So, there’s no need to set reminders or risk forgetting them. Then, once your loan is paid off, the payments will stop automatically.

Am I eligible for a loan?

To qualify for a loan with Jacaranda you must:

👨‍🦰 Be over 18 years of age

🇦🇺 Be an Australian citizen or permanent resident

💸 Have received a regular income (for the last 90-days)

🏦 Have internet banking set up

📱 Hold a direct contact number and email address

What information do I need to provide?

To apply online with Jacaranda, we will need these from you:

📇 Personal details (i.e. Name, Address, DOB)

📱 Your phone number and email address

❓ The reason for your loan

🗄️ myGov details (if you receive Centrelink benefits)

🏦 Online banking and employment info

Loan details

Loan Amount:	$300 to $10,000
Loan Term:	12 months to 24 months
Repayment Frequency:	Weekly, Fortnightly or Monthly
Repayment Facility:	Direct Debit
Secured Options:	Secured and Unsecured
Interest Rate:	From 7.59% (secured loans)
Comparison Rate:	From 7.59% (secured loans)

Visit our personal loans rates page for a full breakdown of costs associated with Jacaranda Finance’s personal loans.

Apply for a secured loan with Jacaranda today!

Whether you need cash for unexpected bills, car repairs, or a holiday, look no further than Jacaranda for a secured personal loan. Here at Jacaranda, we understand that when you need money, there is no time to waste. Our loan application process is designed to be as easy and stress-free as possible. This is why our 100% online application form only takes a few minutes to complete and, if you submit during business hours, we could get you an outcome in just 60 minutes.* If approved, the cash could be in your Loan details ready to use in 60 seconds.**

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Jacaranda is 100% online. So, we do not accept applications over-the-phone. However, our friendly team is more than happy to answer any questions you may have.