Debt Consolidation & Repayment Calculator

How this tool works

Reviewed 6 September 2026. Australian personal finance frameworks: Debt Snowball vs Debt Avalanche and APRA home borrowing amount benchmarks.

Calculation outline

1. Aggregates multiple consumer debts (credit cards, personal loans, car finance, BNPL) to determine combined balance, total minimums, and weighted average interest rate.
2. Simulates the Debt Avalanche strategy (paying debts in order of highest interest rate first) to mathematically minimise total interest.
3. Simulates the Debt Snowball strategy (paying smallest balances first) to generate psychological momentum and quick wins.
4. Models a single fixed-rate consolidation loan to evaluate simplified single-bill cash flow and net interest savings.
5. Exposes the "Adding other debts to your mortgage", proving how rolling short-term debt into a home loan significantly increases total lifetime interest.

Worked example

Example: rolling $39,500 of mixed consumer debt (weighted rate ~12.2%) into a 5-year consolidation loan at 8.99% p.a. reduces monthly payments from $1,010 to ~$830 and saves ~$5,000 in interest. Conversely, rolling it into a 30-year mortgage at 6.00% costs over $45,000 in interest.

Limits

• A lender must check your credit history and whether you can afford a combined loan.
• Assumes borrowers do not re-accumulate debt on paid-off credit cards or credit lines after consolidation.

Sources

• ASIC Moneysmart consolidate and pay off debts
• National Debt Helpline

This tool provides general information and illustrative estimates only. It does not consider your objectives, financial situation or needs and is not personal financial, tax or legal advice.