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Consolidate my debt.

Soapy sponge being squeezed on a blue car.

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How does debt consolidation work?

Say, for example, you have two different credit cards with debts of $3000 and $4000 each, and a personal loan with a debt of $7000. Each of these debts will likely have a different interest rate, repayment amount and due date, making it challenging to stay on top of them all.

To help simplify your financial situation, you can consolidate all these debts into one personal loan. This allows you to have just one set of recurring repayments to make over a set term, with a single interest rate.

If the interest rate on the personal loan is lower than your existing debts, this can also help you get ahead in reducing your overall debt.

You can use a personal loan repayments calculator to work out what your repayments could be.

Personal loan repayments calculator.

Why consolidate your debts?


The key advantages are:

  • One single set of recurring repayments that are easier to manage.
  • A clearer timeline of when you can be debt-free.
  • Greater control of your budget and cash flow.

Find the one that you want.

If you like to live on the wild side, you can always skip to the fun part by finding the car you want before getting loan pre-approval - though you should always have a thorough idea of your budget and what you’re looking for. When you’ve found the one, haggled a good price and shaken hands on it, it’s time to get the final sign off on your loan sorted.

We’ll need to get to know your car almost as well as you do, including make, model, odometer reading and whether it’s had any aftermarket work done.

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Get insured.

Despite not being a legal requirement in Australia, the rule of thumb is that if you can’t afford insurance, you can’t afford a car: don’t go anywhere or even leave the lot without it.

Types of insurance run from third party which only covers damage to someone else’s vehicle, all the way to comprehensive which can have your back come rain, hail, shine or accident.

Enquire about car insurance.

Your payment will take into account the kind of car you’re insuring, any previous insurance history, who’s driving it, whether you’ve previously been in an accident and where the vehicle is most commonly parked overnight. Remember to carefully go through the policy to know what you’re covered (and not covered) for, and in which circumstances so you’re never caught out.

Defence Bank works with leading Australian insurer CGU to give those who get their car loan with us a great deal on their car insurance as well - and applying is as easy as ticking a box during your loan application.

Frequently asked questions.

You can buy a new or used car or motorcycle with a car loan.

Great news! There are no fees for paying out your loan early.

The maximum loan amount is dependent on a number of factors, including a borrower’s ability to service (pay) the loan. Call us on 1800 033 139 to discuss your needs.

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