Debt consolidation loans in NZ
See whether one loan would cost you less than your debts do now, then have a licensed broker check the numbers with you.
$683 a month
$24,573 paid back in total, $3,296 less than three debts
$20,000 over 3 years at the 13.90% p.a. fixed rate at ANZ and ASB, no fee, checked 21 Oct 2026. Fees and conditions are below.
What is a debt consolidation loan?
One new loan that pays off your other debts, so you make one repayment instead of several. It can clear credit cards, store cards, hire purchase, buy now pay later and personal loans.
You still owe the same amount, plus any fee added to the loan. What changes is the rate, the term and who you pay.
- 1
List every debt with its balance, rate and repayment.
- 2
Apply to one lender for the total.
- 3
Check the lender pays each old creditor directly. Westpac, Gem and the Co-operative Bank do.
- 4
Make one regular repayment until the end date.
Will consolidating my debts save money?
Only if the new rate and fees are lower and the new loan ends no later than your debts would. Miss one of those and you can pay more, even with a smaller repayment.
Put your own debts in below. It opens on $20,000 of debts costing $27,869 at today's repayments. One loan at 13.90% saves $3,296 over 3 years and costs $3,521 more over 7.
Your debts now
Your statement or app shows the interest rate. Buy now pay later with no interest: enter 0.
Debt consolidation rates in NZ, October 2026
Rates start at 7.99% at Harmoney and go up to 29.99% at Gem, with set-up fees from $0 to $380. BNZ, ANZ, ASB and Westpac sit in between at 12.90% to 13.90%.
Where you land depends on your credit history, so read each row as the best case. Compare Loans doesn't list every lender, and none of these pays to appear.
| Lender | Rate (p.a.) | Fee | Each week | Paid back in total |
|---|---|---|---|---|
| Harmoney7.99%–24.99% · $150 fee | 7.99%–24.99% | $150 | $94 | $24,458 |
| Finance Now8.25%–29.95% · $215 fee | 8.25%–29.95% | $215 | $95 | $24,686 |
| The Co-operative Bank9.95%–17.75% · $145 fee | 9.95%–17.75% | $145 | $98 | $25,589 |
| Gem9.99%–29.99% · $240 fee | 9.99%–29.99% | $240 | $99 | $25,733 |
| Pioneer Finance9.95%–22.95% · $195–$375 fee | 9.95%–22.95% | $195–$375 | $100 | $25,881 |
| BNZ12.90% · $50 fee | 12.90% | $50 | $105 | $27,230 |
| Unity12.90%–22.90% · $200 fee | 12.90%–22.90% | $200 | $106 | $27,434 |
| ANZ, ASB and Westpac13.90% · $0 fee | 13.90% | $0 | $107 | $27,774 |
Each week and total: $20,000 over 5 years at each lender's lowest advertised rate, with the highest set-up fee added. Rates from each lender's own page, checked 21 Oct 2026.
Check the numbers with a brokerWhich debts can I consolidate in NZ?
Most everyday debts: credit cards, store cards, hire purchase, buy now pay later, and personal and car loans. Some are better left where they are, because moving them would cost you more.
| Debt | Consolidate it? | Why |
|---|---|---|
| Credit cardsYes | Yes | ANZ, Westpac and the Co-operative Bank list them. |
| Store cardsYes | Yes | ANZ, ASB and the Co-operative Bank list them. |
| Hire purchaseYes | Yes | ANZ, ASB and the Co-operative Bank list it. |
| Buy now pay laterYes | Yes | The Co-operative Bank lists it. |
| Personal and car loansYes | Yes | Check the early repayment fee first. |
| Payday loansAsk first | Ask first | None of the 12 lenders lists them. |
| Student loanNo | No | It's interest-free while you live in NZ. |
| IRD tax debtNo | No | IRD sets up instalments for you in myIR. |
| MortgageNo | No | It's usually your cheapest debt already. |
| Debts with a collectorAsk MoneyTalks | Ask MoneyTalks | A free mentor can negotiate first. |
From the consolidation pages of the 12 lenders, checked 21 Oct 2026. A payday loan at 50% p.a. or more is a high-cost loan under the Credit Contracts and Consumer Finance Act, s 45C.
What does consolidating $20,000 of debt cost?
Over 3 years, one loan costs you less than the three debts. Over 5 years it's about the same, and over 7 it costs more, even though the repayment is lower.
Say you owe $20,000 across a credit card, a store card and a car loan. At today's repayments that costs $27,869 and takes 43 months to clear. One loan at 13.90% clears it in 36 months for $24,573.
| Debt | Balance | Rate (p.a.) | Each month | Paid back in total |
|---|---|---|---|---|
| Credit card$9,000 at 20.95% | $9,000 | 20.95% | $300 | $12,858 |
| Store card$4,000 at 25.99% | $4,000 | 25.99% | $150 | $6,033 |
| Car loan$7,000 at 16.95% | $7,000 | 16.95% | $249 | $8,978 |
| All three today | $20,000 | 20.56% | $699 | $27,869 |
| One loan at 13.90% | Each month | Paid back in total | Against your debts |
|---|---|---|---|
| Over 3 years$3,296 less than your debts | $683 | $24,573 | $3,296 less |
| Over 5 years$9 less than your debts | $464 | $27,860 | $9 less |
| Over 7 years$3,521 more than your debts | $374 | $31,390 | $3,521 more |
Estimate only, not a quote or an approval. Your rate depends on your credit and the lender. Rates checked 21 Oct 2026.
Check the numbers with a brokerWhen does consolidating make it worse?
When the new loan runs longer, costs more in fees, puts your car or house at risk, or your cards fill up again. Any one of these can wipe out the saving.
- A longer term. Over 7 years at 13.90%, $20,000 costs $374 a month and $31,390 in total, $3,521 more than your three debts.
- A higher rate plus fees. At MTF Finance's 18.00% sample rate for "Good" credit, with its set-up and admin fees, $20,000 over 5 years costs $525 a month and $31,491 in total, $3,622 more.
- Putting up your car or house as security. The lender can repossess it if you stop paying.
- Cards that fill up again. BNZ tells borrowers not to take out new loans or cards after consolidating, because new spending lands on top of the loan.
Consolidating can lower your regular payment but may increase the total you pay over a longer term. Ask the broker for the total cost of each option.
MTF Finance sample unsecured rate, fixed, with its establishment fee of up to $380 and admin fee per instalment, checked 21 Oct 2026.
Is debt consolidation a good idea for me?
Yes, when all five of these are true for you. If even one isn't, it's unlikely to save you money.
- The new rate is below your debts' average rate (20.56% in the example).
- The new loan ends no later than your slowest debt would (43 months in the example).
- New fees, plus any early repayment fees, cost less than the interest you save.
- The repayment fits your budget after rent, food, power and transport.
- You'll close the cleared cards or cut their limits.
If a check fails, call MoneyTalks, FinCap's free helpline, on 0800 345 123. A free financial mentor will go through it with you.
The five checks follow Sorted's consolidating-debt guide.
Why won't anyone give me a consolidation loan?
Usually because the lender can't see how you'd afford it. Every lender has to check you can repay without real hardship, and they also weigh defaults on your file, irregular income, a short-term visa and a lot of existing debt. MoneyHub says a consolidation loan is "probably" not an option when your personal debt is more than 50% of your income.
Every bank wants you to be 18 or over. Here's what else each one asks:
- ASB: an NZ citizen, resident or work visa, over $20,000 a year, and an ASB account to apply online.
- ANZ: a work visa issued for 2 years or more with 1 year left, and three months of statements for each non-ANZ debt.
- BNZ: $35,000 a year or more and a BNZ account to apply online.
- Westpac: a Westpac transaction account.
- Unity: regular income, a satisfactory credit report and a fixed address (renters included).
One lender's no doesn't mean every lender will decline. Personal loans lists more lenders. An offer that skips credit and affordability checks is a reason to stop.
Each lender's own page, checked 21 Oct 2026. The Credit Contracts and Consumer Finance Act (CCCFA) requires every lender to check that you can repay without substantial hardship.
Should I put my debts on my mortgage?
Only if you keep paying it off fast. The home loan rate is lower, but spreading short debts over 25 years usually costs more in the end. Adding the $20,000 at 5.50% over 25 years costs $123 a month and $36,845 in total, $8,976 more than your three debts.
Keep paying the old $699 a month instead, and it clears in 31 months for $21,487, $6,382 less. Refinancing covers top-ups and break fees.
5.50% p.a. is an example rate, not a lender's quote. Sorted's consolidating-debt guide recommends keeping the old repayment.
How does Compare Loans help with consolidation?
Compare Loans passes your enquiry to one licensed broker. The broker checks the lenders on their panel and shows you the total cost of each option before you sign anything. Nothing goes ahead unless you choose an option and apply.
- 1
Tell Compare Loans roughly what you owe, your region and whether you own a home.
- 2
Take the licensed broker's call at the time you choose.
- 3
Ask for each option's total repayable, end date and fees.
- 4
Decide with those numbers. A lender checks your credit and affordability when you apply.
Compare Loans does not lend money or give financial advice.
What else do people ask about consolidation?
Does debt consolidation hurt my credit score?
Applying adds one credit enquiry to your file at each credit reporter the lender checks, so apply to one lender at a time. After that, paying on time helps your score, because lenders now share on-time payments as well as defaults.
How much is a $50,000 consolidation loan per month?
About $1,161 a month over 5 years ($69,649 in total), or $934 a month over 7 years ($78,476 in total), at 13.90% fixed with no fee. The 7-year loan costs $8,827 more for a repayment $227 lower. ANZ lends up to $50,000, Westpac up to $70,000, and Harmoney and Pioneer Finance up to $100,000.
Can I get a debt consolidation loan with bad credit in NZ?
Some lenders will look at your application at a higher rate, because they price the loan on your credit history. Gem's rates go up to 29.99% and Finance Now's to 29.95%, against 13.90% at ANZ, ASB and Westpac. Every lender still checks credit and affordability, and no lender can promise approval. Consolidation with bad credit covers lenders that assess applicants with defaults.
Should I close my credit cards after consolidating?
Yes, close each card the loan paid off, or cut its limit, so a new balance can't build on top of the loan. Equifax NZ's then managing director told OneRoof in 2023 that closing an account with a good record is good for you. Ask each card provider to confirm in writing that the account is closed with a $0 balance.
Can I consolidate if I'm already on a hardship arrangement?
Talk to your current lender first. The arrangement is an agreement with that lender, and a new loan that pays the debt out ends it. A MoneyTalks financial mentor (0800 345 123) can compare staying on the arrangement with consolidating, at no cost.
Is a balance transfer better than a consolidation loan?
It's cheaper if you can clear the card inside the 0% period, usually 6 to 12 months, before the card's standard rate kicks in. It suits debt of about $10,000 or less and good credit, according to MoneyHub. A consolidation loan has a fixed end date and also covers hire purchase, buy now pay later and car loans.
How long before a debt is uncollectible in NZ?
Usually six years after the missed payment, when you have a defence to most money claims. A written acknowledgement or a part payment starts a fresh six years, and the debt itself still exists. Ask a MoneyTalks financial mentor to check whether an old debt is out of time before you pay anything.
Limitation Act 2010, sections 11 and 47.
Does Kiwibank do debt consolidation loans?
No, Kiwibank no longer takes new personal loan applications. Its "Getting on top of your debt" guide covers balance transfers, and 0800 113 355 is the number if you're struggling with minimum repayments. A Kiwibank home loan customer can ask about a top-up, though spreading $20,000 over 25 years at an example 5.50% costs $8,976 more than the three debts unless you keep paying $699 a month.
Where can I get free help with debt in NZ?
If repayments are already hard to meet, MoneyTalks is free and confidential: 0800 345 123.
MoneyTalks, run by FinCap, puts you in touch with a free financial mentor by phone, free text (4029), email (help@moneytalks.co.nz) or live chat. A mentor helps you build a budget, deals with creditors and debt collectors, and sets up repayment plans with no new loan.
Can a broker check the numbers with me?
Yes. A licensed broker goes through each option's total repayable, end date and fees with you before you sign anything.
Compare Loans refers you to a licensed broker and is paid a referral fee by the broker. This is not a loan application. How Compare Loans makes money