“Peace of mind”: how Nick brought a car loan and two credit cards under control

Building a life while carrying expensive debt

Nick is a Canberra finance manager and accountant. He first came to Australia from India as an international student and later moved through employer sponsorship, permanent residency and citizenship.

Those milestones brought substantial costs. Nick was carrying a car loan at 11.99 per cent and balances on two credit cards, including one whose interest-free period was about to end.

Despite working with numbers every day, the combination still weighed on him. A psychologist suggested removing unnecessary sources of pressure where he could.

A higher repayment designed to finish sooner

Nick compared consolidation options through WeMoney and applied with OurMoneyMarket. He recalls the new rate being around 8 per cent.

The new repayment was $1,051.96 a fortnight. That was not a reduction in the scheduled payment. It covered the full combined balance and was designed to repay the debt faster. Nick expected the consolidation loan to finish in about two and a half years, compared with roughly three years remaining on the car loan alone.

Closing the doors to new debt

After consolidating, Nick cancelled one credit card, closed Afterpay and Zip accounts and began staying away from traditional consumer credit. He also started building savings.

“Peace of mind,” is how he describes the change. He says he is sleeping better and can see his overall position more clearly.

Nick’s story is a useful reminder that consolidation is not always about reducing the repayment. In his case, it was about lowering the rate on the car component, combining the balances and committing to a faster path out.

See what one repayment could look like for you

Use the debt consolidation calculator to explore how different repayment amounts and terms can affect the total cost.

Join WeMoney to bring your accounts together and see your finances in one place.

Disclaimer: Nick’s experience is his own and is not a guarantee of a similar result. The information in this article is general in nature and was prepared for information purposes only. It should not be considered financial advice and does not take into account your objectives, financial situation or needs. Consider whether it is appropriate for your circumstances and seek independent advice before making a financial decision.